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US Income Tax Return for Certain Political Organizations

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									Form         1120-POL                                                  U.S. Income Tax Return                                                                                         OMB No. 1545-0129

Department of the Treasury
Internal Revenue Service
                                                                  for Certain Political Organizations                                                                                     2011
For calendar year 2011 or other tax year beginning                                                                               , 2011, and ending                                                     , 20
Check the box if this is a section 501(c) organization .                            .   .   .   .   .    .   .       .      .      . . . . . . .             .    .   .       .   .   .   .   .     .     ▶

Check if:                          Name of organization                                                                                  Employer identification number
         Final return
         Name change               Number, street, and room or suite no. (If a P.O. box, see instructions.)                                 Candidates for U.S. Congress Only
                                                                                                                                            If this is a principal campaign committee, and it is the
         Address change                                                                                                                     ONLY political committee, check here .       .    .    .
         Amended return            City or town, state, and ZIP code                                                                        If this is a principal campaign committee, but is NOT
                                                                                                                                            the only political committee, check here and attach a
                                                                                                                                            copy of designation (See instructions.)      .    .    .

              1        Dividends (attach schedule) . . . . . . . . . . . . . . . . . . . . . .                                                                    .       1
              2        Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                           .       2
              3        Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                          .       3
Income




              4        Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                        .       4
              5        Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . .                                                          .       5
              6        Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . .                                                   .       6
              7        Other income and nonexempt function expenditures (see instructions) . . . . . . . . .                                                      .       7
              8        Total income. Add lines 1 through 7 . . . . . . . . . . . . . . . . . . .                                                                  .       8
              9        Salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . .                                                                       .       9
             10        Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .                                                                      .       10
             11        Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                            .       11
             12        Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .                                                                       .       12
Deductions




             13        Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                           .       13
             14        Depreciation (attach Form 4562) . . . . . . . . . . . . . . . . . . . . .                                                                  .       14
             15        Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . .                                                                 .       15
             16        Total deductions. Add lines 9 through 15        . . . . . . . . . . . . . . . . .                                                          .       16
             17        Taxable income before specific deduction of $100 (see instructions). Section 501(c) organizations show:
                a      Amount of net investment income . . . . . . . . . . . . . ▶
                b      Aggregate amount expended for an exempt function (attach schedule) . . ▶                                                                           17c
             18        Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g)) . .                                             .        18
             19        Taxable income. Subtract line 18 from line 17c. (If line 19 is zero or less, see the instructions.)                                   .    .        19
             20        Income tax. (see instructions) . . . . . . . . . . . . . . . . . . . .                                                                .    .        20
             21        Tax credits. (Attach the applicable credit forms.) (see instructions) . . . . . . . . .                                               .    .        21
             22        Total tax. Subtract line 21 from line 20 . . . . . . . . . . . . . . . . . .                                                          .    .        22
             23        Payments: a Tax deposited with Form 7004 . . . . . . . .                            23a
Tax




                                   b Credit for tax paid on undistributed capital gains (attach Form 2439) 23b
                                   c Credit for federal tax on fuels (attach Form 4136) . . .              23c
                                   d Total payments. Add lines 23a through 23c . . . . . . . . . . .                            23d                          .    .
             24        Tax due. Subtract line 23d from line 22. See instructions for depository method of payment .              24                          .    .
             25        Overpayment. Subtract line 22 from line 23d             . . . . . . . . . . . . . . .                     25                          .    .
                           1     At any time during the 2011 calendar year, did the organization have an interest in or a signature or
                                 other authority over a financial account (such as a bank account, securities account, or other financial
                                 account) in a foreign country? (see instructions) . . . . . . . . . . . . . . . . .                                                                          Yes              No
       Information
        Additional




                                 If “Yes,” enter the name of the foreign country ▶
                           2     During the tax year, did the organization receive a distribution from, or was it the grantor of, or transferor
                                 to, a foreign trust? If “Yes,” the organization may have to file Form 3520 . . . . . . . . . .                                                               Yes              No
                           3     Enter the amount of tax-exempt interest received or accrued during the tax year . . . ▶                                                  $
                           4     Date organization formed ▶
                           5a    The books are in care of ▶                                   b Enter name of candidate ▶
                             c   The books are located at ▶                                   d Telephone No. ▶
                     Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
Sign                 correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
                                                                                                                                                                          May the IRS discuss this return with
Here                                                                                                                                                                      the preparer shown below (see
                     ▲




