Form 1120-POL (1990)

Page 4

tf more space is needed on forms or
schedules, attach separate sheets to the
back of Form 1120-POL, Indicate at the top
of each attachment the form number or
schedule letter of the form or schedule
being continued, Show the information
called for in the same order as on the
printed form. Be sure to show totals on the
printed forms.

Please use sheets that are the same size
as the forms and schedules. Attach these
separate sheets after all the forms and
schedules. Also put the organization’s name
and employer identification number (EN)
on each sheet.

Employer Identification Number.—Each
political organization must use its employer
identification number.

An organization that does not have an EIN
should apply for one on Form SS-4,
Application for Employer Identification

lumber. This form may be obtained 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 date for Form
1120-POL, write “Applied for” in the space
for the EIN, For more information
concerning an EIN, see Pub. 583.

Specific Instructions

Additional Information

Foreign Financial Accounts, Foreign
Trusts, and Tax-Exempt Interest.—

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 financial account
in a foreign country (such as a bank
account, securities account, or other
financial account); AND

© The combined value of the accounts was
more than $10,000 at any time during the
year; AND

@ The account was NOT with a U.S. militai

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 mare foreign bank accounts.

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

If “Yes” is checked for Question 1, file
form TD F 90-22.1 by June 30, 1991, with
the Department of the Treasury at the
address shown on the form. Form TD F 90-
22.1 is nota tax return, so do not file it with
Form 1120-POL.

Form TD F 90-22.1 may be obtained from
IRS Forms Distribution Centers.

Also, if “Yes” is checked for this question,
write the name of the foreign country or
countries, Attach a separate sheet if more
space is needed.

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

Question 3; Report in the space provided,
any tax-exempt interest received or accrued
including any exempt interest dividends
received as a shareholder in a mutual fund
or other regulated investment company.
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 ona
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 total
income from other sources, such as exempt
function income that was not properly
segregated for exempt functions and income
received in the course of an ordinary trade
or business. Also include on this line the
total expenditures that were made from
exempt function income that were not for an
exempt function and resulted in a direct or
indirect financial benefit to the political
organization or were illegal. Attach a
schedule {isting all income and expenditures
included on line 7.

Lines 17(a) and 17(b), Taxable income
before specific deduction of $100.—
Complete these lines only if your
organization is a section 501(c)
organization that made exempt function
expenditures that were not from a separate
segregated fund. For a description of the
amounts to be entered on these lines, see
the definition of taxable income for section
501(c) organizations in instruction B3.
Line 17(c), 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). Section 501(c) organizations enter
on line 17(c) the lesser of line 17(a) or line

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) and
instruction B4. The tax rate is lower for a
principal campaign committee.

“US. GOVERNMENT PRINTING OFFICE: 1990265-272

Political organization not a principal
campaign committee.—An organization
that is not a principal campaign committee
computes its tax on political organization
taxable income as follows: Multiply line 19,
Form 1120-POL by 34%. Enter the result
on line 20, Form 1120-POL.

Principal campaign committee (section
527(h)).—A political organization that is a
principal campaign committee of a
candidate for Congress computes its tax as
follows: Complete lines 1 through 10,
below, and enter the amount from line 10
online 20, Form 1120-POL.

1, Enter taxable income (line 19,
Form1120-POL). . . .
2. Enter the smaller of line 1 or

3, Subtract line 2 from line 1
4. Enter the smaller of line 3 or

5. Subtract line 4 from line 3
6, Enter 15% of line 2
7. Enter 25% of line 4
8. Enter 34% of line 5

9, If line 1 is greater than
$100,000, enter the lesser of:
5% of the excess over
$100,000; or $11,750

10. Add lines 6 through 9, Enter
here and on line 20, Form
M20-POL. . 1

Note: Estimated tax, alternative minimum
tax, and environmental tax do not apply to
political organizations.

Une 21, Credits. —The organization may
qualify for the following credits:

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

Possessions tax credit. See Form 5712,
Election To be Treated as a Possessions
Gorporation Under Section 936, and Form
5735, Computation of Possessions
Corporation Tax Credit Allowed Under
Section 936.

