2011 DUES DEDUCTIBILITY: The Omnibus Budget Reconciliation Act (OBRA) of 1993 was amended by the Internal Revenue Code to disallow federal income tax deductibility for the portion of dues paid by association members for lobbying activities. It was estimated that up to 1% of your 2011 dues could possibly be used for lobbying.
The AANEM did incur actual lobbying expenses in 2011 of approximately 1%. Therefore, you may be able to deduct 99.0% of your 2011 dues as a business expense. Forward this information to your accountant. Since there is a substantial penalty for underestimating the percentage of lobbying, the AANEM estimates the percentage at 1% for 2012. At this time, we do not anticipate having a significant amount of lobbying in 2012. Due to the changing medical environment, however, it is difficult to anticipate what actions may be necessary next year. Notification will be sent to you at the end of 2012 regarding the actual nondeductible portion of your dues.