OMB No. 1545-0129 U.S. Income Tax Return

for Certain Political Organizations Form 1120-POL

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

Department of the Treasury

Internal Revenue Service

For calendar year 2005 or other tax year beginning , 2005, and ending , 20 .

Check the box if this is a section 501(c) organization or a separate segregated fund described in section 527(f)(3) 

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

If this is a principal campaign committee, and it is the

ONLY political committee, check here

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.)

The books are in care of  Enter name of candidate 

The books are located at  Telephone No. 

1 Dividends (attach schedule) 1

2 Interest 2

3 Gross rents 3

4 Gross royalties 4

5 Capital gain net income (attach Schedule D (Form 1120)) 5

Income

6 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6

7 Other income and nonexempt function expenditures (see instructions) 7

8 Total income. Add lines 1 through 7 8

9 Salaries and wages 9

10 Repairs and maintenance 10

11 Rents 11

12 Taxes and licenses 12

13 Interest 13

14 Depreciation (attach Form 4562) 14

15 Other deductions (attach schedule) 15

16 Total deductions. Add lines 9 through 15 16

Deductions

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

Tax credits. (Attach the applicable credit forms.) (See instructions) 21

Total tax. Subtract line 21 from line 20 22

20

Payments: a Tax deposited with Form 7004 23a

21

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. Add lines 23a through 23c 23d

24

22

Tax due. Subtract line 23d from line 22. See instructions on page 4 for depository method of payment

25 Overpayment. Subtract line 22 from line 23d 25

1 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 

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

2

Additional

Information

$ 3 Enter the amount of tax-exempt interest received or accrued during the tax year 

Cat. No. 11523K

4 Date organization formed 

Form 1120-POL (2005)

5a

c d

b

Yes No

Yes 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,

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 Preparer’s SSN or PTIN Preparer’s

signature

Check if

self-employed Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Phone no. ( )

May the IRS discuss this return

with the preparer shown below  (see page 3)? Yes No







Income tax. (See instructions) 20

23

24

Check if:

Final return

Amended return

Address change

Name change

2005
Form 1120-POL (2005) Page 2

Section references are to the Internal

Revenue Code unless otherwise noted.

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

● The candidate’s name and address.

● 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

● The candidate’s identifying number.

Purpose of Form

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).

General Instructions

Who Must File

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).

Political organizations and certain

exempt organizations file Form

1120-POL to report their political

organization taxable income and income

tax liability under section 527.

How To Get Forms and

Publications

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website 24 hours a day, 7 days a week

at www.irs.gov to:

● Download forms, instructions, and

publications.

● See answers to frequently asked tax

questions.

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Products on CD, and get:

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publications.

● Prior year forms, instructions, and

publications.

● 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.

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.

Taxable Income

Photographs of Missing

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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

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1-800-THE-LOST (1-800-843-5678) if

you recognize a child.

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

● Order IRS products online.

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.

● Tax Map: an electronic research tool

and finding aid.

● Tax law and frequently asked

questions (FAQs).

● 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.

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:
Form 1120-POL (2005) Page 3

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.

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.

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.

Who Must Sign

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.

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.

● Give a copy of the return to the

taxpayer.

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.

Taxable income is figured with the

adjustments shown in 1, 2, and 3 on

page 2.

2. The deductions directly connected

with the production of this income.

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

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

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:

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

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.

If the due date falls on a Saturday,

Sunday, or legal holiday, the

organization may file on the next

business day.

● 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).

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

Specified Taxable Income

● Contributions of money and property.

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):

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 (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.

Note. A paid preparer may sign original

or amended returns by rubber stamp,

mechanical device, or computer

software program.

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

paid preparer’s authorization, see Pub.

947, Practice Before the IRS and Power

of Attorney.
Form 1120-POL (2005) Page 4

Interest and Penalties

Deposits With Form 8109

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

The following political organizations

are not required to file Form 990:

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.

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.

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.

Rounding Off to Whole

Dollars

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.

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.

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.

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

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.

● Economic performance takes place

with respect to the expense.

● The amount can be determined with

reasonable accuracy.

See Regulations section 1.451-1(a) for

details.

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).

Accounting Methods

Figure taxable income using the method

of accounting regularly used in keeping

the organization’s books and records.

Permissible methods include:

Under the accrual method, an amount

is includible in income when:

In all cases, the method used must

clearly show taxable income.

● Cash,

● Accrual, or

● Any other method authorized by the

Internal Revenue Code.

● 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

See the Instructions for Form 990 and

Form 990-EZ.

3. Form 990, Return of Organization

Exempt From Income Tax, or Form

990-EZ, Short Form Return of

Organization Exempt From Income Tax.

● Any political organization excepted

from the requirement to file Form 8871,

and

● Any caucus or association of state or

local officials.

2. Form 8872, Political Organization

Report of Contributions and

Expenditures (periodic reports are

required during the calendar year).

● A tax-exempt organization described

in section 501(c) that is treated as

having political organization taxable

income under section 527(f)(1).

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).

● A state or local committee of a

political party, or

● A political committee of a state or

local candidate,

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.

● 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.),

material change in the organization.

However, do not file this form if the

organization is:

performance, (b) payment is due, or (c)

payment is received, and
Form 1120-POL (2005) Page 5

Line 7—Other income and nonexempt

function expenditures. Enter the

income from other sources, such as:

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.

Specific Instructions

Assembling the Return

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.

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.

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:

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.

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.

If the organization has changed its

address since it last filed a return, check

the “Address change” box.

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.

● The organization has a tax year of less

than 12 months that begins and ends in

2006, and

● 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.

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:

Attach a schedule listing all income

and expenditures included on line 7.

Other penalties. Other penalties can be

imposed for negligence, substantial

understatement of tax, and fraud. See

sections 6662 and 6663.

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.

● 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).

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.

If the organization has changed its

name since it last filed a return, check

the “Name change” box.

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.

● 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.

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.

● 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.

● 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.

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.

(including extensions) to the date of

payment. The interest charge is figured

at a rate determined under section 6621.

Line 19—Taxable income. Do not file

Form 1120-POL if the taxable income on

line 19 is zero or less.
Form 1120-POL (2005) Page 6

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is:

Recordkeeping 17 hr., 13 min.

Learning about the

law or the form 5 hr., 15 min.

Preparing the form 12 hr., 17 min.

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.

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.

Copying, assembling,

and sending the

form to the IRS 1 hr., 52 min.

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.

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.

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.

Question 2

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. 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.

Enter the total amount of qualified

credits on line 21 and attach the

applicable credit forms.

Additional Information

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.

● Qualified electric vehicle credit. See

Form 8834, Qualified Electric Vehicle

Credit, and section 30.

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.

● 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.

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.

1.

2.

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.

7.

8.

9.

10.

Enter line 1 or $50,000,

whichever is less

Enter taxable income (line 19,

Form 1120-POL)

Enter line 5 or $9,925,000,

whichever is less

Subtract line 6 from line 5

Multiply line 2 by 15%

Multiply line 4 by 25%

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

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: