26 U.S.C. § 504 : US Code - Section 504: Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities

Search 26 U.S.C. § 504 : US Code - Section 504: Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities

(a) General rule
An organization which -
(1) was exempt (or was determined by the Secretary to be
exempt) from taxation under section 501(a) by reason of being an
organization described in section 501(c)(3), and
(2) is not an organization described in section 501(c)(3) -
(A) by reason of carrying on propaganda, or otherwise
attempting, to influence legislation, or
(B) by reason of participating in, or intervening in, any
political campaign on behalf of (or in opposition to) any
candidate for public office,
shall not at any time thereafter be treated as an organization
described in section 501(c)(4).
(b) Regulations to prevent avoidance
The Secretary shall prescribe such regulations as may be
necessary or appropriate to prevent the avoidance of subsection
(a), including regulations relating to a direct or indirect
transfer of all or part of the assets of an organization to an
organization controlled (directly or indirectly) by the same person
or persons who control the transferor organization.
(c) Churches, etc.
Subsection (a) shall not apply to any organization which is a
disqualified organization within the meaning of section 501(h)(5)
(relating to churches, etc.) for the taxable year immediately
preceding the first taxable year for which such organization is
described in paragraph (2) of subsection (a).