                                                                                                                 ▲




                                                                                                                                                                          instructions)?       Yes         No
                          Signature of officer                                              Date                         Title
                           Print/Type preparer’s name                          Preparer's signature                                      Date                     Check     if  PTIN
Paid                                                                                                                                                              self-employed
Preparer
                           Firm’s name                                                                                                                            Firm's EIN ▶
Use Only
                                             ▶

                           Firm's address    ▶                                                                                                                    Phone no.
For Paperwork Reduction Act Notice, see instructions.                                                                     Cat. No. 11523K                                         Form 1120-POL (2011)
Form 1120-POL (2011)                                                                                                              Page 2

Section references are to the Internal         • The candidate’s name and address,            exempt function income (including
Revenue Code unless otherwise noted.           • The candidate’s identifying number,          contributions received, membership
                                                                                              dues, and political fundraising receipts),
                                               • The candidate’s party affiliation and
General Instructions                           office sought,
                                                                                              minus any deductions directly connected
                                                                                              with the production of that income. The
Purpose of Form                                • The district and state in which the          organization may not deduct its exempt
                                               office is sought, and                          function expenditures because section
Political organizations and certain                                                           162(e) denies a deduction for political
exempt organizations file Form 1120-           • The name and address of the principal
                                               campaign committee.                            campaign expenditures.
POL to report their political organization
taxable income and income tax liability        Note. If the candidate for U.S. Congress       Exempt Function and Exempt
under section 527.                             has a designation in effect from an            Function Income
                                               earlier year, attach a copy of the earlier
Phone Help                                     year’s designation to this year’s Form         The exempt function of a political
                                               1120-POL and check the appropriate             organization includes all activities that
If you have questions and/or need help                                                        are related to and support the process of
completing Form 1120-POL, please call          box on the form. See Regulations
                                               section 1.527-9. If a candidate for U.S.       influencing or attempting to influence the
1-877-829-5500. This toll-free telephone                                                      selection, nomination, election, or
service is available Monday through            Congress has only one political
                                               campaign committee, no designation is          appointment of any individual to any
Friday.                                                                                       federal, state, or local public office, or
                                               required. However, be sure to check the
                                                                                              office of a political organization, or the
Who Must File                                  appropriate box on Form 1120-POL.
                                                                                              election of Presidential or Vice
A political organization, whether or not it    2. Newsletter fund, if it is a fund            Presidential electors, whether or not the
is tax-exempt, must file Form 1120-POL         established and maintained by an               individuals or electors are selected,
if it has any political organization taxable   individual who holds, has been elected         nominated, elected, or appointed. The
income.                                        to, or is a candidate (as defined in           term “exempt function” also means the
                                               section 527(g)(3)) for nomination or           making of expenditures relating to the
    An exempt organization that is not a
                                               election to any federal, state, or local       individual’s office, once selected,
political organization must file Form
