Form 1120-POL U.S. Income Tax Return for Certain Political Organizatio

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 1 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

Date

1120-POL

Date

Revised proofs
requested

OMB No. 1545-0129

U.S. Income Tax Return
for Certain Political Organizations

Department of the Treasury
Internal Revenue Service

Signature

O.K. to print

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

2005

For calendar year 2005 or other tax year beginning
, 2005, and ending
Check the box if this is a section 501(c) organization or a separate segregated fund described in section 527(f)(3)
Check if:

, 20

.
䊳

Name of organization

Employer identification number

Number, street, and room or suite no. (If a P.O. box, see page 5 of instructions.)

Candidates for U.S. Congress Only

City or town, state, and ZIP code

If this is a principal campaign committee, and it is the
ONLY political committee, check here
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.)

Final return
Name change
Address change
Amended return

Tax

Deductions

Income

1
2
3
4
5
6
7
8

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Dividends (attach schedule)
Interest
Gross rents
Gross royalties
Capital gain net income (attach Schedule D (Form 1120))
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income and nonexempt function expenditures (see instructions)
Total income. Add lines 1 through 7

9
10
11
12
13
14
15
16
17

Salaries and wages
Repairs and maintenance
Rents
Taxes and licenses
Interest
Depreciation (attach Form 4562)
Other deductions (attach schedule)
Total deductions. Add lines 9 through 15
Taxable income before specific deduction of $100 (see instructions). Section 501(c) organizations show:
䊳
a Amount of net investment income
䊳
b Aggregate amount expended for an exempt function (attach schedule)
18 Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g))
19
20
21
22
23

24
25

Taxable income. Subtract line 18 from line 17c. (If line 19 is zero or less, see the instructions.)
Income tax. (See instructions)
Tax credits. (Attach the applicable credit forms.) (See instructions)
Total tax. Subtract line 21 from line 20
23a
Payments: a Tax deposited with Form 7004
23b
b Credit for tax paid on undistributed capital gains (attach Form 2439)
23c
c Credit for Federal tax on fuels (attach Form 4136)
d Total. Add lines 23a through 23c
Tax due. Subtract line 23d from line 22. See instructions on page 4 for depository method of payment
Overpayment. Subtract line 22 from line 23d

Additional
Information

1

Sign
Here

2

17c
18
19
20
21
22

23d
24
25

At any time during the 2005 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)
If “Yes,” enter the name of the foreign country 䊳

Yes

No

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
$
䊳
Enter the amount of tax-exempt interest received or accrued during the tax year

Yes

No

3
4 Date organization formed
5a The books are in care of
c The books are located at

䊳
䊳

b Enter name of candidate
d Telephone No. 䊳

䊳

䊳

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,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

䊳

Paid
Preparer’s
Use Only

Signature of officer
Preparer’s
signature

䊳

Firm’s name (or
yours if self-employed),
address, and ZIP code

Date

䊳

May the IRS discuss this return
with the preparer shown below
(see page 3)?
Yes
No

Title
Date

䊳

For Privacy Act and Paperwork Reduction Act Notice, see instructions on page 6.

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.
Cat. No. 11523K

(

)
Form

1120-POL

(2005)

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 2 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216mm (8 ⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-POL (2005)

Photographs of Missing
Children
The Internal Revenue Service is a proud
partner with the National Center for
Missing and Exploited Children.
Photographs of missing children
selected by the Center may appear in
instructions on pages that would
otherwise be blank. You can help bring
these children home by looking at the
photographs and calling
1-800-THE-LOST (1-800-843-5678) if
you recognize a child.

IRS E-Services Make Taxes
Easier
Now more than ever before, certain
political organizations can enjoy the
benefits of meeting their federal tax filing
and payment responsibilities
electronically. Whether you rely on a tax
professional or do it yourself, IRS offers
you convenient programs to make it
easier.
Spend less time and worry on taxes.
Use e-file and Electronic Federal Tax
Payment System (EFTPS) to your benefit:
● For e-file, visit www.irs.gov/efile for
additional information.
● For EFTPS, visit www.eftps.gov or call
EFTPS Customer Service at
1-800-555-4477.
Use the electronic options available
from IRS and make filing and paying
taxes easier.

