IRS Form 1120-POL - 2009 by theyne


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

                                                                  for Certain Political Organizations
Department of the Treasury
Internal Revenue Service                                                                                                                                                              2009
For calendar year 2009 or other tax year beginning                                                                             , 2009, 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 page 5 of 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 on page 2.) .

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

              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

             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

                                   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 on page 4 for depository method of payment      24
             25        Overpayment. Subtract line 22 from line 23d             . . . . . . . . . . . . . . . . .                 25
                           1     At any time during the 2009 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

                                 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
Here                                                                                                                                                                      with the preparer shown below
                                                                                                                                                                          (see page 3)?     Yes       No
                          Signature of officer                                              Date                       Title
                            Preparer’s                                                                           Date                                                 Preparer’s SSN or PTIN
                                                                                                                                            Check if
Paid                        signature                                                                                                       self-employed
Preparer’s                  Firm’s name (or                                                                                                      EIN
Use Only                    yours if self-employed),
                            address, and ZIP code                                                                                                Phone no.
For Privacy Act and Paperwork Reduction Act Notice, see instructions on page 6.                                                              Cat. No. 11523K                  Form 1120-POL (2009)
Form 1120-POL (2009)                                                                                                               Page 2

Photographs of Missing                         ● Toll-free and email technical support.       Election Campaign Act of 1971 and
                                               ● The DVD is released twice during the         section 527(h).
Children                                       year.                                             If a candidate for U.S. Congress elects
The Internal Revenue Service is a proud           - The first release will ship the           to make a designation under section
partner with the National Center for              beginning of January 2010.                  527(h), he or she must designate the
Missing and Exploited Children.                                                               principal campaign committee by
Photographs of missing children                   - The final release will ship the
                                                  beginning of March 2010.                    attaching a copy of the Statement of
selected by the Center may appear in                                                          Candidacy to Form 1120-POL. This can
instructions on pages that would                  Purchase the DVD from the National          be either the Federal Election
otherwise be blank. You can help bring         Technical Information Service (NTIS) at        Commission’s Form 2 or an equivalent
these children home by looking at the for $30 (no               statement filed with the Federal Election
photographs and calling                        handling fee), or call 1-877-233-6767          Commission. The designation may also
1-800-THE-LOST (1-800-843-5678) if             toll free to purchase the DVD for $30          be made by attaching a signed
you recognize a child.                         (plus a $6 handling fee).                      statement with all of the following
                                               By phone and in person. You can order          information.
IRS E-Services Make Taxes                      forms and publications by calling              ● The candidate’s name and address,
Easier                                         1-800-TAX-FORM (1-800-829-3676).
                                               You can also get most forms and                ● The candidate’s identifying number,
Now more than ever before, certain             publications at your local IRS office.         ● The candidate’s party affiliation and
political organizations can enjoy the                                                         office sought,
benefits of meeting their federal tax filing   Section references are to the Internal         ● The district and state in which the
and payment responsibilities                   Revenue Code unless otherwise noted.           office is sought, and
electronically. Whether you rely on a tax                                                     ● The name and address of the principal
professional or do it yourself, IRS offers     General Instructions                           campaign committee.
you convenient programs to make it
easier.                                                                                       Note. If the candidate for U.S. Congress
                                               Purpose of Form                                has a designation in effect from an
   Spend less time and worry on taxes.                                                        earlier year, attach a copy of the earlier
Use e-file and Electronic Federal Tax          Political organizations and certain
                                               exempt organizations file Form 1120-           year’s designation to this year’s Form
Payment System (EFTPS) to your benefit:                                                       1120-POL and check the appropriate
                                               POL to report their political organization
● For e-file, visit for      taxable income and income tax liability        box on the form. See Regulations
additional information.                        under section 527.                             section 1.527-9. If a candidate for U.S.
