Form 1120-POL (1985)

Page 4

California (all other counties),
Hawaii

Delaware, District of
Columbia, Maryland,
Pennsylvania

G. When to File.—In general, an
organization must file Form 1120-POL by
the 15th day of the 3d month after the end
of the tax year.

Extensions. —File Form 7004, Application
for Automatic Extension of Time to File
Corporation Income Tax Return, to request
an automatic 6-month extension of time to
file Form 1120-POL.

H. Period Covered.—File the 1985 return
for calendar year 1985 and fiscal years that
begin in 1985 and end in 1986. Fora fiscal
year, fillin the tax year space at the top of
the form

|. Depositary Method of Tax Payment.—
The organization must pay the tax due in full
within 24 months after the end of the tax
year.

Deposit organization income tax
payments with a Federal Tax Deposit
Coupon (Form 8109). If you do not receive
these coupons, please contact your IRS.
district office. Make these tax deposits with
either a financial institution qualified as a
depositary for Federal taxes or the Federal
Reserve Bank or Branch (FRB) servicing the
geographic area where the organization is
located. Do not submit deposits directly to
an IRS office, otherwise the organization
may be subject to a 5% FTD penalty.
Records of deposits will be sent to IRS for
crediting to the organization's account. See
the instructions contained in the coupon
book for more information.

To get more deposit forms, use the
reorder form (Form 8109A) provided in the
coupon book.

J. Change in Accounting Period.—Before
changing an accounting period, the
Commissioner's approval must be obtained
(Regulations section 1.442-1) by filing
Form 1128, Application for Change in
Accounting Period. Also see Publication
538, Accounting Periods and Methods.

K. Accounting Methods.—Taxable income
must be computed using the method of
accounting regularly used in keeping the
organization's books and records. In all
cases, the method used must clearly reflect
taxable income. (See section 446.)

Unless the law specifically permits
otherwise, the organization may change the
method of accounting used to report taxable
income in earlier years (for income as a
whole or for any material item) only by first
getting consent on Form 3115, Application
for Change in Accounting Method. Also see
Publication 538.

L. Rounding Off to Whole-Dollar
Amounts.—Money items may be shown on
the return and accompanying schedules as
whole-dollar amounts. To do so, drop any
amount less than 50 cents and increase any
amount from 50 cents through 99 cents to
the next higher dollar.

M. Attachments.—In order to process the
return, we ask that you complete every
applicable entry space on Form 1120-POL.
Please do not write “See attached” instead
of completing the entry spaces. If more
space is needed on forms or schedules,
attach separate sheets to the back of Form
1120-POL. Attach schedules in alphabetical

Fresno, CA 93888

Philadelphia, PA 19255

order and forms in numerical order. Also put
the taxpayer's name and employer
identification number (EIN) on each sheet.
N. Signature.—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. A
receiver, trustee, or assignee must sign and
date any return required to be filed on
behalf of an organization.

If an organization officer filled in Form
1120-POL, the Paid Preparer’s space under
“Signature of officer" should remain blank.
If someone prepares Form 1120-POL and
does not charge the organization, that
person should not sign the return. Certain
others who prepare Form 1120-POL should
not sign. For example, a regular, full-time
employee of the organization such as a
clerk, secretary, etc. does not have to sign.

Generally, anyone who is paid to prepare
Form 1120-POL must sign the return and
fill in the other blanks in the Paid Preparer’s
Use Only area of the return.

The preparer required to sign the return
MUST complete the required preparer
information and:

e Sign it, by hand, in the space provided
for the preparer's signature. (Signature
stamps or labels are not acceptable.)

© Give a copy of Form 1120-POL to the
taxpayer in addition to the copy filed with
IRS.

Tax return preparers should be familiar
with their responsibilities. See Publication
1045, Information and Order Blanks for
Preparers of Federal Income Tax Returns,
for more details.

O. Employer Identification Number.—All
political organizations (including separate
segregated funds described in section
527(f)(3) and newsletter funds) must use an
employer identification number (EIN).

An organization that does not have an
EIN should apply for one on Form SS-4,
Application for Employer Identification
Number, Obtain this form at most IRS or
Social Security Administration offices. Send
Form SS-4 to the same Internal Revenue
Service Center to which Form 1120-POL is
mailed. If the EIN has not been received by
the filing time for Form 1120-POL, write
“Applied for” in the space for the EIN.

