This site is about the overreaching political power of the NC Association of Realtors flush with money from cashing in your equity 6% at a time, leaving you to pay for growth with property taxes, year after year, with or without cash flow. In the last few years NCAR has pumped millions of dollars into NC political campaigns at the state and local level. They have spent millions more to defeat Local Options for Local Governments with misleading ads.

Thursday, August 14, 2008

Note to IRS

Re: Political Campaign and Lobbying Activities of the North Carolina Association of Realtors, an IRC 501(c)(6) Organization.

Proxy taxes? We ain't got no proxy taxes. We don't need no proxy taxes! I don't have to show you any stinkin' proxy taxes!

"Like it or not, we are in the business of politics"
Wendell Bullard, NCAR President 2008
"If there is anyone who doesn’t think we are in politics…think again"
Cindy Chandler, NCAR President 2006
In general, no deduction is allowed for expenditures in connection with any attempt to influence the general public or segments thereof with respect to legislative matters, grassroots lobbying; elections; or referendums. See IRC § 162(e)(1)(C).
If the actual lobbying and political campaign expenditures of an organization subject to IRC 6033(e) exceed the amount that it notified its members was not deductible (either because the expenses were higher than anticipated or the dues receipts were lower), the organization is liable for a proxy tax on the excess amount. IRC 6033(e)(2)(A). The organization may seek a waiver of the proxy tax.

An organization may use this waiver procedure only if it sent dues notices at the time of assessment or payment of dues that reasonably estimated the dues allocable to nondeductible lobbying and political campaign expenditures.
Public copies of IRS 990 tax returns for NCAR indicate that NCAR did not elect to use this waiver on line 85h.
The amount subject to the IRC 6033(e)(2) proxy tax equals lobbying and political campaign expenditures under IRC 162 minus the amount disclosed to the members as nondeductible.

For more IRS information read: IRC 501(c)(6) Organizations and IRS procedure for Examining Business Leagues - IRC 501(c)(6)

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