● For EFTPS, visit or call                                                      Congress has only one political
EFTPS Customer Service at                      Phone Help                                     campaign committee, no designation is
1-800-555-4477.                                                                               required. However, be sure to check the
   Use the electronic options available        If you have questions and/or need help         appropriate box on Form 1120-POL.
from IRS and make filing and paying            completing Form 1120-POL, please call          2. Newsletter fund, if it is a fund
taxes easier.                                  1-877-829-5500. This toll-free telephone       established and maintained by an
                                               service is available Monday through            individual who holds, has been elected
How To Get Forms and                                                                          to, or is a candidate (as defined in
                                                                                              section 527(g)(3)) for nomination or
Publications                                   Who Must File                                  election to any federal, state, or local
Internet. You can access the IRS               A political organization, whether or not it    elective public office. The fund must be
website 24 hours a day, 7 days a week          is tax-exempt, must file Form 1120-POL         maintained exclusively for the
at to:                             if it has any political organization taxable   preparation and circulation of the
● Download forms, instructions, and            income.                                        individual’s newsletter.
publications.                                      An exempt organization that is not a       3. Separate segregated fund, if it is
● Order IRS products online.                   political organization must file Form          maintained by a section 501(c)
● Research your tax question online.           1120-POL if it is treated as having            organization (exempt from tax under
                                               political organization taxable income          section 501(a)). For more information,
● Search publications online by topic or                                                      see section 527(f)(3) and Regulations
keyword.                                       under section 527(f)(1).
                                                                                              section 1.527-6(f).
● View Internal Revenue Bulletins (IRBs)       Political Organizations
published in the last few years.               A political organization is a party,           Taxable Income
● Sign up to receive local and national        committee, association, fund (including a      Political organization taxable income
tax news by email.                             separate segregated fund described in          (line 19) is the excess of (a) gross
DVD for tax products. You can order            section 527(f)(3) set up by a section          income for the tax year (excluding
Pub.1796, IRS Tax Products DVD, and            501(c) organization), or other                 exempt function income (defined later))
obtain:                                        organization, organized and operated           over (b) deductions directly connected
● Current-year forms, instructions, and        primarily for the purpose of accepting         with the earning of gross income
publications.                                  contributions or making expenditures, or       (excluding exempt function income).
● Prior-year forms, instructions, and          both, to influence the selection,              Taxable income is figured with the
publications.                                  nomination, election, or appointment of        following adjustments.
                                               any individual to any public office or             1. A specific deduction of $100 is
● Tax Map: an electronic research tool         office in a political organization, or the
and finding aid.                                                                              allowed (but not for newsletter funds),
                                               election of Presidential or Vice
● Tax law frequently asked questions.          Presidential electors. Political                   2. The net operating loss deduction is
● Tax Topics from the IRS telephone            organizations include a:                       not allowed, and
response system.                                                                                  3. The dividends-received deduction
                                               1. Principal campaign committee, if it         and other special deductions for
● Internal Revenue Code – Title 26.            is the political committee designated by       corporations are not allowed. See
● Fill-in, print, and save features for most   a candidate for U.S. Congress as his or        section 527(c)(2)(C).
tax forms.                                     her principal campaign committee for
● Internal Revenue Bulletins.                  purposes of section 302(e) of the Federal
Form 1120-POL (2009)                                                                                                                Page 3

Effect of failure to file Form 8871.              2. The amount spent for an exempt          the preparer about math errors, offsets,
Unless excepted (see Other Reports and         function during the tax year either           and return preparation. The notices will
Returns That May Be Required), every           directly or indirectly through another        not be sent to the preparer.
political organization, in order to be         organization.                                    The organization is not authorizing the
considered a tax-exempt organization,          Net investment income, for this               paid preparer to receive any refund
must file Form 8871, Political                 purpose, is the excess of:                    check, bind the organization to anything
Organization Notice of Section 527                1. The gross amount of interest,           (including any additional tax liability), or
Status. An organization that is required       dividends, rents, and royalties, plus the     otherwise represent it before the IRS. If
to file Form 8871, but fails to file it when   excess, if any, of gains from the sale or     the organization wants to expand the
due, must include in taxable income for        exchange of assets, over the losses from      paid preparer’s authorization, see Pub.
the period before Form 8871 is filed, its      the sale or exchange of assets, over          947, Practice Before the IRS and Power
exempt function income (including                                                            of Attorney.
contributions received, membership                2. The deductions directly connected
dues, and political fundraising receipts),     with the production of this income.              However, the authorization will
minus any deductions directly connected           Taxable income is figured with the         automatically end no later than the due
with the production of that income. The        adjustments shown in 1, 2, and 3 under        date (excluding extensions) for filing the
organization may not deduct its exempt         Taxable Income on page 2.                     2010 tax return. If you want to revoke the
function expenditures because section                                                        authorization before it ends, see Pub.
162(e) denies a deduction for political        Who Must Sign                                 947.
campaign expenditures.                         The return must be signed and dated by:
                                                                                             When and Where To File
Exempt Function and Exempt                     ● The president, vice president,
                                               treasurer, assistant treasurer, chief         In general, an organization must file
Function Income                                accounting officer, or                        Form 1120-POL by the 15th day of the
The exempt function of a political             ● Any other officer (such as tax officer)     3rd month after the end of the tax year.
organization includes all activities that      authorized to sign.                              If the due date falls on a Saturday,
are related to and support the process of                                                    Sunday, or legal holiday, the
influencing or attempting to influence the        Receivers, trustees, and assignees
                                               must also sign and date any return filed      organization may file on the next
selection, nomination, election, or                                                          business day.
appointment of any individual to any           on behalf of an organization.
                                                  If an employee of the organization           File Form 1120-POL with the:
federal, state, or local public office, or
                                               completes Form 1120-POL, the paid                  Department of the Treasury
office of a political organization, or the
                                               preparer’s space should remain blank. In           Internal Revenue Service Center
election of Presidential or Vice
                                               addition, anyone who prepares Form                 Ogden, Utah 84201
Presidential electors, whether or not the
individuals or electors are selected,          1120-POL but does not charge the                 If the organization’s principal business,
nominated, elected, or appointed. The          organization should not complete that         office or agency is located in a foreign
term “exempt function” also means the          section. Generally, anyone who is paid to     country or a U.S. possession, the
making of expenditures relating to the         prepare the return must sign it and fill in   address for mailing their return should
individual’s office, once selected,            the Paid Preparer’s Use Only area.            be:
nominated, elected, or appointed, but             The paid preparer must complete the               Internal Revenue Service Center
only if the expenditures would be              required preparer information and:                   P.O. Box 409101
deductible by an individual under              ● Sign the return in the space provided              Ogden, UT 84409
section 162(a).                                for the preparer’s signature.                 Private delivery services. In addition to
   Exempt function income is the total of      ● Give a copy of the return to the            the United States mail, the organization
all amounts received from the following        taxpayer.                                     can use certain private delivery services
sources (to the extent that they are           Note. A paid preparer may sign original       designated by the IRS to meet the
separately segregated only for use for an      or amended returns by rubber stamp,           “timely mailing as timely filing/payment”
exempt function):                              mechanical device, or computer                rule for tax returns and payments. These
● Contributions of money and property;         software program.                             private delivery services include only the
● Membership dues, fees, or
assessments paid by a member of a              Paid Preparer Authorization                   ● DHL Express (DHL): DHL Same Day
political party;                               If the organization wants to allow the IRS    Service;
● Proceeds from a political fundraising or     to discuss its 2009 tax return with the       ● Federal Express (FedEx): FedEx
entertainment event, or from the sale of       paid preparer who signed it, check the        Priority Overnight, FedEx Standard
political campaign materials, if those         “Yes” box in the signature area of the        Overnight, FedEx 2Day, FedEx
amounts are not received in the active         return. This authorization applies only to    International Priority, and FedEx
conduct of a trade or business; and            the individual whose signature appears        International First; and
● Proceeds from the conduct of a bingo         in the Paid Preparer’s Use Only section       ● United Parcel Service (UPS): UPS Next
game, as described in section 513(f)(2).       of the return. It does not apply to the       Day Air, UPS Next Day Air Saver, UPS
                                               firm, if any, shown in that section.          2nd Day Air, UPS 2nd Day Air A.M., UPS
Specified Taxable Income                           If the “Yes” box is checked, the          Worldwide Express Plus, and UPS
Newsletter fund. Taxable income of a           organization is authorizing the IRS to call   Worldwide Express.
newsletter fund is figured in the same         the paid preparer to answer any                  The private delivery service can tell
manner as taxable income of a political        questions that may arise during the           you how to get written proof of the
organization except that the specific          processing of its return. The organization    mailing date.
deduction of $100 is not allowed.              is also authorizing the paid preparer to:
                                                                                             Extension. File Form 7004, Application
Exempt organization that is not a              ● Give the IRS any information that is        for Automatic Extension of Time To File
political organization. Taxable income         missing from its return,                      Certain Business Income Tax,
for an exempt organization described in        ● Call the IRS for information about the      Information, and Other Returns, to
section 501(c) that is not a political         processing of its return or the status of     request a 6-month extension of time to
organization is the smaller of:                any refund or payment(s), and                 file.
  1. The net investment income of the          ● Respond to certain IRS notices that
organization for the tax year, or              the organization may have shared with
Form 1120-POL (2009)                                                                                                           Page 4

Other Reports and Returns                     the organization’s books and records.        corporate income tax) using the
                                              Generally, permissible methods include:      Electronic Federal Tax Payment System
That May Be Required                                                                       (EFTPS) in 2010 if:
                                              ● Cash,
An organization that files Form 1120-                                                      ● The total deposits of such taxes in
POL may also be required to file the          ● Accrual, or
                                                                                           2008 were more than $200,000, or
following forms.                              ● Any other method authorized by the
                                              Internal Revenue Code.                       ● The organization was required to use
   1. Form 8871, Political Organization                                                    EFTPS in 2009.
Notice of Section 527 Status.                    In all cases, the method used must
                                              clearly show taxable income.                    If the organization is required to use
   Generally, in order to be tax-exempt, a                                                 EFTPS and fails to do so, it may be
political organization must file this form    Change in accounting method.                 subject to a 10% penalty. If the
within 24 hours of the date it is             Generally, the organization may only         organization is not required to use
established and within 30 days of any         change the method of accounting used         EFTPS, it may participate voluntarily. To
material change in the organization.          to report taxable income (for income as      enroll in or get more information about
However, do not file this form if the         a whole or for any material item) by         EFTPS, call 1-800-555-4477.
organization is:                              getting consent on Form 3115,
                                              Application for Change in Accounting         Depositing on time. For deposits made
● An organization that reasonably             Method. For more information, see Pub.       by EFTPS to be on time, the
expects its annual gross receipts to          538, Accounting Periods and Methods.         organization must initiate the transaction
always be less than $25,000,                                                               at least 1 business day before the date
● A political committee required to report    Accounting Period                            the deposit is due.
under the Federal Election Campaign Act
of 1971 (2 U.S.C. 431 et seq.),
                                              The organization must figure its taxable     Deposits With Form 8109
                                              income on the basis of a tax year. The       If the organization does not use EFTPS,
● A political committee of a state or         tax year is the annual accounting period
local candidate,                                                                           deposit organization income tax
                                              the organization uses to keep its records    payments with Form 8109, Federal Tax
● A state or local committee of a             and report its income and expenses if        Deposit Coupon Book. If you do not
political party, or                           that period is a calendar year or a fiscal   have a preprinted Form 8109, use Form
● A tax-exempt organization described         year. However, an organization that does     8109-B, Federal Tax Deposit Coupon to
in section 501(c) that is treated as          not keep books or does not have an           make deposits. You can get this form
having political organization taxable         annual accounting period must use the        only by calling 1-800-829-4933. Be sure
income under section 527(f)(1).               calendar year as its tax year. A new         to have your employer identification
                                              organization must adopt its tax year by      number (EIN) ready when you call.