                                               elective public office. The fund must be       nominated, elected, or appointed, but
1120-POL if it is treated as having
                                               maintained exclusively for the                 only if the expenditures would be
political organization taxable income
                                               preparation and circulation of the             deductible by an individual under
under section 527(f)(1).
                                               individual’s newsletter.                       section 162(a).
Political Organizations                        3. Separate segregated fund, if it is             Exempt function income is the total of
A political organization is a party,           maintained by a section 501(c)                 all amounts received from the following
committee, association, fund (including a      organization (exempt from tax under            sources (to the extent that they are
separate segregated fund described in          section 501(a)). For more information,         separately segregated only for use for an
section 527(f)(3) set up by a section          see section 527(f)(3) and Regulations          exempt function):
501(c) organization), or other                 section 1.527-6(f).                            • Contributions of money and property;
organization, organized and operated
primarily for the purpose of accepting         Taxable Income                                 • Membership dues, fees, or
                                                                                              assessments paid by a member of a
contributions or making expenditures, or       Political organization taxable income          political party;
both, to influence the selection,              (line 19) is the excess of (a) gross
nomination, election, or appointment of                                                       • Proceeds from a political fundraising or
                                               income for the tax year (excluding
any individual to any public office or                                                        entertainment event, or from the sale of
                                               exempt function income (defined later))
office in a political organization, or the                                                    political campaign materials, if those
                                               over (b) deductions directly connected
election of Presidential or Vice                                                              amounts are not received in the active
                                               with the earning of gross income
Presidential electors. Political                                                              conduct of a trade or business; and
                                               (excluding exempt function income).
organizations include a:                       Taxable income is figured with the             • Proceeds from the conduct of a bingo
                                               following adjustments.                         game, as described in section 513(f)(2).
1. Principal campaign committee, if it
is the political committee designated by           1. A specific deduction of $100 is         Specified Taxable Income
a candidate for U.S. Congress as his or        allowed (but not for newsletter funds),        Newsletter fund. Taxable income of a
her principal campaign committee for               2. The net operating loss deduction is     newsletter fund is figured in the same
purposes of section 302(e) of the Federal      not allowed, and                               manner as taxable income of a political
Election Campaign Act of 1971 and
                                                   3. The dividends-received deduction        organization except that the specific
section 527(h).
                                               and other special deductions for               deduction of $100 is not allowed.
   If a candidate for U.S. Congress elects     corporations are not allowed. See              Exempt organization that is not a
to make a designation under section            section 527(c)(2)(C).                          political organization. Taxable income
527(h), he or she must designate the                                                          for an exempt organization described in
principal campaign committee by                Effect of failure to file Form 8871.
                                               Unless excepted (see Other Reports and         section 501(c) that is not a political
attaching a copy of the Statement of                                                          organization is the smaller of:
Candidacy to Form 1120-POL. This can           Returns That May Be Required), every
be either the Federal Election                 political organization, in order to be
Commission’s Form 2 or an equivalent           considered a tax-exempt organization,
statement filed with the Federal Election      must file Form 8871, Political
Commission. The designation may also           Organization Notice of Section 527
be made by attaching a signed                  Status. An organization that is required
statement with all of the following            to file Form 8871, but fails to file it when
information.                                   due, must include in taxable income for
                                               the period before Form 8871 is filed, its
Form 1120-POL (2011)                                                                                                               Page 3