How To Get Forms and
Publications
Internet. You can access the IRS
website 24 hours a day, 7 days a week
at www.irs.gov to:
● Download forms, instructions, and
publications.
● Order IRS products online.
● See answers to frequently asked tax
questions.
● Search publications online by topic or
keyword.
● Send us comments or request help by
email, and
● Sign up to receive local and national
tax news by email.
CD-ROM. Order Pub. 1796, IRS Tax
Products on CD, and get:
● A CD that is released twice so you
have the latest products. The first
release ships in late December and the
final release ships in late February.
● Current year forms, instructions, and
publications.
● Prior year forms, instructions, and
publications.
● Tax Map: an electronic research tool
and finding aid.
● Tax law and frequently asked
questions (FAQs).

Page

● Tax topics from the IRS telephone
response system.
● Fill-in, print and save features for most
tax forms.
● Internal Revenue Bulletins.
● Toll-free and email technical support.
Buy the CD-ROM on the Internet at
www.irs.gov/cdorders from the National
Technical Information Service (NTIS) for
$25, shipping and handling included, or
call 1-877-CDFORMS (1-877-233-6767)
toll free to buy the CD-ROM for $25 (plus
a $5 handling fee).
By phone and in person. You can order
forms and publications by calling
1-800-TAX-FORM (1-800-829-3676). You
can also get most forms and
publications at your local IRS office.

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A political organization, whether or not it
is tax-exempt, must file Form 1120-POL
if it has any political organization taxable
income.
An exempt organization that is not a
political organization must file Form
1120-POL if it is treated as having
political organization taxable income
under section 527(f)(1).

be either the Federal Election
Commission’s Form 2 or an equivalent
statement filed with the Federal Election
Commission. The designation may also
be made by attaching a signed statement
with all of the following information:
● The candidate’s name and address.
● The candidate’s identifying number.
● The candidate’s party affiliation and
office sought.
● The district and state in which the
office is sought, and
● The name and address of the principal
campaign committee.
Note. If the candidate for U.S. Congress
has a designation in effect from an
earlier year, attach a copy of the earlier
year’s designation to this year’s Form
1120-POL and check the appropriate
box on the form. See Regulations
section 1.527-9. If a candidate for U.S.
Congress has only one political
campaign committee, no designation is
required. However, be sure to check the
appropriate box on Form 1120-POL.
2. Newsletter fund, if it is a fund
established and maintained by an
individual who holds, has been elected
to, or is a candidate (as defined in
section 527(g)(3)) for nomination or
election to any federal, state, or local
elective public office. The fund must be
maintained exclusively for the
preparation and circulation of the
individual’s newsletter.
3. Separate segregated fund, if it is
maintained by a section 501(c)
organization (exempt from tax under
section 501(a)). For more information,
see section 527(f)(3) and Regulations
section 1.527-6(f).

Political Organizations

Taxable Income

A political organization is a party,
committee, association, fund (including a
separate segregated fund described in
section 527(f)(3) set up by a section
501(c) organization), or other
organization, organized and operated
primarily for the purpose of accepting
contributions or making expenditures, or
both, to influence the selection,
nomination, election, or appointment of
any individual to any public office or
office in a political organization, or the
election of Presidential or Vice
Presidential electors. Political
organizations include a:
1. Principal campaign committee, if it
is the political committee designated by
a candidate for U.S. Congress as his or
her principal campaign committee for
purposes of section 302(e) of the
Federal Election Campaign Act of 1971
and section 527(h).
If a candidate for U.S. Congress elects
to make a designation under section
527(h), he or she must designate the
principal campaign committee by
attaching a copy of the Statement of
Candidacy to Form 1120-POL. This can