   2. Form 8872, Political Organization       the due date (not including extensions)
Report of Contributions and                   of its first income tax return.                  Do not send deposits directly to an
Expenditures (periodic reports are                                                         IRS office; otherwise, the organization
required during the calendar year).           Change of tax year. After the                may have to pay a penalty. Mail or
                                              organization has adopted a tax year, it      deliver the completed Form 8109 with
   Generally, a political organization that   must get the consent of the IRS to
files Form 8871 and accepts a                                                              the payment to an authorized depositary,
                                              change its tax year by filing Form 1128,     that is, a commercial bank or other
contribution or makes an expenditure for      Application To Adopt, Change, or Retain
an exempt function during the calendar                                                     financial institution authorized to accept
                                              a Tax Year. See Regulations section          federal tax deposits.
year must file this form. However, this       1.442-1 and Pub. 538.
form is not required to be filed by an                                                         Make checks or money orders payable
organization excepted from filing Form        Rounding Off to Whole                        to the depositary. To help ensure proper
8871 (see above), or a qualified state or                                                  crediting, write the organization’s EIN,
local political organization (QSLPO) (see     Dollars                                      the tax period to which the deposit
the Instructions for Form 8871 and Rev.       The organization may round off cents to      applies, and “Form 1120-POL” on the
Rul. 2003-49, 2003-20 I.R.B. 903, for the     whole dollars on the return and              check or money order. Be sure to darken
definition of a QSLPO).                       accompanying schedules. If the               the “1120” box on the coupon. Records
   3. Form 990, Return of Organization        organization does round to whole             of these deposits will be sent to the IRS.
Exempt From Income Tax, or Form 990-          dollars, it must round all amounts. To           For more information on deposits, see
EZ, Short Form Return of Organization         round, drop amounts under 50 cents           the instructions in the coupon booklet
Exempt From Income Tax.                       and increase amounts from 50 to 99           (Form 8109) and Pub. 583, Starting a
                                              cents to the next dollar. For example,       Business and Keeping Records.
   An exempt political organization must
                                              $1.39 becomes $1 and $2.50 becomes
also file one of these forms if its annual                                                 Caution. If the organization owes tax
gross receipts are $25,000 or more                                                         when it files Form 1120-POL, do not
($100,000 or more for a QSLPO).                  If two or more amounts must be            include the payment with the tax return.
                                              added to figure the amount to enter on a     Instead, mail or deliver the payment with
   The following political organizations
                                              line, include cents when adding the          Form 8109 to an authorized depositary
are not required to file Form 990.
                                              amounts and round off only the total.        or use EFTPS, if applicable.
● Any political organization excepted
from the requirement to file Form 8871,       Depository Method of Tax                     Interest and Penalties
● Any caucus or association of state or                                                    Interest
local officials.                              The organization must pay the tax due in
                                              full no later than the 15th day of the 3rd   Interest is charged on taxes paid late
   See the instructions for Form 990 or       month after the end of the tax year. The     even if an extension of time to file is
Form 990-EZ.                                  two methods of depositing organization       granted. Interest is also charged on
                                              income taxes are discussed below.            penalties imposed for failure to file,
Accounting Methods                                                                         negligence, fraud, gross valuation
Figure taxable income using the method        Electronic Deposit Requirement               overstatements, and substantial
of accounting regularly used in keeping       The organization must make electronic        understatement of tax from the due date
                                              deposits of all depository taxes (such as    (including extensions) to the date of
                                              employment tax, excise tax, and              payment. The interest charge is figured
                                                                                           at a rate determined under section 6621.