P. Penalties. —Avoid penalties and
interest by correctly filing and paying the
tax when due. The organization may have
to pay the following penalties unless it can
show that failure to file or to pay was due to
reasonable cause and not willful neglect.
(These penalties are in addition to the
interest charge on unpaid tax at a rate
under section 6621.)

e A political organization that fails to file its
tax return when due (including any
extensions of time for filing) may be subject
to a penalty of 5% a month or fraction of a
month, up to a maximum of 25%, for each
month the return is not filed. (The penalty is
imposed on the net amount due.) The
minimum penalty for failure to file a tax
return within 60 days of the due date for
filing (including extensions) is the lesser of
the underpayment of tax or $100.

e A political organization that fails to pay
the tax when due may be subject to a
penalty of 2% a month or fraction of a

month, up to a maximum of 25%, for each
month the tax is not paid. (The penalty is
imposed on the net amount due.)

Penalty for Overstated Tax Deposits. —If
deposits are overstated, the organization may
be subject to a penalty. See section 6656(b).
Q. Estimated Tax, Minimum Tax,
Employee Stock Ownership Credit,
Investment Credit and Jobs Credit.—
These items do not apply to political
organizations defined in section 527

R. Credits. —The organization may qualify
for the following credits:

Foreign tax credit. See Form 1118,
Computation of Foreign Tax Credit—
Corporations.

Research credit. See Form 6765, Credit
for Increasing Research Activities, and
section 30.

Possessions tax credit. See Form 5712,
Election to be Treated as a Possessions
Corporation Under Section 936, for rules on
how to elect to claim the possessions tax
credit (section 936). Compute the credit on
Form 5735, Computation of Possessions
Corporation Tax Credit Allowed Under
Section 936.

Credit for fuel produced froma
nonconventional source. See section 29 for
a definition of qualified fuels, provisions for
figuring the credit, and other special rules.

Alcohol fuel credit. The organization may
be able to take a credit for alcohol used as a
fuel. See Form 6478, Credit for Alcohol
Used As Fuel, and section 40(a).

Enter the total amount of credits on line
22, and attach the appropriate forms.

S. Foreign Financial Accounts and
Foreign Trusts.—

Question 1: 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 year the
organization had an interest in or signature
or other authority over a bank account,
securities account, or other financial
account in a foreign country, AND

@ The combined value of the
accounts was more than $5,000 at
any time during the 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
owns one or more foreign bank accounts.

Get Form TD F 90-22.1, Report of
Foreign Bank and Financial Accounts, to
see if the organization is considered to have
an interest in or signature or other authority
over a bank account, securities account, or
other financial account in a foreign country.

If “Yes” is checked for Question 1, file
Form TD F 90-22.1 by June 30, 1986, with
the Department of the Treasury at the
address shown on the form. Form TD F 90-
22.1 is nota tax return, so do not file it with
the IRS.

Form TD F 90-22. 1 can be obtained
from many IRS offices.

Also, if you checked “Yes,” write the name
of the foreign country or countries. Attach
additional sheets if more space is needed.

Question 2: Check the “Yes” box if the
organization was a grantor of, ora
transferor to, a foreign trust that existed
during this tax year.


1120-POL U.S. Income Tax Return OMB No, 1545-0129
form for Certain Political Organizations
Department of the Treasury » For Paperwork Reduction Act Notice, see instructions on page 3. 1] 9g 8 5
Internal Revenue Service To be filed by those organizations having taxable income (line 19).
For calendar year 1985 or other tax year beginning 1985 and ending 19
Note: If you are a section 501(c) organization (see instruction A3) or a separate Segregated fund described in section 527(f)(3), check here > Cy.
Name of organization Employer identification number (see instruction 0)
g
2) Number and street Date organization formed
z
‘S| City or town, state and ZIP code (See instruction B2)
3 If this is a principal campaign committee, and this is,
3 the ONLY poitical committee, check here. Be L_]
a if this is a principal campaign committee, but is NOT
the only political committee, check here and attach a
copy of designation. oO
Enter name of candidate The books are in care of >
Locatedat Bsns ssses seers TelephoneNo. BO
1 Dividends (attach schedule) . 1
2 Interest 2
| 3 Gross rents 3
E 4 Gross royalties. 4 |
| 5 Capital gain net income ‘(attach Schedule D (Form 1120) . . 5
| 6 Net gain or (loss) from Part II, Form 4797, (attach Form 4797) . 6
7 Other income (see ‘‘Note”’ in instruction D—attach schedule) 7
8 Total income (add lines 1 through 7) : : 8
9 Salaries and wages 9
10 Repairs 10
11 Rents ll
12 Taxes 12
w|13 Interest . 13
§|14 Depreciation from Form 4562 (attach Form 4562) . hone 14
15 Other deductions (attach schedule). ©... ee ee ee LAS
3 16 Total deductions (addlines9through15). . . . woe 16
©|17 Taxable income before specific deduction of $100 (line 8 less line 16). Section 501(c) organizations show:
a amount of net investment income (see instruction A3(b)(ii)) . . 1. 1 ,
b anaggregate amount expended for an exempt function (attach schedule) > _ MA
andenter online 17,thelesserofaorb . . . . . Laz
18 Less specific deduction of $100 (not allowed for newsletter funds defined under section 5270) . (18
19 Taxable income (subtract line 18 fromline 17)... . ~ 119
20 Tax imposed (see instruction B) . wo . . £20
21 Income tax (line 20 or alternative tax from Schedule D (Form 1120), line 17, whichever i is sles). . . Lal
22 Credits—(see instructionR) . . A 2
5/23 Total tax—Subtract line 22 fromline21. es 8
*/24 Credits: a Tax deposited with Form 7004 .
b Credit from regulated investment companies ‘(attach Form 2439) | 24
25 Tax due (subtract line 24 from line 23). See instruction | for depositary method of payment. 2. . [25
26 Overpayment (subtract line 23 fromline 24)... ss 26
1 At any time during the tax year, did you have an interest in or a signature or ‘other ‘authority over a financial account in a
foreign country (such as a bank account, securities account, or other financial account) (see instruction $s)? Yes No

