POLITICAL LAW ALERT: The Supreme Court decision in Citizens United v. FEC removes the legal prohibition on "independent expenditures" by corporations, but does not alter the legal ban on corporate contributions to federal candidates and party committees.
This outcome allows corporations to fund independent media communications (e.g., radio, tv, internet, mail) expressly advocating the election or defeat of candidates (i.e., "Vote for Smith," "Defeat Jones," etc.), but leaves in place the prohibitions against direct corporate contributions to candidates or party committees. Corporate sponsorship of such communications must be disclosed.
Accordingly, the decision does not immediately impact the use of corporate PACs to make federal campaign contributions, and does not otherwise impact the "soft money" limitations of the McCain-Feingold Act. Finally, we believe Congress is likely to explore avenues for limiting portions of this decision, and thus corporations--especially goverment contractors, foreign entities, and lobbyist employers--should remain watchful in the months ahead. Please contact Caplin & Drysdale's political activity law practice if you have any questions: Trevor Potter, Kirk L. Jowers, Joseph M. Birkenstock, Stacy Q. Cline, Matthew T. Sanderson, and Kristy Tsadick.
TAX ALERT- OFF SHORE ACCOUNTS: In light of recent developments involving UBS, Julius Baer, and other foreign financial institutions, and the John Doe summons served in connection with the Stanford investigation, any U.S. person with undeclared foreign accounts should seek counsel. Caplin & Drysdale attorneys have extensive experience in advising persons with undeclared offshore accounts and can assist in navigating the IRS Voluntary Disclosure Process, audits and investigations resulting from these accounts. For assistance, please contact one of our attorneys: Niles A. Elber, James N. Mastracchio, Scott D. Michel, Cono R. Namorato, Michael G. Pfeifer, Christopher S. Rizek, H. David Rosenbloom and Richard E. Timbie. |