Form 1120-POL (2009)                                                                                                             Page 5

Penalties                                     on the 2009 Form 1120-POL and take            connected with the production of
Penalties may be imposed if the               into account any tax law changes that         political organization taxable income. In
organization is required to file Form         are effective for tax years beginning after   those cases where expenses are
1120-POL and it fails to file the form by     December 31, 2009.                            attributable to the production of both
the due date. The following penalties         Address. Include the suite, room, or          exempt function income and political
may apply if the organization does not        other unit number after the street            organization taxable income, the
file its tax return by the due date,          address. If the Post Office does not          expenses should be allocated on a
including extensions.                         deliver mail to the street address and the    reasonable and consistent basis. Only
                                              organization has a P.O. box, show the         the portion allocable to the production of
Late filing of return. The organization                                                     political organization taxable income
may be charged a penalty of 5% of the         box number instead of the street
                                              address.                                      may be deducted. No deduction is
unpaid tax for each month or part of a                                                      allowed for general administrative or
month the return is late, up to a             Final return, name change, address            indirect expenses.
maximum of 25% of the unpaid tax. The         change, amended return. If the
minimum penalty for a return that is          organization ceases to exist, check the       Line 7. Other income and nonexempt
more than 60 days late is the smaller of      “Final return” box.                           function expenditures. Enter the
the tax due or $135. The penalty will not                                                   income from other sources, such as:
                                                 If the organization has changed its
be imposed if the organization can show       name since it last filed a return, check      ● Exempt function income that was not
that the failure to file on time was due to   the “Name change” box.                        properly segregated for exempt
reasonable cause. Organizations that file                                                   functions.
                                                 If the organization has changed its
late must attach a statement explaining                                                     ● Income received in the ordinary course
                                              address since it last filed a return, check
the reasonable cause.                                                                       of a trade or business.
                                              the “Address change” box.
Late payment of tax. An organization                                                        ● Ordinary income from the trade or
                                              Note. If a change in address occurs
that does not pay the tax when due                                                          business activities of a partnership
                                              after the return is filed, the organization
generally may have to pay a penalty of                                                      (from Schedule K-1 (Form 1065), Part III,
1/2 of 1% of the unpaid tax for each          should use Form 8822, Change of
                                              Address, to notify the IRS of the new         box 1).
month or part of a month the tax is not
                                              address.                                      ● Exempt function income (minus any
paid, up to a maximum of 25% of the
                                              Amended return. If you are filing an          deductions directly connected with the
unpaid tax. The penalty will not be
                                              amended Form 1120-POL:                        production of that income) taxable under
imposed if the organization can show
                                                                                            section 527(i)(4) for failure to timely file
that the failure to pay on time was due       ● Check the “Amended return” box,             Form 8871. Include amounts whether or
to reasonable cause.                          ● Complete the entire return,                 not segregated for use for an exempt
Other penalties. Other penalties can be       ● Correct the appropriate lines with the      function.
imposed for negligence, substantial           new information, and                             Also include on this line:
understatement of tax, and fraud. See
sections 6662 and 6663.                       ● Refigure the tax liability.                 ● Expenditures that were made from
                                                 Attach a sheet that explains the           exempt function income that were not
Assembling the Return                         reason for the amendments and                 for an exempt function and resulted in
                                              identifies the lines and amounts being        direct or indirect financial benefit to the
Attach Form 4136, Credit for Federal
                                              changed on the amended return.                political organization (see Regulations
Tax Paid on Fuels, after page 1 of Form
                                              Generally, the amended return must be         section 1.527-5 for examples) and
1120-POL. Attach schedules in
alphabetical order and other forms in         filed within 3 years after the date the       ● Illegal expenditures.
numerical order after Form 4136.              original return was due or 3 years after         Attach a schedule listing all income
                                              the date the organization filed it,           and expenditures included on line 7.
