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Old 08-27-2020, 01:46 PM   #68
Bruce Noland
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Default Re: NHRA and the "Bo Butner rule"?

Quote:
Originally Posted by KRatcliff View Post
I am not sure that an individual racer's promotion of his candidate of choice falls under the Department of Treasury's guidelines that you are referring to for non profit organizations. The Department of Treasury has provided some clarity on what they consider prohibited activities and I don't see where someone like Butner's car or anyone else would put their status at risk according to their guidance.

Please clarify within their guidance that you think their non profit status would be at risk or where this would fall.
Kyle,

A few years ago we did some research on this subject, And as I remember a 501(c)6 must declare, at the time they make application, whether or not they intended to do any additional lobbying other than for it's exempt purpose. I believe NHRA indicated they were only going to lobby for it's intended purpose. It will be forced to pay taxes if NHRA attempted to step outside of it's intended exemption. We all know how long and hard NHRA has fought to avoid paying taxes. NHRA also mentioned it's 501(c)6 status in it's memo. Of course, I am not a lawyer but I think Bo's political statement, or anything like it, would cause real headaches for NHRA with the IRS.
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