   1. The net investment income of the          • Give the IRS any information that is            The private delivery service can tell
organization for the tax year, or               missing from its return,                       you how to get written proof of the
   2. The amount spent for an exempt            • Call the IRS for information about the       mailing date.
function during the tax year either             processing of its return or the status of      Extension. File Form 7004, Application
directly or indirectly through another          any refund or payment(s), and                  for Automatic Extension of Time To File
organization.                                   • Respond to certain IRS notices that the      Certain Business Income Tax,
Net investment income, for this                 organization may have shared with the          Information, and Other Returns, to
purpose, is the excess of:                      preparer about math errors, offsets, and       request a 6-month extension of time to
                                                return preparation. The notices will not       file.
   1. The gross amount of interest,
                                                be sent to the preparer.
dividends, rents, and royalties, plus the                                                      Other Reports and Returns
excess, if any, of gains from the sale or          The organization is not authorizing the
exchange of assets, over the losses from        paid preparer to receive any refund            That May Be Required
the sale or exchange of assets, over            check, bind the organization to anything       An organization that files Form 1120-
   2. The deductions directly connected         (including any additional tax liability), or   POL may also be required to file the
with the production of this income.             otherwise represent it before the IRS. If      following forms.
                                                the organization wants to expand the              1. Form 8871, Political Organization
   Taxable income is figured with the           paid preparer’s authorization, see Pub.
adjustments shown in 1, 2, and 3 under                                                         Notice of Section 527 Status.
                                                947, Practice Before the IRS and Power
Taxable Income, earlier.                        of Attorney.                                      Generally, in order to be tax-exempt, a
                                                                                               political organization must file this form
Who Must Sign                                      However, the authorization will             within 24 hours of the date it is
                                                automatically end no later than the due        established and within 30 days of any
The return must be signed and dated by:         date (excluding extensions) for filing the     material change in the organization.
• The president, vice president,                2012 tax return. If you want to revoke the     However, do not file this form if the
treasurer, assistant treasurer, chief           authorization before it ends, see Pub.         organization is:
accounting officer, or                          947.
                                                                                               • An organization that reasonably
• Any other officer (such as tax officer)
authorized to sign.                             When and Where To File                         expects its annual gross receipts to
                                                                                               always be less than $25,000,
   Receivers, trustees, and assignees           In general, an organization must file
                                                Form 1120-POL by the 15th day of the           • A political committee required to report
must also sign and date any return filed                                                       under the Federal Election Campaign Act
on behalf of an organization.                   3rd month after the end of the tax year.
                                                                                               of 1971 (2 U.S.C. 431 et seq.),
   If an employee of the organization              If the due date falls on a Saturday,
                                                Sunday, or legal holiday, the                  • A political committee of a state or
completes Form 1120-POL, the Paid                                                              local candidate,
Preparer Use Only area should remain            organization may file on the next
blank. In addition, anyone who prepares         business day.                                  • A state or local committee of a
Form 1120-POL but does not charge the              File Form 1120-POL with the:                political party, or
organization should not complete that                     Department of the Treasury           • A tax-exempt organization described
section. Generally, anyone who is paid to                 Internal Revenue Service Center      in section 501(c) that is treated as
prepare the return must sign it and fill in               Ogden, UT 84201                      having political organization taxable
the Paid Preparer Use Only area.                   If the organization’s principal business,   income under section 527(f)(1).
   The paid preparer must complete the          office or agency is located in a foreign          2. Form 8872, Political Organization
required preparer information and:              country or a U.S. possession, the              Report of Contributions and
• Sign the return in the space provided         address for mailing their return should        Expenditures (periodic reports are
for the preparer’s signature.                   be:                                            required during the calendar year).
• Give a copy of the return to the                     Internal Revenue Service Center            Generally, a political organization that
taxpayer.                                              P.O. Box 409101                         files Form 8871 and accepts a
                                                       Ogden, UT 84409                         contribution or makes an expenditure for
Note. A paid preparer may sign original                                                        an exempt function during the calendar
or amended returns by rubber stamp,             Private delivery services. In addition to
                                                the United States mail, the organization       year must file this form. However, this
mechanical device, or computer                                                                 form is not required to be filed by an
software program. Also, facsimile               can use certain private delivery services
                                                designated by the IRS to meet the              organization excepted from filing Form
signatures are authorized.                                                                     8871 (see above), or a qualified state or
                                                “timely mailing as timely filing/payment”
Paid Preparer Authorization                     rule for tax returns and payments. These       local political organization (QSLPO) (see
                                                private delivery services include only the     the Instructions for Form 8871 and Rev.
If the organization wants to allow the IRS                                                     Rul. 2003-49, 2003-20 I.R.B. 903, for the
                                                following.
to discuss its 2011 tax return with the                                                        definition of a QSLPO).
paid preparer who signed it, check the          • DHL Express (DHL): DHL Same Day
                                                Service;                                          3. Form 990, Return of Organization
“Yes” box in the signature area of the                                                         Exempt From Income Tax, or Form 990-
return. This authorization applies only to      • Federal Express (FedEx): FedEx               EZ, Short Form Return of Organization
the individual whose signature appears          Priority Overnight, FedEx Standard             Exempt From Income Tax.
in the Paid Preparer Use Only section of        Overnight, FedEx 2Day, FedEx
the return. It does not apply to the firm, if   International Priority, and FedEx                 An exempt political organization must
any, shown in that section.                     International First; and                       also file one of these forms if its annual
                                                                                               gross receipts are $25,000 or more
    If the “Yes” box is checked, the            • United Parcel Service (UPS): UPS Next        ($100,000 or more for a QSLPO).
organization is authorizing the IRS to call     Day Air, UPS Next Day Air Saver, UPS
the paid preparer to answer any                 2nd Day Air, UPS 2nd Day Air A.M., UPS
questions that may arise during the             Worldwide Express Plus, and UPS
processing of its return. The organization      Worldwide Express.
is also authorizing the paid preparer to:
Form 1120-POL (2011)                                                                                                           Page 4

   The following political organizations        If two or more amounts must be            may apply if the organization does not
are not required to file Form 990.           added to figure the amount to enter on a     file its tax return by the due date,
• Any political organization excepted        line, include cents when adding the          including extensions.
from the requirement to file Form 8871,      amounts and round off only the total.        Late filing of return. The organization
and                                                                                       may be charged a penalty of 5% of the
                                             Depository Method of Tax                     unpaid tax for each month or part of a
• Any caucus or association of state or
local officials.                             Payment                                      month the return is late, up to a
                                             The organization must pay the tax due in     maximum of 25% of the unpaid tax. The
   See the instructions for Form 990 or                                                   minimum penalty for a return that is
Form 990-EZ.                                 full no later than the 15th day of the 3rd
                                             month after the end of the tax year. The     more than 60 days late is the smaller of
Accounting Methods                           two methods of depositing organization       the tax due or $135. The penalty will not
                                             income taxes are discussed below.            be imposed if the organization can show
Figure taxable income using the method                                                    that the failure to file on time was due to
of accounting regularly used in keeping      Electronic Deposit Requirement               reasonable cause. Organizations that file
the organization’s books and records.        The IRS has issued final regulations         late must attach a statement explaining
Generally, permissible methods include:      under section 6302 that provide              the reasonable cause.
• Cash,                                      beginning January 1, 2011, the               Late payment of tax. An organization
• Accrual, or                                organization must deposit all depository     that does not pay the tax when due
                                             taxes (such as employment tax, excise        generally may have to pay a penalty of
• Any other method authorized by the         tax, and corporate income tax)               1/2 of 1% of the unpaid tax for each
Internal Revenue Code.                       electronically using the Electronic          month or part of a month the tax is not
   In all cases, the method used must        Federal Tax Payment System (EFTPS).          paid, up to a maximum of 25% of the
clearly show taxable income.                 Under these final regulations, Forms         unpaid tax. The penalty will not be
Change in accounting method.                 8109 and 8109-B, Federal Tax Deposit         imposed if the organization can show
Generally, the organization may only         Coupon, cannot be used after December        that the failure to pay on time was due
change the method of accounting used         31, 2010. For more information about         to reasonable cause.
to report taxable income (for income as      EFTPS or to enroll in EFTPS, visit the       Other penalties. Other penalties can be
a whole or for any material item) by         EFTPS website at www.eftps.gov, or call      imposed for negligence, substantial
getting consent on Form 3115,                1-800-555-4477. You can also get Pub.        understatement of tax, and fraud. See
Application for Change in Accounting         966, The Secure Way to Pay Your              sections 6662 and 6663.
Method. For more information, see Pub.       Federal Taxes.
538, Accounting Periods and Methods.         Depositing on time. For deposits made        Assembling the Return
                                             by EFTPS to be on time, the                  Attach Form 4136, Credit for Federal
Accounting Period                            organization must initiate the deposit by    Tax Paid on Fuels, after page 1 of Form
The organization must figure its taxable     8 p.m. Eastern time the day before the       1120-POL. Attach schedules in
income on the basis of a tax year. The       date the deposit is due. If the              alphabetical order and other forms in
tax year is the annual accounting period     organization uses a third party to make      numerical order after Form 4136.
the organization uses to keep its records    deposits on its behalf, they may have
                                             different cutoff times.                        Complete every applicable entry
and report its income and expenses if
                                                                                          space on Form 1120-POL. Do not write
that period is a calendar year or a fiscal      For more information on deposits, see     “See attached” instead of completing
year. However, an organization that does     Pub. 583, Starting a Business and            the entry spaces. If you need more
not keep books or does not have an           Keeping Records.                             space on the forms or schedules, attach
annual accounting period must use the
                                                      If the organization owes tax        separate sheets using the same size and
calendar year as its tax year. A new
organization must adopt its tax year by
the due date (not including extensions)
of its first income tax return.
                                             ▲
                                             !
                                             CAUTION
                                                      when it files Form 1120-POL,
                                                      do not include the payment
                                                      with the tax return. Instead,
                                                                                          format as on the printed forms. Show the
                                                                                          totals on the printed forms. Attach these
                                                                                          separate sheets after all the schedules
                                             use EFTPS.                                   and forms. Be sure to put the
Change of tax year. After the                                                             organization’s name and EIN on each
organization has adopted a tax year, it      Interest and Penalties                       sheet.
must get the consent of the IRS to
change its tax year by filing Form 1128,     Interest
Application To Adopt, Change, or Retain      Interest is charged on taxes paid late       Specific Instructions
a Tax Year. See Regulations section          even if an extension of time to file is      Period covered. File the 2011 return for
1.442-1 and Pub. 538.                        granted. Interest is also charged on         calendar year 2011 and fiscal years that
                                             penalties imposed for failure to file,       begin in 2011 and end in 2012. For a
Rounding Off to Whole                        negligence, fraud, gross valuation           fiscal year, fill in the tax year space at
Dollars                                      overstatements, and substantial              the top of the form.
The organization may round off cents to      understatement of tax from the due date      Note. The 2011 Form 1120-POL may
whole dollars on the return and              (including extensions) to the date of        also be used if:
accompanying schedules. If the               payment. The interest charge is figured
                                             at a rate determined under section 6621.     • The organization has a tax year of less
organization does round to whole                                                          than 12 months that begins and ends in
dollars, it must round all amounts. To       Penalties                                    2012, and
round, drop amounts under 50 cents
and increase amounts from 50 to 99           Penalties may be imposed if the              • The 2012 Form 1120-POL is not
cents to the next dollar. For example,       organization is required to file Form        available at the time the organization is
$1.39 becomes $1 and $2.50 becomes           1120-POL and it fails to file the form by    required to file its return. The
$3.                                          the due date. The following penalties        organization must show its 2012 tax year
Form 1120-POL (2011)                                                                                                                  Page 5