Political organization taxable income
(line 19) is the excess of (a) gross
income for the tax year (excluding
exempt function income (defined below))
over (b) deductions directly connected
with the earning of gross income
(excluding exempt function income).
Taxable income is figured with the
following adjustments:
1. A specific deduction of $100 is
allowed (but not for newsletter funds).
2. The net operating loss deduction is
not allowed, and
3. The dividends-received deduction
and other special deductions for
corporations are not allowed. See section
527(c)(2)(C).
Effect of failure to file Form 8871.
Unless excepted (see below), every
political organization in order to be
considered a tax-exempt organization,
must file Form 8871, Political
Organization Notice of Section 527
Status. An organization that is required
to file Form 8871, but fails to file it when
due, must include in taxable income for
the period before Form 8871 is filed, its

General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.

Purpose of Form
Political organizations and certain
exempt organizations file Form
1120-POL to report their political
organization taxable income and income
tax liability under section 527.

Who Must File

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 3 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-POL (2005)

exempt function income (including
contributions received, membership
dues, and political fundraising receipts),
minus any deductions directly connected
with the production of that income. The
organization may not deduct its exempt
function expenditures because section
162(e) denies a deduction for political
campaign expenditures.

Exempt Function and Exempt
Function Income
The exempt function of a political
organization includes all activities that are
related to and support the process of
influencing or attempting to influence the
selection, nomination, election, or
appointment of any individual to any
federal, state, or local public office, or
office of a political organization, or the
election of Presidential or Vice Presidential
electors, whether or not the individuals or
electors are selected, nominated, elected,
or appointed. The term “exempt function”
also means the making of expenditures
relating to the individual’s office, once
selected, nominated, elected, or
appointed, but only if the expenditures
would be deductible by an individual
under section 162(a).
Exempt function income is the total of
all amounts received from the following
sources (to the extent that they are
separately segregated only for use for an
exempt function):
● Contributions of money and property.
● Membership dues, fees, or
assessments paid by a member of a
political party.
● Proceeds from a political fundraising
or entertainment event, or from the sale
of political campaign materials, if those
amounts are not received in the active
conduct of a trade or business, and
● Proceeds from the conduct of a bingo
game, as described in section 513(f)(2).

Specified Taxable Income
Newsletter fund. Taxable income of a
newsletter fund is figured in the same
manner as taxable income of a political
organization except that the specific
deduction of $100 is not allowed.
Exempt organization that is not a
political organization. Taxable income
for an exempt organization described in
section 501(c) that is not a political
organization is the smaller of:
1. The net investment income of the
organization for the tax year, or
2. The amount spent for an exempt
function during the tax year either
directly or indirectly through another
organization.
Net investment income, for this
purpose, is the excess of:
1. The gross amount of interest,
dividends, rents, and royalties, plus the
excess, if any, of gains from the sale or
exchange of assets, over the losses from
the sale or exchange of assets, over

Page

2. The deductions directly connected
with the production of this income.
Taxable income is figured with the
adjustments shown in 1, 2, and 3 on
page 2.

Who Must Sign
The return must be signed and dated by:
● The president, vice president,
treasurer, assistant treasurer, chief
accounting officer, or
● Any other officer (such as tax officer)
authorized to sign.
Receivers, trustees, and assignees
must also sign and date any return filed
on behalf of an organization.
If an employee of the organization
completes Form 1120-POL, the paid
preparer’s space should remain blank. In
addition, anyone who prepares Form
1120-POL but does not charge the
organization should not complete that
section. Generally, anyone who is paid
to prepare the return must sign it and fill
in the Paid Preparer’s Use Only area.
The paid preparer must complete the
required preparer information and:
● Sign the return in the space provided
for the preparer’s signature.
● Give a copy of the return to the
taxpayer.
Note. A paid preparer may sign original
or amended returns by rubber stamp,
mechanical device, or computer
software program.

Paid Preparer Authorization
If the organization wants to allow the IRS
to discuss its 2005 tax return with the
paid preparer who signed it, check the
“Yes” box in the signature area of the
return. This authorization applies only to
the individual whose signature appears in
the Paid Preparer’s Use Only section of
the return. It does not apply to the firm,
if any, shown in that section.
If the “Yes” box is checked, the
organization is authorizing the IRS to call
the paid preparer to answer any
questions that may arise during the
processing of its return. The organization
is also authorizing the paid preparer to:
● Give the IRS any information that is
missing from its return,
● Call the IRS for information about the
processing of its return or the status of
any refund or payment(s), and
● Respond to certain IRS notices that
the organization may have shared with
the preparer about math errors, offsets,
and return preparation. The notices will
not be sent to the preparer.
The organization is not authorizing the
paid preparer to receive any refund
check, bind the organization to anything
(including any additional tax liability), or
otherwise represent it before the IRS. If
the organization wants to expand the

3

paid preparer’s authorization, see Pub.
947, Practice Before the IRS and Power
of Attorney.
However, the authorization will
automatically end no later than the due
date (excluding extensions) for filing the
2006 tax return. If you want to revoke
the authorization before it ends, see
Pub. 947.

When and Where To File
In general, an organization must file
Form 1120-POL by the 15th day of the
3rd month after the end of the tax year.
If the due date falls on a Saturday,
Sunday, or legal holiday, the
organization may file on the next
business day.
File Form 1120-POL with the Internal
Revenue Service Center, Ogden, UT
84201.
Private delivery services. In addition to
the United States mail, the organization
can use certain private delivery services
designated by the IRS to meet the
“timely mailing as timely filing/payment”
rule for tax returns and payments. These
private delivery services include only the
following:
● DHL Express (DHL): DHL Same Day
Service, DHL Next Day 10:30 am, DHL
Next Day 12:00 pm, DHL Next Day
3:00 pm, and DHL 2nd Day Service.
● Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, and FedEx
International First, and
● United Parcel Service (UPS): UPS
Next Day Air, UPS Next Day Air Saver,
UPS 2nd Day Air, UPS 2nd Day Air
A.M., UPS Worldwide Express Plus, and
UPS Worldwide Express.
The private delivery service can tell
you how to get written proof of the
mailing date.
If you use a private delivery service,
use the following address for filing the
return.
Internal Revenue Service
1973 N. Rulon White Blvd.
Ogden, UT 84404
Extension. File Form 7004, Application
for Automatic Extension of Time To File
Corporation Income Tax Return, to
request a 6-month extension of time to
file.

Other Reports and Returns
That May Be Required
An organization that files Form
1120-POL may also be required to file
the following forms:
1. Form 8871, Political Organization
Notice of Section 527 Status.
Generally, in order to be tax-exempt, a
political organization must file this form
within 24 hours of the date it is
established and within 30 days of any

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 4 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-POL (2005)

Page

material change in the organization.
However, do not file this form if the
organization is:
● An organization that reasonably
expects its annual gross receipts to
always be less than $25,000,
● A political committee required to report
under the Federal Election Campaign Act
of 1971 (2 U.S.C. 431 et seq.),
● A political committee of a state or
local candidate,
● A state or local committee of a
political party, or
● A tax-exempt organization described
in section 501(c) that is treated as
having political organization taxable
income under section 527(f)(1).
2. Form 8872, Political Organization
Report of Contributions and
Expenditures (periodic reports are
required during the calendar year).
Generally, a political organization that
files Form 8871 and accepts a
contribution or makes an expenditure for
an exempt function during the calendar
year must file this form. However, this
form is not required to be filed by an
organization excepted from filing Form
8871 (see above), or a qualified state or
local political organization (QSLPO) (see
the instructions for Form 8871 and Rev.
Rul. 2003-49, 2003-20 I.R.B. 903, for the
definition of a QSLPO).
3. Form 990, Return of Organization
Exempt From Income Tax, or Form
990-EZ, Short Form Return of
Organization Exempt From Income Tax.
An exempt political organization must
also file one of these forms if its annual
gross receipts are $25,000 or more
($100,000 or more for a QSLPO).
The following political organizations
are not required to file Form 990:
● Any political organization excepted
from the requirement to file Form 8871,
and
● Any caucus or association of state or
local officials.
See the Instructions for Form 990 and
Form 990-EZ.

