Exempt Organization Tax Issues: Compliance and Risk Avoidance in 2002

Originally published September 25, 2002

This outline addresses new developments in three areas of the tax law: (1) political activities; (2) IRS audits and other activities; and (3) controlled subsidiaries. Other issues that will be discussed in this session of the Symposium are covered by materials prepared by Paula Cozzi Goedert.

There are several recent developments of significance in the laws and regulations governing political activities of exempt organizations. One of these developments, the passage of the Bipartisan Campaign Finance Reform Act of 2002, which amended The Federal Election Campaign Act ("FECA"), is covered in another session of this Symposium and will not be covered here. This handout covers the tax rules governing political activities. The most important developments in the tax area are: