Rev. Rul. 84-59

1984-1 C.B. 5, 1984-17 I.R.B. 7.

                       Internal Revenue Service
                                 Revenue Ruling

                 POLITICAL CONTRIBUTIONS;  PUBLIC ANNOUNCEMENT

                           Published: April 23, 1984

Section 41. - -Contributions to Candidates for Public Office, 26 CFR 1.41-1:  Credit or deduction for political and newsletter fund contributions-definitions of certain items.

  Political contributions;  public announcement.  The filing of Federal Election Commission Form 2 or a letter containing the information required on Form 2 qualifies as a public announcement for purposes of the credit allowed by section 41 of the Code.

ISSUE

  Does the filing of Federal Election Commission (FEC) Form 2 or a letter containing the information required on Form 2 qualify as a public announcement for purposes of the credit allowed by section 41 of the Internal Revenue Code for certain political contributions?

LAW

  Section 41 of the Code provides that an individual who makes a contribution or gift of money to a candidate for public office is allowed an income tax credit of one-half of the contribution, up to a maximum of $50 ($100 in the case of a joint return).

  Section 41(c)(2)(A) of the Code defines the term "candidate," in part, as an individual who "publicly announces" before the close of the calendar year following the calendar year in which the contribution or gift is made that he or she is a candidate for nomination or election to a federal, state, or local elective public office.

  Section 1.41-1(h) of the Income Tax Regulations states that an individual  "publicly announces" that he or she is a candidate by making a positive statement available for media distribution that he or she is seeking nomination or election to a specific elective public office.

  Section 432(e)(1) of title 2 U.S.C. (1982) requires that each candidate for federal office (other than the nominee for the office of Vice President) shall designate in writing within 15 days after becoming a candidate, a political committee to serve as the candidate's principal campaign committee.  Under 11 CFR section 101.1 (1980), a candidate shall designate his or her principal campaign committee by filing a Statement of Candidacy on FEC Form 2 or by filing a letter containing the information required on Form 2 (the individual's name and address, party affiliation and office sought, the district and state in which federal office is sought, and the name and address of his or her principal campaign committee).  The form or letter must be filed in accordance with 11 CFR section 100.19, in the place of filing specified in 11 CFR Part 105.  Form 2 or a letter of designation must be made available for public inspection, under the provisions of 2 U.S.C. sections 432(g)(5) and 438(a)(4), within 48 hours after it is filed.

HOLDING

  The filing of FEC Form 2 or a letter containing the information required on Form 2 meets the public announcement requirement of section 41(c)(2)(A) of the Code and section 1.41-1(h) of the regulations for purposes of the credit allowed by section 41.

Rev. Rul. 84-59, 1984-1 C.B. 5, 1984-17 I.R.B. 7.