performance, (b) payment is due, or (c)
payment is received, and
● The amount can be determined with
reasonable accuracy.
See Regulations section 1.451-1(a) for
details.
Generally, an accrual basis taxpayer
can deduct accrued expenses in the tax
year when:
● All events that determine the liability
have occurred,
● The amount of the liability can be
figured with reasonable accuracy, and
● Economic performance takes place
with respect to the expense.
There are exceptions to the economic
performance rule for certain items,
including recurring expenses. See
section 461(h) and the related
regulations for the rules for determining
when economic performance takes
place.
Generally, the organization may only
change the method of accounting used
to report taxable income (for income as
a whole or for any material item) by
getting consent on Form 3115,
Application for Change in Accounting
Method. For more information, get Pub.
538, Accounting Periods and Methods.

Accounting Methods

Rounding Off to Whole
Dollars

Figure taxable income using the method
of accounting regularly used in keeping
the organization’s books and records.
Permissible methods include:
● Cash,
● Accrual, or
● Any other method authorized by the
Internal Revenue Code.
In all cases, the method used must
clearly show taxable income.
Under the accrual method, an amount
is includible in income when:
● All the events have occurred that fix
the right to receive the income, which is
the earliest of the date: (a) payment is
earned through the required

Accounting Periods
The organization must figure its taxable
income on the basis of a tax year. The
tax year is the annual accounting period
the organization uses to keep its records
and report its income and expenses if
that period is a calendar year or a fiscal
year. However, an organization that does
not keep books or does not have an
annual accounting period must use the
calendar year as its tax year. A new
organization must adopt its tax year by
the due date (not including extensions) of
its first income tax return. After the
organization has adopted a tax year, it
must get the consent of the IRS to
change its tax year by filing Form 1128,
Application To Adopt, Change, or Retain
a Tax Year. See Regulations section
1.442-1 and Pub. 538.

The organization may round off cents to
whole dollars on the return and
accompanying schedules. To round,
drop amounts under 50 cents and
increase amounts from 50 cents to 99
cents to the next dollar.

Depository Method of Tax
Payment
The organization must pay the tax due in
full no later than the 15th day of the 3rd
month after the end of the tax year. The
two methods of depositing organization
income taxes are discussed below.

4

Electronic Deposit Requirement
The organization must make electronic
deposits of all depository taxes (such as
employment tax, excise tax, and
corporate income tax) using the
Electronic Federal Tax Payment System
(EFTPS) in 2006 if:
● The total deposits of such taxes in
2004 were more than $200,000, or
● The organization was required to use
EFTPS in 2005.
If the organization is required to use
EFTPS and fails to do so, it may be
subject to a 10% penalty. If the
organization is not required to use
EFTPS, it may participate voluntarily. To
enroll in or get more information about
EFTPS, call 1-800-555-4477.
Depositing on time. For deposits made
by EFTPS to be on time, the
organization must initiate the transaction
at least 1 business day before the date
the deposit is due.

Deposits With Form 8109
If the organization does not use EFTPS,
deposit organization income tax
payments with Form 8109, Federal Tax
Deposit Coupon. If you do not have a
preprinted Form 8109, use Form 8109-B
to make deposits. You can get this form
only by calling 1-800-829-4933. Be sure
to have your employer identification
number (EIN) ready when you call.
Do not send deposits directly to an
IRS office; otherwise, the organization
may have to pay a penalty. Mail or
deliver the completed Form 8109 with
the payment to an authorized depositary,
that is, a commercial bank or other
financial institution authorized to accept
Federal tax deposits.
Make checks or money orders payable
to the depositary. To help ensure proper
crediting, write the organization’s EIN, the
tax period to which the deposit applies,
and “Form 1120-POL” on the check or
money order. Be sure to darken the “1120”
box on the coupon. Records of these
deposits will be sent to the IRS.
For more information on deposits, see
the instructions in the coupon booklet
(Form 8109) and Pub. 583, Starting a
Business and Keeping Records.
Caution. If the organization owes tax
when it files Form 1120-POL, do not
include the payment with the tax return.
Instead, mail or deliver the payment with
Form 8109 to an authorized depositary
or use EFTPS, if applicable.

