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Section 527 suit dismissed

On Christmas Eve, the 11th Circuit dropped a lump of coal into the Mobile Republican Assembly's stocking by reversing its win in a suit against the requirements of Section 527 of the Internal Revenue Code. The opinion is here. The MRA, other Republican organizations, and several individual contributors had sued to invalidate the portions of sec. 527(j) added in 2000 which require 527 organizations to "the name, address and occupation of each contributor who gives more than $200 in the aggregate, as well as the name and address of each recipient of more than $500 in aggregate expenditures." If the organization does not make the disclosures, it is subject to the highest corporate tax on its income.

While the district court had held that the imposition of the tax was a penalty not subject to the Anti-Injunction Act and had enjoined it, the circuit court held that the Anti-Injunction Act applied and remanded the case for dismissal for lack of subject matter jurisdiction.