  Complete every applicable entry             whichever is later.
space on Form 1120-POL. Do not write                                                         Line 17. Taxable income before
“See attached” instead of completing          Employer identification number (EIN).         specific deduction of $100. Political
the entry spaces. If you need more            Enter the nine-digit EIN assigned to the      organizations, newsletter funds, and
space on the forms or schedules, attach       organization. If the organization does not    separate segregated funds compute
separate sheets using the same size and       have an EIN, it must apply for one. An        their tax by subtracting line 16 from line
format as on the printed forms. Show the      EIN can be applied for:                       8 and enter the result on line 17(c).
totals on the printed forms. Attach these     ● Online by clicking the Employer ID             Exempt organizations (section
separate sheets after all the schedules       Numbers (EINs) link at           501(c)) that are not political
and forms. Be sure to put the                 businesses/small. The EIN is issued           organizations. Complete lines 17a and
organization’s name and EIN on each           immediately once the application              17b if the organization made exempt
sheet.                                        information is validated.                     function expenditures that were not from
                                              ● By telephone at 1-800-829-4933.             a separate segregated fund. Enter on
Specific Instructions                            The online application process is not      line 17c the smaller of line 17a or 17b.
                                              yet available for organizations with          See Exempt organization that is not a
Period covered. File the 2009 return for                                                    political organization on page 3 for an
calendar year 2009 and fiscal years that      addresses in foreign countries.
                                                                                            explanation of the amounts to enter on
begin in 2009 and end in 2010. For a             If the organization has not received its   these lines.
fiscal year, fill in the tax year space at    EIN by the time the return is due, write
the top of the form.                          “Applied for” in the space provided for       Line 19. Taxable income. If the taxable
                                              the EIN. See Pub. 583 for details.            income on line 19 is zero or less, the
Note. The 2009 Form 1120-POL may                                                            Form 1120-POL is not required to be
also be used if:                              Income and deductions. Campaign               filed, but it may be filed to start the
● The organization has a tax year of less     contributions and other exempt function       statute of limitations period.
than 12 months that begins and ends in        income are generally not includible in
                                              income; likewise, campaign expenditures       Line 20. Income tax. The rate of tax
2010, and                                                                                   imposed depends on whether the
                                              and other exempt function expenditures
● The 2010 Form 1120-POL is not               are not deductible. To be deductible in       political organization is a principal
available at the time the organization is     computing political organization taxable      campaign committee as defined in
required to file its return. The              income, expenses must be directly             section 527(h). The tax rate is lower for a
organization must show its 2010 tax year                                                    principal campaign committee.
Form 1120-POL (2009)                                                                                                             Page 6

   Political organization not a principal      Enter the total amount of qualified         Note. An owner of a foreign trust must
campaign committee. An organization          credits on line 21 and attach the             ensure that the trust files an annual
that is not a principal campaign             applicable credit forms.                      information return on Form 3520-A,
committee computes its tax by                Line 22. Total tax. If the political          Annual Information Return of Foreign
multiplying line 19 by 35% and enters        organization must recapture any of the        Trust With a U.S. Owner. For details, see
the result on line 20.                       qualified electric vehicle credit, include    the instructions for Form 3520-A.
   Principal campaign committee              the amount of the recapture in the total      Question 3
(section 527(h)). A political organization   for line 22. On the dotted line next to the   In the space provided, show any tax-
that is a principal campaign committee       entry space, write “QEV recapture” and        exempt interest income received or
of a candidate for U.S. Congress             the amount. See Regulations section           accrued. Include any exempt-interest
computes its tax in the same manner as       1.30-1 for details on how to figure the       dividends received as a shareholder in a
provided in section 11(b) for                recapture.                                    mutual fund or other regulated
corporations. Compute the tax as                                                           investment company.
follows:                                     Additional Information
  1.   Enter taxable income (line
                                             Question 1                                    Privacy Act and Paperwork Reduction
       19, Form 1120-POL)      .                                                           Act Notice. We ask for the information
                                             Foreign financial accounts. Check the         on this form to carry out the Internal
  2.   Enter line 1 or $50,000,
       whichever is less . .
                                             “Yes” box if either 1 or 2 below applies      Revenue laws of the United States. You
                                             to the organization. Otherwise, check the     are required to give us the information.