Interest and Penalties
Interest
Interest is charged on taxes paid late
even if an extension of time to file is
granted. Interest is also charged on
penalties imposed for failure to file,
negligence, fraud, gross valuation
overstatements, and substantial
understatement of tax from the due date

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 5 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-POL (2005)

(including extensions) to the date of
payment. The interest charge is figured
at a rate determined under section 6621.

Penalties
Penalties may be imposed if the
organization is required to file Form
1120-POL and it fails to file the form by
the due date.
Penalties for late filing of return. The
following penalties may apply if the
organization does not file its tax return
by the due date, including extensions.
● The organization may be charged a
penalty of 5% of the unpaid tax for each
month or part of a month the return is
late, up to a maximum of 25% of the
unpaid tax. The minimum penalty for a
return that is more than 60 days late is
the smaller of the tax due or $100. The
penalty will not be imposed if the
organization can show that the failure to
file on time was due to reasonable
cause. Organizations that file late must
attach a statement explaining the
reasonable cause.
Penalty for late payment of tax. An
organization that does not pay the tax
when due generally may have to pay a
penalty of 1⁄2 of 1% of the unpaid tax for
each month or part of a month the tax is
not paid, up to a maximum of 25% of
the unpaid tax. The penalty will not be
imposed if the organization can show
that the failure to pay on time was due
to reasonable cause.
Other penalties. Other penalties can be
imposed for negligence, substantial
understatement of tax, and fraud. See
sections 6662 and 6663.

Assembling the Return
Attach Form 4136, Credit for Federal
Tax Paid on Fuels, after page 1 of Form
1120-POL. Attach schedules in
alphabetical order and other forms in
numerical order after Form 4136.
Complete every applicable entry space
on Form 1120-POL. Do not write “See
attached” instead of completing the
entry spaces. If you need more space on
the forms or schedules, attach separate
sheets using the same size and format
as on the printed forms. Show the totals
on the printed forms. Attach these
separate sheets after all the schedules
and forms. Be sure to put the
organization’s name and EIN on each
sheet.

Specific Instructions
Period covered. File the 2005 return for
calendar year 2005 and fiscal years that
begin in 2005 and end in 2006. For a
fiscal year, fill in the tax year space at
the top of the form.
Note. The 2005 Form 1120-POL may
also be used if:
● The organization has a tax year of less
than 12 months that begins and ends in
2006, and

Page

● The 2006 Form 1120-POL is not
available at the time the organization is
required to file its return. The
organization must show its 2006 tax year
on the 2005 Form 1120-POL and take
into account any tax law changes that are
effective for tax years beginning after
December 31, 2005.
Address. Include the suite, room, or
other unit number after the street
address. If the Post Office does not
deliver mail to the street address and
the organization has a P.O. box, show
the box number instead of the street
address.
Final return, name change, address
change, amended return. If the
organization ceases to exist, check the
“Final return” box.
If the organization has changed its
name since it last filed a return, check
the “Name change” box.
If the organization has changed its
address since it last filed a return, check
the “Address change” box.
Note. If a change in address occurs after
the return is filed, the organization
should use Form 8822, Change of
Address, to notify the IRS of the new
address.
Amended return. If you are filing an
amended Form 1120-POL:
● Check the “Amended return” box,
● Complete the entire return,
● Correct the appropriate lines with the
new information, and
● Refigure the tax liability.
Attach a sheet that explains the
reason for the amendments and
identifies the lines and amounts being
changed on the amended return.
Generally, the amended return must be
filed within 3 years after the date the
original return was due or 3 years after
the date the organization filed it,
whichever is later.
Employer identification number (EIN).
Enter the nine-digit EIN assigned to the
organization. If the organization does not
have an EIN, it must apply for one. An
EIN can be applied for:
● Online by clicking the Employer ID
Numbers (EINs) link at
www.irs.gov/businesses/small. The EIN is
issued immediately once the application
information is validated.
● By telephone at 1-800-829-4933 from
7:00 a.m. to 10:00 p.m. in the
employer’s local time zone.
The online application process is not
yet available for corporations with
addresses in foreign countries or Puerto
Rico.
If the organization has not received its
EIN by the time the return is due, write
“Applied for” in the space provided for
the EIN. See Pub. 583 for details.