on the 2011 Form 1120-POL and take            are not deductible. To be deductible in        Line 19. Taxable income. If the taxable
into account any tax law changes that         computing political organization taxable       income on line 19 is zero or less, the
are effective for tax years beginning after   income, expenses must be directly              Form 1120-POL is not required to be
December 31, 2011.                            connected with the production of               filed, but it may be filed to start the
Address. Include the suite, room, or          political organization taxable income. In      statute of limitations period.
other unit number after the street            those cases where expenses are                 Line 20. Income tax. The rate of tax
address. If the Post Office does not          attributable to the production of both         imposed depends on whether the
deliver mail to the street address and the    exempt function income and political           political organization is a principal
organization has a P.O. box, show the         organization taxable income, the               campaign committee as defined in
box number instead of the street              expenses should be allocated on a              section 527(h). The tax rate is lower for a
address.                                      reasonable and consistent basis. Only          principal campaign committee.
                                              the portion allocable to the production of
Final return, name change, address                                                              Political organization not a principal
                                              political organization taxable income
change, amended return. If the                                                               campaign committee. An organization
                                              may be deducted. No deduction is
organization ceases to exist, check the                                                      that is not a principal campaign
                                              allowed for general administrative or
“Final return” box.                                                                          committee computes its tax by
                                              indirect expenses.
   If the organization has changed its                                                       multiplying line 19 by 35% and enters
                                              Line 7. Other income and nonexempt             the result on line 20.
name since it last filed a return, check
                                              function expenditures. Enter the
the “Name change” box.                                                                          Principal campaign committee
                                              income from other sources, such as:
   If the organization has changed its                                                       (section 527(h)). A political organization
                                              • Exempt function income that was not          that is a principal campaign committee
address since it last filed a return, check
                                              properly segregated for exempt                 of a candidate for U.S. Congress
the “Address change” box.
                                              functions.                                     computes its tax in the same manner as
Note. If a change in address occurs
                                              • Income received in the ordinary course       provided in section 11(b) for
after the return is filed, the organization
                                              of a trade or business.                        corporations. Compute the tax as
should use Form 8822, Change of
                                              • Ordinary income from the trade or            follows:
Address, to notify the IRS of the new
address.                                      business activities of a partnership             1.   Enter taxable income (line
                                              (from Schedule K-1 (Form 1065), Part III,             19, Form 1120-POL) . .
Amended return. If you are filing an
                                              box 1).                                          2.   Enter line 1 or $50,000,
amended Form 1120-POL:
                                              • Exempt function income (minus any                   whichever is less . .         .
• Check the “Amended return” box,
                                              deductions directly connected with the           3.   Subtract line 2 from line 1
• Complete the entire return,                 production of that income) taxable under         4.   Enter line 3 or $25,000,
• Correct the appropriate lines with the      section 527(i)(4) for failure to timely file          whichever is less . .         .
new information, and                          Form 8871. Include amounts whether or            5.   Subtract line 4 from line 3
• Refigure the tax liability.                 not segregated for use for an exempt
                                                                                               6.   Enter line 5 or $9,925,000,
                                              function.                                             whichever is less . . .
   Attach a sheet that explains the
reason for the amendments and                    Also include on this line:                    7.   Subtract line 6 from line 5
identifies the lines and amounts being        • Expenditures that were made from               8.   Multiply line 2 by 15% .      .
changed on the amended return.                exempt function income that were not
                                                                                               9.   Multiply line 4 by 25% .      .
Generally, the amended return must be         for an exempt function and resulted in
                                              direct or indirect financial benefit to the     10.   Multiply line 6 by 34% .      .
filed within 3 years after the date the
original return was due or 3 years after      political organization (see Regulations         11.   Multiply line 7 by 35% .      .
the date the organization filed it,           section 1.527-5 for examples) and               12.   If line 1 is greater than
whichever is later.                           • Illegal expenditures.                               $100,000, enter the smaller
                                                                                                    of: 5% of taxable income
Employer identification number (EIN).            Attach a schedule listing all income               in excess of $100,000, or
Enter the nine-digit EIN assigned to the      and expenditures included on line 7.                  $11,750       . . . . .
organization. If the organization does not
                                              Line 17. Taxable income before                  13.   If line 1 is greater than $15
have an EIN, it must apply for one. An                                                              million, enter the smaller of:
                                              specific deduction of $100. Political
EIN can be applied for:                                                                             3% of taxable income in
                                              organizations, newsletter funds, and                  excess of $15 million or
• Online by clicking the Employer ID          separate segregated funds compute                     $100,000 . . . . .
Numbers (EINs) link at www.irs.gov/           their tax by subtracting line 16 from line
businesses/small. The EIN is issued                                                           14.   Add lines 8 through 13.
                                              8 and enter the result on line 17(c).
                                                                                                    Enter here and on line 20,
immediately once the application
                                                 Exempt organizations (section                      Form 1120-POL . . .
information is validated.
                                              501(c)) that are not political                 Note. Estimated tax and alternative
• By telephone at 1-800-829-4933.             organizations. Complete lines 17a and          minimum tax do not apply to political
   The online application process is not      17b if the organization made exempt            organizations.
yet available for organizations with          function expenditures that were not from
addresses in foreign countries.               a separate segregated fund. Enter on
   If the organization has not received its   line 17c the smaller of line 17a or 17b.
EIN by the time the return is due, write      See Exempt organization that is not a
“Applied for” in the space provided for       political organization, earlier, for an
the EIN. See Pub. 583 for details.            explanation of the amounts to enter on
                                              these lines.
Income and deductions. Campaign
contributions and other exempt function
income are generally not includible in
income; likewise, campaign expenditures
and other exempt function expenditures
Form 1120-POL (2011)                                                                                                           Page 6

