While the Internal Revenue Service (IRS) still has not issued general guidance on how tax applies to exempt organizations' use of the Internet, a new rule on links for corporate sponsors may provide a clue on what direction the IRS will take. Final regulations on corporate sponsorship became effective on April 25, and they govern when a nonprofit must pay taxes on income from sponsors. The new rule states that a link to a sponsor's website is a non-taxable acknowledgement unless it contains an endorsement of the sponsor's products. This approach is similar to final rules proposed by the Federal Election Commission (FEC), which do not consider links to candidate sites to be endorsements or contributions to a candidate unless there is language in the link urging web visitors to support or oppose the candidate. However, IRS attorney Judith Kindell told a Georgetown Univiersity Law Center conference on nonprofits that the IRS will not necessarily take the same approach to issues as the FEC does. She said the IRS is still reviewing issues on nonprofits and the Internet, especially uses that involve election campaigns and legislative lobbying. There is no projected date for IRS guidance in these areas. OMB Watch submitted comments to the IRS last year when it requested input on how tax rules for nonprofits should be applied to the Internet. Read OMB Watch comments.