Wellness, Inc., a 501(c)(3) organization, makes lobbying expenditures of $340,000 this year. Exempt-purpose expenditures by Wellness were $600,000 for the first six months of the year and $950,000 for the last six months of the year.

Question Content Area

a. Determine the Federal income tax consequences to Wellness if it does not make the 501(h) lobbying election.

Could Wellness forfeit its exempt status?

YesNo

Wellness, Inc. is assessed a penalty tax of $fill in the blank 7fd55bf66fa8062_2.

Question Content Area

b. Determine the Federal income tax consequences to Wellness if it does make the 501(h) lobbying election.

If Wellness makes the 501(h) lobbying election, it has a lobbying nontaxable amount of $fill in the blank 1be608ffcf8106d_1, a lobbying expenditures ceiling of $fill in the blank 1be608ffcf8106d_2 and is assessed a penalty tax of $fill in the blank 1be608ffcf8106d_3.