One who intends to leave others better off for his having existed.

5/8/13

On TREBIC and Illegal Lobbying

http://edcone.typepad.com/files/trebic-2010-990.pdf

Question 3 on page 3 isn't true.

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I believe Marlene Sanford has directly harmed poor renters by lobbying to eliminate RUCO.

I believe the mayor of Greensboro, Robbie Perkins is directly responsible for eliminating RUCO while saying the exact opposite in public.

I believe Robbie Perkins misled Greensboro's African American community along with other elected officials who didn't lift a finger to oppose the state gutting of RUCO.
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"What is a 501(c)(6) organization?

...a 501(c)(6) organization is a business league devoted to the improvement of business conditions of one or more lines of business.

Trade associations and professional associations are considered to be business leagues.

The mission of a 501(c)(6) organization must focus on the advancement of the conditions of a particular trade or the interests of the community.

A 501(c)(6) business league may further its exempt purposes through lobbying as its primary activity without jeopardizing its exempt status.

However, a 501(c)(6) organization that engages in lobbying may be required to either provide notice to its members regarding the percentage of dues paid that are applicable to lobbying activities, or pay a proxy tax.

Examples of 501(c)(6) organizations include the National Association of Truck Stop Operators, Home Builders Associations, and local chambers of commerce."

http://www.boardsource.org/Knowledge.asp?ID=3.174
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"The federal lobbying tax law, found in Section 162(e) of the Internal Revenue Code, denies a business tax deduction for all lobbying and political activity expenses incurred by businesses.

The law also requires that membership dues paid to 501(c)(6) trade or professional associations be treated as nondeductible business expenses to the extent of the association’s lobbying and political activity.

Therefore, 501(c)(6) associations that lobby must track their lobbying and political activity expenditures and then report to their members each year the percentage of their membership dues that are nondeductible as a result of these expenditures (or, alternatively, the association can elect to pay a “proxy tax” directly on these amounts to the IRS).

...All association expenses related to political campaigns and PACs must be counted as lobbying for purposes of the federal lobbying tax law.

While under federal election law, the Federal Election Commission (“FEC”) permits associations with “connected” PACs to pay the costs of administering and soliciting contributions to the connected PAC, all of these association-incurred expenses must be included in the association’s lobbying expenditures for purposes of the lobbying tax law.

...membership dues are not deductible based on amount of lobbying"

http://www.venable.com/myths-about-lobbying-political-activity-and-tax-exempt-status-06-02-2010/
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"A 501(c)(6) may engage in political activity, but must pay a 35% excise tax on the total amount of its direct political expenditures."
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Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office?

TREBIC's tax return says "no".

"6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?"

TREBIC did not answer this question.

http://edcone.typepad.com/files/trebic-2010-990.pdf

"Instructions for Schedule C, Form 990:

Political Campaign and Lobbying Activities

Proxy Tax

http://www.irs.gov/pub/irs-pdf/i990sc.pdf
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"Political expenditures.

Any expenditures made for political campaign activities are political expenditures...

Lobbying expenditures.

Lobbying expenditures are expenditures (including allocable overhead and administrative costs) paid or incurred for the purpose of attempting to influence legislation:

Through communication with any member or employee of a legislative or similar body, or with any government official or employee who may participate in the formulation of the legislation, and by attempting to affect the opinions of the general public."

TREBIC form 990 answer: "no"

b If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?
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"Complete if the organization is exempt under section...501(c)(6).

1 Were substantially all (90% or more) dues received nondeductible by members?

2 Did the organization make only in-house lobbying expenditures of $2,000 or less?
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1 Dues, assessments and similar amounts from members

2 Section 162(e) nondeductible lobbying and political expenditures

3 Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues

4 If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year?

5 Taxable amount of lobbying and political expenditures"

http://www.irs.gov/pub/irs-prior/f990sc--2010.pdf
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Lobbying Activities - Business Leagues

Seeking legislation germane to the common business interest is a permissible means of attaining a business league's exempt purposes.

Thus, an Internal Revenue Code (IRC) section 501(c)(6) business league may further its exempt purposes by lobbying as its sole activity without jeopardizing its exempt status.

However, a section 501(c)(6) organization that engages in lobbying may be required either to notify its members about the percentage of dues that are used for lobbying activities or to pay a proxy tax.

Proxy Tax - Tax-Exempt Organization Fails to Notify Members that Dues Are Non-Deductible Lobbying/Political Expenditures

...The Internal Revenue Code (IRC), in section 6033(e), imposes reporting and notice requirements on certain tax-exempt organizations described in sections 501(c)(4), 501(c)(5), and 501(c)(6) that incur nondeductible lobbying and political expenses.

Organizations that do not provide notices of amounts of membership dues allocable to nondeductible lobbying expenditures are subject to tax (commonly called a proxy tax) under IRC section 6033(e)(2) on the amount of the expenditures.

...Amounts paid for intervention or participation in any political campaign may not be deducted as a business expense. IRC 162(e)(2)(A).

