June 6, 2017 •
Ask the Experts – Does the 5% de minimus Rule Apply to your LD-2 Quarterly Report?
Q. We file our federal LD-2 quarterly lobbying reports under the IRC definitions. Does the IRC 5 percent de minimus rule apply to capturing reportable expenditures on our quarterly LD-2 disclosure?
A. In short, yes, but with a caveat. If your organization has opted to compile lobbying expenditures using Method B or Method C, the 5 percent de minimus rule applies. As a frame of reference, the IRC allows taxpayers an exception for including the time of individuals who spend less than 5 percent of their time engaged in lobbying activities as defined by the IRS…
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