[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.7409-1]

[Page 493-494]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                          Judicial Proceedings
 
Sec. 301.7409-1  Action to enjoin flagrant political expenditures of 
section 501(c)(3) organizations.

    (a) Letter to organization. When the Assistant Commissioner 
(Employee Plans and Exempt Organizations) concludes that a section 
501(c)(3) organization has engaged in flagrant political intervention 
and is likely to continue to engage in political intervention that 
involves political expenditures, the Assistant Commissioner (Employee 
Plans and Exempt Organizations) shall send a letter to the organization 
providing it with the facts based on which the Service believes that the 
organization has been engaging in flagrant political intervention and is 
likely to continue to engage in political intervention that involves 
political expenditures. The organization will have 10 calendar days 
after the letter is sent to respond by establishing that it will 
immediately cease engaging in political intervention, or by providing 
the Service with sufficient information to refute the Service's evidence 
that it has been engaged in flagrant political intervention. The 
Internal Revenue Service will not proceed to seek an injunction under 
section 7409 until after the close of this 10-day response period.
    (b) Determination by Commissioner. If the organization does not 
respond within 10 calendar days to the letter under paragraph (a) of 
this section in a manner sufficient to dissuade the Assistant 
Commissioner (Employee Plans and Exempt Organizations) of the need for 
an injunction, the file will be forwarded to the Commissioner of 
Internal Revenue. The Commissioner of Internal Revenue will personally 
determine whether to forward to the Department of Justice a 
recommendation that it immediately bring an action to enjoin the 
organization from making further political expenditures. The 
Commissioner may also recommend that the court action include any other 
action that is appropriate in ensuring that the assets of the section 
501(c)(3) organization are preserved for section 501(c)(3) purposes. The 
authority of the Commissioner to make the determinations described in 
this paragraph may not be delegated to any other persons.
    (c) Flagrant political intervention. For purposes of this section, 
flagrant political intervention is defined as participation in, or 
intervention in (including the publication and distribution of 
statements), any political campaign by a section 501(c)(3) organization 
on behalf of (or in opposition to) any candidate for public office in 
violation of the prohibition on such participation or intervention in 
section 501(c)(3) and

[[Page 494]]

the regulations thereunder if the participation or intervention is 
flagrant.
    (d) Effective date. This section is effective December 5, 1995.

[T.D. 8628, 60 FR 62213, Dec. 5, 1995]

               Proceedings by Taxpayers and Third Parties