What is a lobbying activity, and how to report them on Form 990-EZ?
802 views | Last modified 12/22/2023 2:35:26 AM EST |

Lobbying is generally any attempt made by individuals or private interest groups to influence the government’s decisions. The activities intended by nonprofits to influence foreign, national, state, or local legislation are called lobbying activities.

Reporting lobbying activities with Tax 990’s Interview-based Filing Style

1. Log into your Tax 990 account.
2. On the dashboard, click on the “Start Return” button
3. Select the “Form 990-EZ” option on the list of Federal returns
4. Enter your organization details and click “Next.”
5. On the “Organization Tax Year” page, select the year you want to file the information return. Once done, the subsequent steps will be to complete the actual parts of the form. 
6. Under Section 501(c)(3)/4947(a)(1) Organization only section, click "Start" in the Lobbying Activities.
7. Now, select "Yes" for the question, "Did the organization engage in lobbying activities or have a section 501(h) election in effect during the tax year?" and provide all of the information about your lobbying activities.
8. Now, click “Next” and follow the subsequent steps as prompted
9. Review the details, pay, and click the “Transmit” button to transmit your return to the IRS.

Reporting lobbying activities with Tax 990’s Form-based Filing

To report lobbying activities using our form-based filing, please go to Part VI, line 47. Once there, select “Yes” for the question, “Did the organization engage in lobbying activities or have a section 501(h) election in effect during the tax year?” and report those lobbying activities on Schedule C attachment.

Reporting Schedule C, Political Campaign and Lobbying Activities

In addition to reporting lobbying activities, if you’re a Section 501(c)(3) organization and answered “Yes” to the question, “Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year?” on Part VI line 47, then you must complete Part II of Schedule C, Political Campaign and Lobbying Activities (Form 990 or 990-EZ).

However, Schedule C Part II-A must be filled only if your organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)). If your organization is exempt under section 501(c)(3) and has not filed Form 5768, it must complete only Part II-B of Schedule C.

To know how to report lobbying activities in Form 990, click here.