f1120pol U.S. Income Tax Return for Certain Political Organizations
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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 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 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 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 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 www.irs.gov/cdorders 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 www.irs.gov/efile 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 www.eftps.gov 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 Friday. 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 www.irs.gov 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 following. ● 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 $3. 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 and Payment ● 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 www.irs.gov/ 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 www.irs.gov. 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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