Lobbying and political expenditures are usually incurred to achieve one or more of three purposes: to influence the process of selecting public officials, to influence legislators in the exercise of their authority through direct lobbying, or to influence legislators in the exercise of their authority by indirect or “grass roots” lobbying. It is important to be able to distinguish between those activities that generate deductible expenses and those that do not. This course explores the deductibility of various expenses incurred in order to influence the political process.

After completing this course you be able to: 

• Distinguish between political and lobbying expenditures which are deductible and those that are non-deductible.
• Understand the various forms of expenditures associated with the political process and the circumstances under which they may be deductible as business expenses. 
• Recognize circumstances when expenses are incurred to influence the political process. 
• Understand the “direct” test used as an initial threshold to determine whether a taxpayer may take deductions for lobbying expenses based on the legislation’s impact on the taxpayer’s business. 
• Understand the deductibility of expenses related to expert testimony, as well as traditional lobbying efforts. Be familiar with the I.R.S.- approved methods of allocating lobbying expenses, as well as the three safe harbor accounting methods for making the allocations.

CPE

1.5

CLE

N/A