The section 6033(e) reporting and notice requirements do not apply to the following organizations: Section 501(c)(3) organizations Organizations whose lobbying and political expenditures consist solely of in-house lobbying expenditures that do not exceed $2,000 Organizations that establish to the satisfaction of the IRS that substantially all the dues or similar amounts they receive are not deducted by its members as business expenses Revenue Procedure 98-19, 1998-7 I.R.B. 30 PDF, provides guidance concerning the last exception listed above. First, it states that section 6033(e) does not apply to organizations exempt under section 501(a), other than the following organizations: Social welfare organizations described in section 501(c)(4), other than veterans’ organizations. Agricultural and horticultural organizations described in section 501(c)(5) [Note: Section 6033(e) does not apply to labor organizations]. Organizations described in section 501(c)(6). For other organizations, Revenue Procedure 98-19 provides that section 6033(e) does not apply to: Section 501(c)(4) and section 501(c)(5) organizations that receive more than 90 percent of all annual dues from members in amounts less than $75 per member. Note: The $75 amount is increased for years after 1998 by a cost-of-living adjustment under section 1(f)(3), rounded to the next highest dollar. For tax years beginning in 2014, this amount is $110. Organizations that receive more than 90 percent of all annual dues from the following organizations: Section 501(c)(3) organizations; State or local government entities or entities whose income is excluded from tax under section 115; or Organizations exempt from tax under section 501(a) other than section 501(c)(4) social welfare organizations that are not veterans’ organizations, section 501(c)(5) agricultural or horticultural organizations, or section 501(c)(6) organizations. Organizations that establish that substantially all annual dues are not deductible without regard to section 162(e) in accordance with section 5.06 of Revenue Procedure 98‑19.