Meet Gamble Hayden, Coordinator, Federal Compliance Services!

What are your areas of expertise?

I am a member of the Compliance Team focusing primarily on issues related to Federal lobbying such as registration and reporting.  I am also the coordinator of the organization’s Diversity, Equity & Inclusion (DEI) initiatives.

How long have you been with State and Federal Communications?

I have been with State and Federal Communications for over 7 years, and I’m also a former client!

How do I help our clients?

I assist the Associate Director of Federal Compliance Services with the filing of our clients’ Federal LD-2 and LD-203 reports.  In addition, I support the Assistant Director of Compliance Services with information related to the filing of our clients’ State Contribution Reports as well as our Corporate Contributions Compliance (C3) Program.

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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Here is your chance to “Ask the Experts” at State and Federal Communications, Inc. Send your questions to experts@stateandfed.com.

We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or email with questions about your particular company or organization. As always, we will confidentially and directly provide answers and information. Our replies are not legal advice, rather analysis of laws, rules, and regulations.

Q. For federal income tax purposes, our organization has been using the aggregate amounts reported on our quarterly LD-2 lobbying activity report as our nondeductible lobbying expenses.  Can the expenditures we compile for LDA reporting be used interchangeably for tax purposes?

A. In a word: maybe – It depends on the method of LDA reporting you’ve opted to follow.  If you file your LD-2 report using the IRC definitions (method C), then the number you compile and report on your LD-2 can be used interchangeably for tax purposes.  However, if you compile and report your quarterly lobbying expenditures using LDA definitions (method A), the results will not accurately reflect nondeductible lobbying expenses as defined by the IRS.  Because the definition of “lobbying” differs between the LDA and the IRC, the two compilation methods will produce very different results.  If you use LDA definitions to compile your quarterly LD-2, your organization must employ a second process by which to determine your nondeductible lobbying expenses for tax purposes.  A lobbying registrant can determine each year which method they will use to compile the LD-2 report.  Once a method has been selected, a registrant must use that method for all four quarterly reports during that year.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

There still might be a few of you out there who remember before BCRA and HLOGA, when we only needed to submit a quarter of a page card as our federal lobbying report. Those were the days, my friend!

These days you need to clear your schedule so you can:

1. Compile and track activity in accordance with your organization’s needs;
2. Conduct extensive outreach and follow up to capture applicable expenses/costs;
3. Obtain salaries of all employees engaged in lobbying activities—whether registered or not;
4. Respond to questions about reporting requirements;
5. Provide definitions for determining applicability;
6. Institute tracking mechanisms for Issues and Agency contacts;
7. Coordinate with outside consultants to ensure accurate reporting;
8. Coordinate LD-203 filing process;
9. Prepare documentation in case of an audit; and
10. File the report.

What??? You are not doing this? You are guesstimating! Tell me that is not the case.

If you are in DC you have probably seen me with Rebecca South, Federal Compliance Associate. She has created an amazing program to help the top Fortune 500 companies insure timely and accurate compliance for the LD-2 and LD-203 reports. If we can help alleviate your quarterly headaches, please feel free to contact her at rsouth@stateandfed.com.

Until next month, remember the LD-2 isn’t the only report due in April. According to our Key Dates chart, there are 112 lobbying/employer reports due in this country’s states, counties, and cities.

Q.  As an organization employing in-house lobbyists, what expenditures am I required to capture for inclusion in the aggregate dollar amount reported on my quarterly Federal LD-2 report?

A. There are a variety of expenditures that Federal registrants are required to track and report in an effort to provide a good faith estimate of their activity.  These expenditures include:

• Compensation, expenses and overhead associated with “registered” lobbyist employee activity.  For Federal purposes, a “registered” lobbyist is an individual who meets the statutory definition of a lobbyist and is listed by name on the LD-2 report;
• Compensation, expenses and overhead associated with any non-lobbyist employee who engaged in lobbying activity during the quarter (even though they do not meet the statutory definition of lobbyist).  Their names are not listed on the report, but the value of their activity is included;
• Dues paid to an association or membership organization during the quarter that are attributable to lobbying.  This amount is typically a percentage of the overall payments made to the membership organization and is ascertained by speaking with the outside entity directly.  Importantly, dues payments for lobbying activities should be included in the estimate for the quarter in which they are paid and cannot be apportioned over a longer period of time;
• Retainers/fees incurred during the quarter to outside consultants/firms for lobbying activities.  These fees are required to be included during the quarter in which they are incurred regardless of whether billing or payment has been made.

If we can be of assistance in helping to identify reportable expenditures, please let us know.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.