5

Income and deductions. Campaign
contributions and other exempt function
income are not includible in income;
likewise, campaign expenditures and
other exempt function expenditures are
not deductible. Generally, to be
deductible in computing political
organization taxable income, expenses
must be directly connected with the
production of political organization
taxable income. In those cases where
expenses are attributable to the
production of both exempt function
income and political organization taxable
income, the expenses should be
allocated on a reasonable and consistent
basis. Only the portion allocable to the
production of political organization
taxable income may be deducted. No
deduction is allowed for general
administrative or indirect expenses.
Line 7—Other income and nonexempt
function expenditures. Enter the
income from other sources, such as:
● Exempt function income that was not
properly segregated for exempt
functions.
● Income received in the ordinary course
of a trade or business.
● Ordinary income from the trade or
business activities of a partnership (from
Schedule K-1 (Form 1065), box 1).
● Exempt function income (minus any
deductions directly connected with the
production of that income) taxable under
section 527(i)(4) for failure to timely file
Form 8871. Include amounts whether or
not segregated for use for an exempt
function.
Also include on this line:
● Expenditures that were made from
exempt function income that were not
for an exempt function and resulted in
direct or indirect financial benefit to the
political organization (see Regulations
section 1.527-5 for examples), and
● Illegal expenditures.
Attach a schedule listing all income
and expenditures included on line 7.
Line 17—Taxable income before
specific deduction of $100. Political
organizations, newsletter funds, and
separate segregated funds: Subtract line
16 from line 8 and enter the result on
line 17(c).
Exempt organizations (section
501(c)) that are not political
organizations. Complete lines 17a and
17b if the organization made exempt
function expenditures that were not from
a separate segregated fund. Enter on
line 17c the smaller of line 17a or 17b.
See Exempt organization that is not a
political organization on page 3 for an
explanation of the amounts to enter on
these lines.
Line 19—Taxable income. Do not file
Form 1120-POL if the taxable income on
line 19 is zero or less.

4
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-POL, PAGE 6 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄2 ")
559mm (22") FOLD TO: 216mm (81⁄2 ")
279mm (11")
PERFORATE: ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-POL (2005)

Line 20—Income tax. The rate of tax
imposed depends on whether the
political organization is a principal
campaign committee as defined in
section 527(h). The tax rate is lower for a
principal campaign committee.
Political organization not a principal
campaign committee. An organization
that is not a principal campaign
committee computes its tax as follows:
Multiply line 19 by 35% and enter the
result on line 20.
Principal campaign committee
(section 527(h)). A political organization
that is a principal campaign committee
of a candidate for U.S. Congress
computes its tax in the same manner as
provided in section 11(b) for
corporations. Compute the tax as
follows:
1. Enter taxable income (line 19,
Form 1120-POL)
2. Enter line 1 or $50,000,
whichever is less
3. Subtract line 2 from line 1
4. Enter line 3 or $25,000,
whichever is less
5. Subtract line 4 from line 3
6. Enter line 5 or $9,925,000,
whichever is less
7. Subtract line 6 from line 5
8. Multiply line 2 by 15%
9. Multiply line 4 by 25%
10. Multiply line 6 by 34%
11. Multiply line 7 by 35%
12. If line 1 is greater than
$100,000, enter the smaller of:
5% of taxable income in
excess of $100,000, or
$11,750
13. If line 1 is greater than $15
million, enter the smaller of:
3% of taxable income in
excess of $15 million or
$100,000
14. Add lines 8 through 13. Enter
here and on line 20, Form
1120-POL

Note. Estimated tax and alternative
minimum tax do not apply to political
organizations.
Line 21—Tax credits. The organization
may qualify for the following credits:
● Foreign tax credit. See Form 1118,
Foreign Tax Credit—Corporations.
● Credit for fuel produced from a
nonconventional source. Use Form
8907, Nonconventional Source Fuel
Credit, to claim a credit for the sale of
qualified fuels produced from a
nonconventional source. Section 29
contains a definition of qualified fuels,
provisions for figuring the credit, and
other special rules. Attach a separate
schedule to the return showing the
computation of the credit.

Page

6

● Qualified electric vehicle credit. See
Form 8834, Qualified Electric Vehicle
Credit, and section 30.
● General business credit (excluding
the Indian employment credit, the work
opportunity credit, the welfare-to-work
credit, and the empowerment zone and
renewal community employment credit).
See Form 3800, General Business
Credit.
Enter the total amount of qualified
credits on line 21 and attach the
applicable credit forms.
Line 22—Total tax. If the political
organization must recapture any of the
qualified electric vehicle credit, include
the amount of the recapture in the total
for line 22. On the dotted line next to the
entry space, write “QEV recapture” and
the amount. See Regulations section
1.30-1 for details on how to figure the
recapture.

Question 2

Additional Information

Privacy Act and Paperwork Reduction
Act Notice. We ask for the information
on this form to carry out the Internal
Revenue laws of the United States. You
are required to give us the information.
We need it to ensure that you are
complying with these laws and to allow
us to figure and collect the right amount
of tax. Section 6109 requires return
preparers to provide their identifying
numbers on the return.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.
The time needed to complete and file
this form will vary depending on
individual circumstances. The estimated
average time is:
17 hr., 13 min.
Recordkeeping
Learning about the
5 hr., 15 min.
law or the form
Preparing the form
12 hr., 17 min.
Copying, assembling,
and sending the
1 hr., 52 min.
form to the IRS
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you.
You can write to the Internal Revenue
Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6406,
Washington, DC 20224. Do not send the
tax form to this address. Instead, see
When and Where To File on page 3.

Question 1
Foreign financial accounts. Check the
“Yes” box if either 1 or 2 below applies
to the organization. Otherwise, check the
“No” box:
1. At any time during the 2005
calendar year the organization had an
interest in or signature or other authority
over a bank, securities, or other financial
account in a foreign country; and
● The combined value of the accounts
was more than $10,000 at any time
during the calendar year; and
● The account was not with a U.S.
military banking facility operated by a
U.S. financial institution.
2. The organization owns more than
50% of the stock in any corporation that
would answer “Yes” to item 1 above.
See Form TD F 90-22.1, Report of
Foreign Bank and Financial Accounts, to
find out if the organization is considered
to have an interest in or signature or
other authority over a financial account
in a foreign country.
If “Yes” is checked for this question,
file Form TD F 90-22.1 by June 30,
2006, with the Department of the
Treasury at the address shown on the
form. Do not attach it to Form
1120-POL.
You can get Form TD F 90-22.1 by
calling 1-800-TAX-FORM
(1-800-829-3676) or you can download it
from the IRS website at www.irs.gov.
Also, if “Yes” is checked for this
question, enter the name of the foreign
country or countries. Attach a separate
sheet if more space is needed.

If you checked “Yes,” to Question 2, the
organization may be required to file
Form 3520, Annual Return To Report
Transactions With Foreign Trusts and
Receipt of Certain Foreign Gifts. For
details, see Form 3520.
Note. An owner of a foreign trust must
ensure that the trust files an annual
information return on Form 3520-A,
Annual Information Return of Foreign
Trust With a U.S. Owner. For details, see
the instructions for Form 3520-A.

Question 3
In the space provided, show any
tax-exempt interest income received or
accrued. Include any exempt-interest
dividends received as a shareholder in a
mutual fund or other regulated
investment company.