Line 21. Tax credits. The organization           2. The organization owns more than        Paperwork Reduction Act Notice. We
may qualify for the following credits:        50% of the stock in any corporation that     ask for the information on this form to
• Foreign tax credit. See Form 1118,          would answer “Yes” to item 1 above.          carry out the Internal Revenue laws of
Foreign Tax Credit—Corporations.                 See Form TD F 90-22.1, Report of          the United States. You are required to
                                              Foreign Bank and Financial Accounts, to      give us the information. We need it to
• Qualified electric vehicle credit. See                                                   ensure that you are complying with these
Form 8834, Qualified Plug-in Electric and     find out if the organization is considered
                                              to have an interest in or signature or       laws and to allow us to figure and collect
Electric Vehicle Credit, and section 30.                                                   the right amount of tax.
                                              other authority over a financial account
• General business credit (excluding          in a foreign country.                           You are not required to provide the
the small employer health insurance                                                        information requested on a form that is
premium credit, the Indian employment            If “Yes” is checked for this question,
                                              file Form TD F 90-22.1 by June 30, 2012,     subject to the Paperwork Reduction Act
credit, the work opportunity credit, the                                                   unless the form displays a valid OMB
welfare-to-work credit, the                   with the Department of the Treasury at
                                              the address shown on the form. Do not        control number. Books or records
empowerment zone and renewal                                                               relating to a form or its instructions must
community employment credit, the              attach it to Form 1120-POL.
                                                                                           be retained as long as their contents
differential wage payment, and the               If the due date falls on Saturday,        may become material in the
employee retention credit). See Form          Sunday, or legal holiday, the                administration of any Internal Revenue
3800, General Business Credit.                organization must file on the next           law. Generally, tax returns and return
   Enter the total amount of qualified        business day.                                information are confidential, as required
credits on line 21 and attach the                You can get Form TD F 90-22.1 by          by section 6103.
applicable credit forms.                      calling 1-800-TAX-FORM                          The time needed to complete and file
Line 22. Total tax. If the political          (1-800-829-3676) or you can download it      this form will vary depending on
organization must recapture any of the        from IRS.gov.                                individual circumstances. The estimated
qualified electric vehicle credit, include       Also, if “Yes” is checked for this        average time is:
the amount of the recapture in the total      question, enter the name of the foreign      Recordkeeping . . . 17 hr., 13 min.
for line 22. On the dotted line next to the   country or countries. Attach a separate
entry space, write “QEV recapture” and        sheet if more space is needed.               Learning about the
the amount. See Regulations section                                                        law or the form . . . . 5 hr., 15 min.
1.30-1 for details on how to figure the       Question 2                                   Preparing the form. . 12 hr., 17 min.
recapture.                                    If you checked “Yes,” to Question 2, the     Copying, assembling,
                                              organization may be required to file Form    and sending the form
Additional Information                        3520, Annual Return To Report                to the IRS . . . . . . 1 hr., 52 min.
                                              Transactions With Foreign Trusts and
Question 1                                    Receipt of Certain Foreign Gifts. For           If you have comments concerning the
Foreign financial accounts. Check the         details, see Form 3520.                      accuracy of these time estimates or
“Yes” box if either 1 or 2 below applies                                                   suggestions for making this form
                                              Note. An owner of a foreign trust must       simpler, we would be happy to hear
to the organization. Otherwise, check the     ensure that the trust files an annual
“No” box.                                                                                  from you. You can write to:
                                              information return on Form 3520-A,
   1. At any time during the 2011             Annual Information Return of Foreign            Internal Revenue Service
calendar year the organization had an         Trust With a U.S. Owner. For details, see       Tax Products Coordinating Committee
interest in or signature or other authority   the instructions for Form 3520-A.               SE:W:CAR:MP:T:T:SP
over a bank, securities, or other financial                                                   1111 Constitution Ave. NW, IR-6526
account in a foreign country;                 Question 3                                      Washington, DC 20224
• The combined value of the accounts          In the space provided, show any tax-            Do not send the tax form to this
was more than $10,000 at any time             exempt interest income received or           address, see When and Where To File on
during the calendar year; and                 accrued. Include any exempt-interest         page 3.
                                              dividends received as a shareholder in a
• The account was not with a U.S.             mutual fund or other regulated
military banking facility operated by a       investment company.
U.S. financial institution.

								
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