A business league will jeopardize its exemption under section 501(c)(6) of the Internal Revenue Code if it ceases to have as its purpose promoting the common business interest of persons engaged in a line of business. In addition, an organization's net earnings may not inure to the benefit of its members. These organizations may conduct political campaign and lobbying activities furthering their exempt purposes, but may have to pay a proxy tax if they use member dues for this purpose.

The following may also jeopardize exemption under Code section 501(c)(6):

• Business activities
• Performing particular services for individual persons
• Not filing annual return or notice

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