  3.   Subtract line 2 from line 1           “No” box.                                     We need it to ensure that you are
  4.   Enter line 3 or $25,000,                 1. At any time during the 2009             complying with these laws and to allow
       whichever is less . .                 calendar year the organization had an         us to figure and collect the right amount
  5.   Subtract line 4 from line 3           interest in or signature or other authority   of tax. Section 6109 requires return
                                             over a bank, securities, or other financial   preparers to provide their identifying
  6.   Enter line 5 or $9,925,000,           account in a foreign country; and             numbers on the return.
       whichever is less . .
                                             ● The combined value of the accounts             You are not required to provide the
  7.   Subtract line 6 from line 5           was more than $10,000 at any time             information requested on a form that is
  8.   Multiply line 2 by 15% .              during the calendar year; and                 subject to the Paperwork Reduction Act
  9.   Multiply line 4 by 25% .              ● The account was not with a U.S.             unless the form displays a valid OMB
                                             military banking facility operated by a       control number. Books or records
 10.   Multiply line 6 by 34% .
                                             U.S. financial institution.                   relating to a form or its instructions must
 11.   Multiply line 7 by 35% .                                                            be retained as long as their contents
                                                2. The organization owns more than         may become material in the
 12.   If line 1 is greater than
       $100,000, enter the smaller
                                             50% of the stock in any corporation that      administration of any Internal Revenue
       of: 5% of taxable income              would answer “Yes” to item 1 above.           law. Generally, tax returns and return
       in excess of $100,000, or                See Form TD F 90-22.1, Report of           information are confidential, as required
       $11,750        . . . .                Foreign Bank and Financial Accounts, to       by section 6103.
 13.   If line 1 is greater than $15         find out if the organization is considered       The time needed to complete and file
       million, enter the smaller of:        to have an interest in or signature or        this form will vary depending on
       3% of taxable income in               other authority over a financial account      individual circumstances. The estimated
       excess of $15 million or              in a foreign country.                         average time is:
       $100,000 . . . .
                                                If “Yes” is checked for this question,     Recordkeeping .      .   .   17 hr., 13 min.
                                             file Form TD F 90-22.1 by June 30, 2010,
 14.   Add lines 8 through 13.
       Enter here and on line 20,
                                             with the Department of the Treasury at        Learning about the
       Form 1120-POL       . .               the address shown on the form. Do not         law or the form . .      .   . 5 hr., 15 min.
                                             attach it to Form 1120-POL.
Note. Estimated tax and alternative                                                        Preparing the form       .   . 2 hr., 17 min.
                                                You can get Form TD F 90-22.1 by
minimum tax do not apply to political        calling 1-800-TAX-FORM                        Copying, assembling,
organizations.                               (1-800-829-3676) or you can download it       and sending the form
Line 21. Tax credits. The organization       from the IRS website at          to the IRS . . . . . . 1 hr., 52 min.
may qualify for the following credits:          Also, if “Yes” is checked for this            If you have comments concerning the
● Foreign tax credit. See Form 1118,         question, enter the name of the foreign       accuracy of these time estimates or
Foreign Tax Credit—Corporations.             country or countries. Attach a separate       suggestions for making this form
                                             sheet if more space is needed.                simpler, we would be happy to hear
● Qualified electric vehicle credit. See                                                   from you. You can write to the:
Form 8834, Qualified Plug-in Electric and    Question 2                                    Internal Revenue Service
Electric Vehicle Credit, and section 30.                                                   Tax Products Coordinating Committee
                                             If you checked “Yes,” to Question 2, the
● General business credit (excluding                                                       SE:W:CAR:MP:T:T:SP
                                             organization may be required to file Form
the Indian employment credit, the work                                                     1111 Constitution Ave. NW, IR-6526
                                             3520, Annual Return To Report
opportunity credit, the welfare-to-work                                                    Washington, DC 20224
                                             Transactions With Foreign Trusts and
credit, the empowerment zone and                                                           Do not send the tax form to this address,
                                             Receipt of Certain Foreign Gifts. For
renewal community employment credit,                                                       see When and Where To File on page 3.
                                             details, see Form 3520.
the differential wage payment, and the
employee retention credit). See Form
3800, General Business Credit.

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