Summary: To increase public disclosure about lobbyists who seek to influence Congress and the executive branch, the Lobbying Disclosure Act of 1995 requires paid lobbyists to register with Congress and report semiannually on their lobbying activities. GAO is required to review the reporting of lobbying activities by groups that have employees who lobby on their behalf and have the option of reporting their lobbying expenses using the definitions of lobbying provided by either the act or the applicable Internal Revenue Code provision--sections 4911 or 162(e) that they use for tax purposes. Section 4911 imposes taxes on lobbying expenses exceeding certain limits paid by tax-exempt, nonprofit groups, known as public charities. Section 162(e) generally concerns the denial of income tax deductions by businesses for lobbying. This report (1) describes the differences in how lobbying is defined by the act and sections 4911 and 162(e); (2) determines the impact that differences in the definitions may have on registration and reporting under the act, including information on the number of groups using each definition and the expenses they have reported; and (3) identifies and analyzes options, including harmonizing the three definitions, to better ensure that the act's public disclosure goals are achieved.
