Taxation with Representation v. United States

The appellant, Taxation With Representation, Inc., (TWR), filed this action for the refund of $378.29 paid with respect to the tax periods 1973-1975 under the Federal Unemployment Tax Act (FUTA). The complaint alleged that TWR is an educational or charitable organization under Section 501(c)(3) of the Internal Revenue Code of 19541 and, accordingly, is exempt from FUTA taxes under Section 3306(c)(8) of the Code. In seeking the refund, the sole issue raised by TWR is the constitutionality of the restriction on lobbying contained in Section 501(c)(3). TWR charges that such a proscription violates its rights of free speech and petition under the First Amendment and denies it the equal protection of the law under the Fifth Amendment. The district court granted the Government's motion for summary judgment and ordered the case dismissed. TWR has appealed. TWR was incorporated under the District of Columbia Non-profit Corporation Act on July 14, 1970, and its purposes and powers were stated in the articles of incorporation, in part, as follows: