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INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
Section 162(e)(1) provides that the deduction allowed by
section 162(a) shall include all the ordinary and necessary
expenses paid or incurred in carrying on a trade or business in
direct connection with appearances before or communications with
legislative bodies with respect to legislation or proposed
legislation related to a taxpayer's business. Cloud v.
Commissioner, 97 T.C. 613, 624 (1991). Section 162(e)(2),
however, does not allow any deduction under section 162(a) for
any amount paid or incurred by way of contribution, gift, or
otherwise which would be used in any political campaign on behalf
of any candidate for public office, regardless of business
purpose. Id. at 625.
Petitioners argue that we should apply section 162(e) as
amended by the Omnibus Budget Reconciliation Act of 1993, Pub. L.
103-66, sec. 13222, 107 Stat. 312, 477. In particular,
petitioners argue that the current section 162(e)(5)(A) provides
that professional lobbyists, i.e., individuals who are in the
trade or business of lobbying, may deduct political contributions
under section 162(a). We need not address petitioners' argument
regarding the current section 162(e)(5)(A), since Congress
expressly provided that the section was to be effective only for
amounts paid or incurred after December 31, 1993.
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