...Amounts paid for direct legislative lobbying expenses at the federal and state (but not the local) level may not be deducted as a business expense.

Grass roots lobbying expenditures also are not deductible.

...If a substantial part of the activities of the IRC 501(c) organization consists of political campaign activities or lobbying, a deduction under IRC 162 is allowed only for the portion of dues or other payments to the organization that the taxpayer can clearly establish was not for political campaign or lobbying activities. Reg. 1.162-20(c)(3).

Grass roots lobbying and political campaign expenditures were also nondeductible.

...IRC 162(e)(3) denies a deduction for the dues (or other similar amounts) paid to certain tax-exempt organizations to the extent that the organization, at the time the dues are assessed or paid, notifies the dues payer that the dues are allocable to nondeductible lobbying and political campaign expenditures of the type described in IRC 162(e)(1).

...If it does not give notification, it must pay a proxy tax at the highest rate imposed by IRC 11 (currently 35 percent) on its lobbying and political campaign expenditures (up to the amount of dues and other similar payments received by the organization) during the taxable year.
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IRC 501(c)(4), IRC 501(c)(5), and IRC 501(c)(6) organizations are required to disclose information regarding their political campaign activities on Form 990, Return of Organization Exempt from Income Tax.

If an organization is excepted from the IRC 6033(e) requirements either because; substantially all of its dues were not deductible by its members or because its direct lobbying expenditures consisted solely of in-house expenditures that did not exceed $2,000, it must disclose this information on the Form 990.

If the organization does not meet either of these exceptions, it must disclose the information necessary to determine if it is subject to the proxy tax.

This information consists of the total dues received from members, the amount of its IRC 162(e) lobbying and political campaign expenditures, and the amount it disclosed to its members as the nondeductible portion of dues. IRC 6033(e)(1)(A)(i).

The amount disclosed begins with the organization's lobbying and political campaign expenses determined in accordance with IRC 162(e).

Direct lobbying of local councils or similar governing bodies with respect to legislation of direct interest to the organization or its members and in-house direct lobbying expenses if the total of such expenditures is $2,000 or less (excluding allocable overhead expenses) should be excluded from the amount disclosed.
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Which means anything above should have been disclosed?
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...Under-reporting political campaign expenditures may also subject the organization to a $10 per day penalty under IRC 6652 for filing an incomplete or inaccurate return.
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“influencing legislation ” involves the following activities: (A) Any attempt to influence any legislation through a lobbying communication; and (B) All activities, such as research, preparation, planning and coordination, including deciding whether to make a lobbying communication, engaged in for a purpose of making or supporting a lobbying communication.
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Nondeductible lobbying and political expenditures ...include expenditures paid or incurred in connection with (1) influencing legislation; (2) participation in, or intervention in, any political campaign on behalf of (or in opposition to) any candidate for public office; (3) any attempt to influence the general public with respect to elections, legislative matters or referendums; or (4) any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of that official.
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http://hartzman.blogspot.com/2012/09/pig-poultry-politics.html

"Pig, Poultry and Politics"

Thursday, October 13, 2011
4:30 - 7:00 p.m.
Crystal Garden @ Castle McCulloch
3925 Kivett Drive in Jamestown

Tickets are $30; will be $35 day of the event

This Event is not open to the general public."

http://trebic.org/pigspoultrypolitics/purchasetickets.html
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Says Political Rally.

"rally

v. ral·lied, ral·ly·ing, ral·lies

1. A gathering, especially one intended to inspire enthusiasm for a cause: a political rally.

1. To call together for a common purpose; assemble: rally troops at a parade ground.

1. To come together for a common purpose.

2. To join in an effort for a common cause:"
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Who introduces the candidates to the donors?

What happens to the "outside looking in" candidates at these "forums"?
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Why does the invite say"

"Are you a member of: (Check all that apply) TREBIC GBA GRRA RCA HPRAR HP RCA NAIOP PTAA  Other __________________________  None of the above"

http://www.trebic.org/images/PPPwDates12.pdf
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North Carolina Lobbying Laws

http://www.secretary.state.nc.us/lobbyists/legislation.aspx

§ 120-47.1. Definitions.

The term "legislative action" means the preparation, research, drafting, introduction, consideration, modification, amendment, approval, passage, enactment, tabling, postponement, defeat, or rejection of a bill, resolution, amendment, motion, report, nomination, appointment, or other matter by the legislature or by a member or employee of the legislature acting or purporting to act in an official capacity.

The term "lobbyist" means an individual who: a. Is employed and receives compensation, or who contracts for economic consideration, for the purpose of lobbying; or b. Represents another person and receives compensation for the purpose of lobbying.

§ 120-47.9. Punishment for violation.

Whoever willfully violates any provision of this Article shall be guilty of a Class 1 misdemeanor.

In addition, no lobbyist who is convicted of a violation of the provisions of this Article shall in any way act as a lobbyist for a period of two years following his conviction.

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