Form 1120-POL (1983)

Page 4

H. Period Covered.—File the 1983
return for calendar year 1983 and fiscal
years that begin in 1983 and end in 1984.
Fora fiscal year, fill in 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 2¥2 months after the end of the tax
year.

Deposit organization income tax
payments with a Federal Tax Deposit
Payment 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. 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. There will no longer
be periodic mailouts of FTD deposit forms.
To get more deposit forms, use the reorder
form (Form 8109A) provided in the coupon

ok.

Do not submit deposits directly to an IRS
office, otherwise the organization may be
subject to a 5% FTD penalty.

J. Change in Accounting Period.—
Before changing an accounting period, the
Commissioner's approval must be obtained
(Regulation 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 adopted
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.—The organization may show the
money items 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.—If more space is
needed on forms or schedules, attach
separate sheets to the back of Form
1120-POL. Attach schedules in
alphabetical 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 a 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.

's should be familiar
ies. 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 ata rate under section 6621.)

@ A political organization that fails to file its
tax return when due (including any
extensions of time for filing) may be subject
toa 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.

@ A political organization that fails to pay
the tax when due may be subject toa
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. Possessions Tax Credit.—

See Form 5712, Election to be Treated asa
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, Com-
putation of Possessions Corporation Tax
Credit Allowed Under Section 936, and in-
clude the amount of the credit in the total
for Form 1120-POL, line 22. Write in the
margin, next to the entry on line 22, the
amount of the credit and identify it as a sec-
tion 936 credit.

R. 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.

S. Other Credits. —The organization
may qualify for research credit, alcohol fuel
credit, and credit for fuel produced froma
nonconventional source. See Form 6765,
Credit for Increasing Research Activities,
Form 6478, Credit for Alcohol Used as
Fuel, and section 44D, respectively.

T. 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 the $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 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 90-22.1 by June 30, 1984, with the
Department of the Treasury at the address
shown on the form. Form 90-22.1 is nota
tax return, so do not file it with the IRS.

Form 90-22.1 can be obtained from
many IRS offices.

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.


cof 120-POL

Internal Revenue Service To be filed by those org:

U.S. Income Tax Return
for Certain Political Organizations

Department of the Treasury > Page 2 is blank. A balance sheet and net worth analysis are no longer required.
izations having taxable income (line 19).

OMB No. 1545-0129

1983

For calendar year 1983 or other tax year beginning

1983 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 > TL

ag] Name of organization Employer identification number (see instruction 0)
2
g Number and street Date organization formed
3
B] ity or town, State and ZIP code Ifyou are a principal campaign committee (see instruc
a tion B2), check here. woe >
Enter name of candidate P eee eee eee eee eee eee eee eed The books areincareof P _... lee ee---------
Located at_> Telephone No, >
1 Dividends (attach schedule) . 1
£ 2 Interest 2
§} 3 Gross rents 3
| 4 Grossroyalties . 4
8) 5 Capitalgainnet income from Schedule D(Form 1120), line re (attach separate Schedule D (Form 1 120)) 5
§ 6 Net gain or (loss) from Form 4797, line 14(a) (attach Form 4797) . Loe ee 6
7 Other income (see ‘‘Note”’ in instruction D—attach hn schedule). 7
8 Total income (add lines 1 through 7) 8
9 Salaries and wages . 9
10 Repairs 10
11 Rents . 11
12 Taxes . 12
w|13 Interest 13
6|14 Depreciation from Form 4562 (attach Form 4562). 14
B]15 Other deductions (attach schedule) 15
B| 16 Total deductions (add ines 9 through 15). . - 2a
Q|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)) . ab . -
(b) an aggregate amount expended for an exempt function (attach schedule) > _
and enter on line 17, the lesser of (a) or (b)). 7
18 Less specific deduction of $100 (not allowed for newsletter: funds defined unders section n527(@) 18
19 Taxable income (subtract line 18 from line 17) soe 19
20 Tax imposed (see instruction B) . 20
21. Income tax (line 20 or alternative tax from Schedule D(Form 1120), line 17, ‘whichever i is sles) 21
22 Foreign tax credit (attach Form 1118). 22
%|23 Total tax—Subtract line 22 from line 21 . . (33
124 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 25
26 Overpayment (subtract line 23 from line 24). . 26
g 2 | 1° Atany time during the tax year, did you have an interest in or a ‘signature orother ‘authority over a bank
= 25 = account, securities account, or other financial account in a foreign country (see instruction T)? . . O yes CINo
52 §&| 2 Were you the grantor of, or transferor to, a foreign trust which existed during the current tax year,
es f whether or not you have any beneficial interest init? . Do C1 No
eo £ If "Yes,’' you may have to file Forms 3520, 3520- Aor 926.

‘Under penalties of perjury, | declare that | have examined this return, including accompanying
Please | Dele: tistrue, correct, and complete. Declaration of preparer (other than taxpayer) is basec

“Schedules and statements, and to the best of my knowledge and
‘on all information of which preparer has any knowledge.

Sign | >
Here Signature of officer Date Title

Preparer's Date Checkif Preparer's social security no.
Paid signature Sioved moO toot

" :

Prepater’s |—Firm’s name (or ENO. pp
Use Only | yours, itseltemployed) >

and address ZiPcode P

For Paperwork Reduction Act Notice, see instructions on page 3.

Form

1120-POL (1983)




Form 1120-POL (1983)

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 In-
ternal 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 ina
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 Regulation 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) lf a 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 instruction C.

For more information, see section 527(f)
and Regulation 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.

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. See section 527(h) for special
rules regarding the term
“designation.”

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

N

If the amount
on line 19 is: Enter on line 20:
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

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) adeduction under Part VIII of
subchapter B (special deductions
for corporations) is not allowed.

See Regulation sections 1.527-4 and
527-5.
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 Regulation 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 Regulation section 1.527-2(c).
F. Where to File.—
If the political organiza-

tion's main office is
located in

Vv

Use the following Inter-
nal Revenue Service
Center address

Vv

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

Holtsville, NY 00501

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

Andover, MA 05501

Alabama, Florida, Georgia,

Mississippi, South Carolina Attanta, GA 31101

Michigan, Ohio Cincinnati, OH 45999

‘Arkansas, Kansas, Louisiana,

New Mexico, Oklahoma, Texas Austin, TX 73302

Alaska, Arzzona, Colorado,
Idaho, Minnesota, Montana,
Nebraska, Nevada, North
Dakota, Oregon, South Dakota,
Utah, Washington, Wyoming

Ogden, UT 84201

Ilinois, lowa, Missouri,

Wisconsin Kansas City, MO 64999

California, Hawaii Fresno, CA 93888

Indiana, Kentucky, North
Carolina, Tennessee, Virginia,

Memphis, TN 37501
West Virginia

Delaware, District of
Columbia, Maryland,
Pennsylvania

Philadelphia, PA 19255

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 to
request an automatic 6-month extension of
time to file Form 1120-POL.