Form1120-POL

Department of the Treasury 

Internal Revenue Service

U.S. Income Tax Return for Certain Political Organizations OMB No. 1545-0129

2012

For calendar year 2012 or other tax year beginning , 2012, and ending , 20

Check the box if this is a section 501(c) organization . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Check if: 

Final return 

Name change 

Address change 

Amended return 

Name of organization

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

City or town, state, and ZIP code

Employer identification number

Candidates for U.S. Congress Only

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.) . . .

Income 

1 Dividends (attach statement) . . . . . . . . . . . . . . . . . . . . . . . 1 

2 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 

3 Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

4 Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 

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

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

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

8 Total income. Add lines 1 through 7 . . . . . . . . . . . . . . . . . . . . 8 

Deductions 

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 statement) . . . . . . . . . . . . . . . . . . . . 15 

16 Total deductions. Add lines 9 through 15 . . . . . . . . . . . . . . . . . . 16 

17 Taxable income before specific deduction of $100 (see instructions). Section 501(c) organizations show: 

a Amount of net investment income . . . . . . . . . . . . . ▶

b Aggregate amount expended for an exempt function (attach statement) . ▶ 17c 

18 Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g)) . . . 18 

Tax 

19 Taxable income. Subtract line 18 from line 17c. (If line 19 is zero or less, see the instructions.) . . 19 

20 Income tax. (see instructions) . . . . . . . . . . . . . . . . . . . . . . 20 

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

22 Total tax. Subtract line 21 from line 20 . . . . . . . . . . . . . . . . . . . . 22 

23 Payments: a Tax deposited with Form 7004 . . . . . . . . 23a 

b Credit for tax paid on undistributed capital gains (attach Form 2439) 23b 

c Credit for federal tax on fuels (attach Form 4136) . . . 23c 

d Total payments. Add lines 23a through 23c . . . . . . . . . . . . . 23d 

24 Tax due. Subtract line 23d from line 22. See instructions for depository method of payment . . . 24 

25 Overpayment. Subtract line 22 from line 23d . . . . . . . . . . . . . . . . . 25 

Additional 

Information 

1 At any time during the 2012 calendar year, did the organization have an interest in or a signature or 

other authority over a financial account (such as a bank account, securities account, or other financial 

account) in a foreign country? (see instructions) . . . . . . . . . . . . . . . . . Yes No

If “Yes,” enter the name of the foreign country ▶

2 During the tax year, did the organization receive a distribution from, or was it the grantor of, or transferor 

to, a foreign trust? If “Yes,” the organization may have to file Form 3520 . . . . . . . . . . Yes No

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

4 Date organization formed ▶

5a The books are in care of ▶ b Enter name of candidate ▶

c The books are located at ▶ d Telephone No. ▶

Sign 

Here

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.

▲

Signature of officer Date

▲

Title

May the IRS discuss this return with 

the preparer shown below (see 

instructions)? Yes No 

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer's signature Date Check if 

self-employed

PTIN

Firm’s name ▶

Firm's address ▶

Firm's EIN ▶

Phone no.

For Paperwork Reduction Act Notice, see instructions. Cat. No. 11523K Form 1120-POL (2012) 
Form 1120-POL (2012) Page 2 

Section references are to the Internal 

Revenue Code unless otherwise noted. 

Future developments. The IRS has 

created a page on IRS.gov for 

information about Form 1120-POL and 

its instructions, at www.irs.gov/

form1120pol. Information about any 

future developments affecting Form 

1120-POL (such as legislation enacted 

after we release it) will be posted on that 

page.

General Instructions 

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. 

Phone Help 

If you have questions and/or need help 

completing Form 1120-POL, please call 

1-877-829-5500. This toll-free telephone 

service is available Monday through 

Friday. 

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 

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

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). 

Taxable Income 

Political organization taxable income 

(line 19) is the excess of (a) gross 

income for the tax year (excluding 

exempt function income (defined later)) 

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 Other Reports and 

Returns That May Be Required), 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 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: 
Form 1120-POL (2012) Page 3 

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 

2. The deductions directly connected 

with the production of this income. 

Taxable income is figured with the 

adjustments shown in 1, 2, and 3 under 

Taxable Income, earlier. 

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 Use Only area 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 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. Also, facsimile 

signatures are authorized. 

Paid Preparer Authorization 

If the organization wants to allow the IRS 

to discuss its 2012 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 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 

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 

2013 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: 

Department of the Treasury 

Internal Revenue Service Center 

Ogden, UT 84201

If the organization’s principal business, 

office or agency is located in a foreign 

country or a U.S. possession, the 

address for mailing their return should 

be:

Internal Revenue Service Center 

P.O. Box 409101 

Ogden, UT 84409 

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; 

• 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. 

Overnight deliveries should be mailed 

to:

Internal Revenue Service 

1973 Rulon White Blvd. 

Ogden, UT 84404

Extension. File Form 7004, Application 

for Automatic Extension of Time To File 

Certain Business Income Tax, 

Information, and Other Returns, 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, 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 

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). 
Form 1120-POL (2012) Page 4 

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 or 

Form 990-EZ. 

Accounting Methods 

Figure taxable income using the method 

of accounting regularly used in keeping 

the organization’s books and records. 

Generally, 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. 

Change in accounting method. 

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, see Pub. 

538, Accounting Periods and Methods. 

Accounting Period 

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. 

Change of tax year. 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. 

Rounding Off to Whole 

Dollars 

The organization may round off cents to 

whole dollars on the return and 

accompanying schedules. If the 

organization does round to whole 

dollars, it must round all amounts. To 

round, drop amounts under 50 cents 

and increase amounts from 50 to 99 

cents to the next dollar. For example, 

$1.39 becomes $1 and $2.50 becomes 

$3. 

If two or more amounts must be 

added to figure the amount to enter on a 

line, include cents when adding the 

amounts and round off only the total. 

Federal Tax Deposits Must 

be Made by Electronic 

Funds Transfer

You must use electronic funds transfer 

to make all federal deposits (such as 

deposits of estimated tax, employment 

tax, and excise tax). Forms 8109 and 

8109-B, Federal Tax Deposit Coupon, 

are no longer in use. Generally, 

electronic fund transfers are made using 

the Electronic Federal Tax Payment 

System (EFTPS). If you do not want to 

use EFTPS, you can arrange for your tax 

professional, financial institution, payroll 

service, or other trusted third party to 

make deposits on your behalf. Also you 

may arrange for your financial institution 

to initiate a same day wire payment on 

your behalf. EFTPS is a free service 

provided by the Department of Treasury. 

Services provided by your tax 

professional, financial institution, payroll 

services, or other third party may have a 

fee. To get more information about 

EFTPS or to enroll in EFTPS, visit 

www.eftps.gov or call 1-800-555-4477. 

Additional information about EFTPS is 

available in Publication 966, Electronic 

Federal Tax Payment System A Guide To 

Getting Started.

Deposits on business days only. If a 

deposit is required to be made on a day 

that is not a business day, the deposit is 

considered timely if it is made by the 

close of the next business day. A 

business day is any day other than 

Saturday, Sunday, or legal holiday. For 

example, if a deposit is required to be 

made on a Friday and Friday is a legal 

holiday, the deposit will be considered 

timely if it is made by the following 

Monday (if that Monday is a business 

day). The term "legal holiday" means any 

legal holiday in the District of Columbia.

▲!

CAUTION

If the organization owes tax

when it files Form 1120-POL, 

do not include the payment 

with the tax return. Instead, 

use EFTPS. 

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 

(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. The following penalties 

may apply if the organization does not 

file its tax return by the due date, 

including extensions. 

Late filing of return. 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 $135. If you receive a 

notice about a penalty after you file this 

return, reply to the notice with an 

explanation and we will determine if you 

meet reasonable-cause criteria. Do not

include an explanation when you file 

your return. 

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. If you receive a notice about 

a penalty after you file this return, reply 

to the notice with an explanation and we 

will determine if you meet reasonablecause criteria. Do not include an 

explanation when you file your return. 

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. 
Form 1120-POL (2012) Page 5 

Specific Instructions 

Period covered. File the 2012 return for 

calendar year 2012 and fiscal years that 

begin in 2012 and end in 2013. For a 

fiscal year, fill in the tax year space at 

the top of the form. 

Note. The 2012 Form 1120-POL may 

also be used if: 

• The organization has a tax year of less 

than 12 months that begins and ends in 

2013, and 

• The 2013 Form 1120-POL is not 

available at the time the organization is 

required to file its return. The 

organization must show its 2013 tax year 

on the 2012 Form 1120-POL and take 

into account any tax law changes that 

are effective for tax years beginning after 

December 31, 2012.

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-B, Change of 

Address—Business, 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. 

The online application process is not 

yet available for organizations with 

addresses in foreign countries. 

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. 

Income and deductions. Campaign 

contributions and other exempt function 

income are generally not includible in 

income; likewise, campaign expenditures 

and other exempt function expenditures 

are not deductible. 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), Part III, 

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 compute 

their tax by subtracting 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, earlier, for an 

explanation of the amounts to enter on 

these lines. 

Line 19. Taxable income. If the taxable 

income on line 19 is zero or less, the 

Form 1120-POL is not required to be 

filed, but it may be filed to start the 

statute of limitations period. 

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 by 

multiplying line 19 by 35% and enters 

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 . . .
Form 1120-POL (2012) Page 6 

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. 

• Qualified electric vehicle credit. See 

Form 8834, Qualified Plug-in Electric and 

Electric Vehicle Credit, and section 30. 

• General business credit (excluding 

the small employer health insurance 

premium credit, and the work 

opportunity 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. 

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 2012 

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; 

• 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, 2013, 

with the Department of the Treasury at 

the address shown on the form. Do not 

attach it to Form 1120-POL. 

If the due date falls on a Saturday, 

Sunday, or legal holiday, the 

organization must file on the next 

business day.

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 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 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. 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 taxexempt interest income received or 

accrued. Include any exempt-interest 

dividends received as a shareholder in a 

mutual fund or other regulated 

investment company.

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. 

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: 

Recordkeeping . . . 17 hr., 13 min. 

Learning about the 

law or the form . . . . 5 hr., 15 min.

Preparing the form. . 12 hr., 17 min.

Copying, assembling, 

and sending the form 

to the IRS . . . . . . 1 hr., 52 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:

Internal Revenue Service 

Tax Products Coordinating Committee 

SE:W:CAR:MP:T:M:S 

1111 Constitution Ave. NW, IR-6526 

Washington, DC 20224 

Do not send the tax form to this 

address. See When and Where To File 

on page 3.