Foreign Financial
Accounts and
Foreign Trusts

If “Yes,” write the name of the foreign country >
2 Were you the grantor of, or transferor to, a foreign trust which existed 4 during the current tax x year,

whether or not you have any beneficial interestinit?. . . . -C yes LINo

If “Yes,” you may have to file Forms 3520, 3520-A or 926.

Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and

Please | belief, itis true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Here » Signature of officer Date » Title
: Date Checkif Preparer’s social security no.
Preparer's vem-
Paid signature ea > 4
reparer's| 7 + +
Firm's name (or
Use Only | yours, ifself-employed) E.No,_P
and address ZIP code





Form 1120-POL (1985)

Page 3

Instructions

(Section references are to the Internal Revenue
Code, unless otherwise noted.)

Paperwork Reduction Act Notice.—We
ask for this information to carry out the
Internal Revenue laws of the United States.
We need it to ensure that taxpayers are
complying with these laws and to allow us to
figure and collect the right amount of tax.
You are required to give us this information.

A. Who Must File Form 1120-POL.—

1. A political organization, that 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, must file Form 1120-
POL if such organization has any taxable
income (defined in C below).

2. A newsletter fund (as described in
section 527(g)) must file Form 1120-POL if
it has political organization taxable income.
Taxable income is the same as described in
C below with these modifications:

(a) the $100 specific deduction is not

allowed, and

(b) the exempt function is only the

preparation and circulation of the
newsletter.

For further information, see section
527(g) and Regulations section 1.527-7.

3. (a) Under section 527(f), certain
organizations described in section 501(c)
and exempt from tax under section 501(a),
must file Form 1120-POL if they:

(i) expend any amount during the tax
year directly (or through another
organization) for an exempt function
(defined in E below), and

(ii) have taxable income.

(b) For a section 501(c) organization,
taxable income is the lesser of:

(i) the amount expended during the tax
year for an exempt function (defined
in E below), or

(ii) the net investment income of the
organization for the tax year. Net
investment income, for this purpose,
means the gross amount of interest,
dividends, rents, 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 the deductions directly connected
with the production of this income.

Both of these amounts are computed
with the modifications described in C2
below.

Section 501(c) organizations exclude
those items taken into account for the tax
imposed by section 511.

(c) Ifa section 501(c) organization sets
up a separate segregated fund (section
527(f)(3)), the taxable income of the fund is
determined as described in C below.

For more information, see section 527(f)
and Regulations section 1.527-6.

B. Tax Imposed.—The tax imposed
depends on whether the political organization
is considered a principal campaign
committee (defined in instruction B2 below).

1. Political organization not a principal
campaign committee.—Multiply line 19
by 46% and enter the amount on line 20.

2. Principal campaign committee
(section 527(h)).—A principal campaign
committee means the political committee
designated only by a candidate for Congress
as his or her principal campaign committee
for purposes of section 302(e) of the
Federal Election Campaign Act of 1971.

\f a candidate for Congress elects to make
a designation under section 527(h), he or she
shall designate his or her principal campaign
committee by attaching a copy of his or her
Statement of Candidacy to Form 1120-POL.
This can be either the Federal Election
Commission Form 2, or an equivalent
statement filed with the Federal Election
Commission. This designation may also be
made by attaching a signed statement
containing the following information:

(1) name and address of the candidate
for Congress;

(2) taxpayer identification number;

(3) party affiliation and the office sought;

(4) district and State in which the office is
sought; and

(5) name and address of the principal
campaign committee.

Note: This designation must be attached to
Form 1120-POL and may be made only bya
candidate for Congress. If a designation is in
effect from an earlier tax year, attach a copy
of the earlier designation to this year’s Form
1120-POL and check the appropriate box
on the form. See Regulations section
1.527-9.

If there is only one political committee
with respect to a candidate, no designation
is required. However, be sure to check the
appropriate box on the form.

A principal campaign committee is
subject to a lower rate of tax than other
political organizations. Compute its tax as
follows:

If the amount Enter on line 20:
on line 19 is: Of the
But not amount

Over— —over— over—

0 $25,000 15% 0
$25,000 50,000 $3,750 + 18% $25,000
50,000 75,000 8,250 + 30% 50,000
75,000 100,000 15,750 + 40% 75,000
100,000 25,750 + 46% 100,000

For taxable income over $1,000,000, an
additional tax is imposed at the rate of 5%
of the excess over $1,000,000, or $20,250,
whichever is less.

C. Taxable Income.—

Note: Generally, campaign contributions
are not includible in income; expenditures
for campaign purposes are not deductible.
(See instruction D below.)

Taxable income is the excess of:

1. gross income for the tax year
(excluding any exempt function income
defined below) over

2. the deductions allowed that are
directly connected with the production of
gross income (excluding exempt function
income) computed with the following
modifications:

(a) a specific deduction of $100 is
allowed;

(b) a net operating loss deduction
(section 172) is not allowed; and

(c) a deduction under Part Vill of
subchapter B (special deductions for
corporations) is not allowed.

See Regulations sections 1.527-4 and
1.527-5.

For those organizations claiming a
deduction or credit for automobiles and
other “listed property”, complete Part Ill of
Form 4562, Depreciation and Amortization.
If the organization provides taxable fringe
benefits to its employees, such as the
personal use of autos, do not deduct as
wages the amount allocated for
depreciation and other expenses that you
claim on your return.

D. Exempt Function Income.—Exempt
function income is any amount received as:

1. contributions of money or other
property;

2. membership dues, fees, or assessments.
from members of the political organization;

3. proceeds from a political fund-raising
or entertainment event, or proceeds from
the sale of political campaign materials, that
are not received in the ordinary course of
any trade or business; or

4. proceeds from the conducting of any
bingo game as defined in section 513(f)(2),
to the extent this amount is segregated for
use only for the exempt function of the
political organization.

See Regulations section 1.527-3.
Note: Income received in the course of an
ordinary trade or business is to be included
in line 7, “other income,"’ page 1.
E. Exempt Function.—For purposes of
section 527, the term ‘‘exempt function”
means the function 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 in a political
organization, or the election of Presidential
or Vice-Presidential electors, whether or not
the individual or electors are selected,
nominated, elected, or appointed.

See Regulations section 1.527-2(c).

F. Where to File.—(Continued on page 4)
Ifthe political organiza- Use the following Inter-
tion's main office is nal Revenue Service
located in Center address
4 Vv

New Jersey, New York City
and counties of Nassau,
Rockland, Suffolk, and
Westchester

New York (all other
counties), Connecticut,
Maine, Massachusetts,
Minnesota, New Hampshire,
Rhode island, Vermont

Alabama, Flonda, Georgia,
Mississippi, South Carolina

Kansas, Louisiana, New Mexico,
‘Oklahoma, Texas

Kentucky, Michigan,
‘Ohio, West Virginia

Holtsville, NY 00501

Andover, MA 05501

Atlanta, GA 31101

Austin, TX 73301

Cincinnati, OH 45999

Illinors, lowa, Missour,
Wisconsin

Arkansas, Indiana, North
Carolina, Tennessee, Virginia

‘Alaska, Arizona, California
(counties of Alpine, Amador,
Butte, Calaveras, Colusa, Contra
Costa, Del Norte, E! Dorado,
Glenn, Humboldt, Lake, Lassen,
Manin, Mendocino, Modoc, Napa,
Nevada, Placer, Plumas,
Sacramento, San Joaquin, Shasta,
Sierra, Siskiyou, Solano, Sonoma,
Sutter, Tehama, Trinity, Yolo, and
Yuba), Colorado, Idaho, Montana,
Nebraska, Nevada, North Dakota,
Oregon, South Dakota, Utah,
Washington, Wyoming

Kansas City, MO 64999

Memphis, TN 37501

Ogden, UT 84201