Alcohol fuel credit. See Form 6478,
Credit for Alcohol Used as Fuel, and
section 40.

Research credit. See Form 6765, Credit
for Increasing Research Activities, and
section 41.

Disabled access credit. See Form 8826,
Disabled Access Credit, and section 44.

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

Enter the total amount of these credits on
line 21 and attach the appropriate forms.
Note: /nvestment credit and jobs credit do
not apply to political organizations.



11 2 0-POL U.S. Income Tax Return OMB No. 1545-0129
Ferm for Certain Political Organizations
Department of the Treasury > For Paperwork Reduction Act Notice, see Instructions on page 2. 1990
Internal Revenue Service > Only organizations that have taxable Income (line 19) file Form 1120-POL.
For calendar year 1990 or other tax year beginning 1990, and ending 19 :
Note: If you are a section 501(c) organization (see instruction B3) or a separate segregated fund described in section 527(f)(3), check here> —[]
si“ ‘of organization Employer Identification number
= | Number, street, and room or suite no. (la P.O. box, see page 2 of Instructions.) Date organization formed
3
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Thebooksareincareof® beececececsececeeces Enter name ofcandidate mele eeee .-
Located at > Telephone No. >
Check applicable boxes: (1) [] Finalreturn (2) L] Changeinaddress (3) [J Amended return
1 Dividends (attach schedule). . . . oe ee
2 Interest . . Poe
| 3 Gross rents... . . : oe 3
§ 4 Grossroyalties. . . . Ce LA
| 5 Capital gain net income (attach Schedule D (Form L120) . Be ee LB
6 Net gain or (loss) from Form 4797, Part ll, line 18 (attach Form4797), 2... 1 we 6
7 Other income and nonexempt function expenditures (see instructions). . . . . 2... 1. «LZ
8 Total Income (add lines 1 through 7). Fa a ee 8
9 Salaries and wages po rr 2
10 Repairs. ee ee FO
11 Rents. Loe Le Bo pb
12 Taxes . . [a2
2/13 interest . Be ee es PAB
2)14 Depreciation (attach Form 4562) ee ee PS
3]15 Other deductions (attach schedule). . . i ©
3 16 Total deductions (add lines9through15). . . .
17 Taxable income before specific deduction of $100 (see instructions). Section 501(c) organizations sho
&@ amount ofnetinvestment income. . . a
b aggregate amount expended for an exempt function (attach schedule) JF Byi
18 Less specific deduction of $100 (not allowed for newsletter funds defined under section 527(@) - . Ls
—119_Taxable income (subtract line 18 from line 17¢) 19
20 Income tax (see instructions). . . So ee ee ee L220
21 Credits (Attach all applicable forms) (see instructions) . ee ee ee PE
22 Totaltax(subtractline21fromline20) . . . . 1... rer a 24
Fy 23 Payments: a Tax deposited with Form 7004... . soe ‘|23a|
m4 b Credit from regulated investment companies ‘(attach Form. 2439) 23b
¢ Credit for Federal tax on fuels (attach Form 4136). .[23¢.
d Total (add lines 23a through 23c). . . . . [23d
24 Tax due (subtract line 23d from line 22). See instruction F3 for or depositary method of payment. » . Lea
25 Overpayment (subtract line 22 fromline 23d)... os | 28

1 At any time during the tax year, did the organization have an interest in or a signature or other authority over a financial account in a

3 5 foreign country (such as a bank account, securities account, or other financial account)? (See instructions.) . . Oyes ONo
5 3 If “Yes,” anter the name of the foreign country »-
2 E 2 Was the organization the grantor of, or transferor to, a foreign trust that existed during the current tax
zg 2 year, whether or not the organization has any beneficial interestinit? . . . . =. 1... . . + « ()Yes CINo
<= If "Yes," the organization may have to file Form 3520, 3520-A, or 926.
3 Enter the amount of tax-exempt interest received or accrued duringthetaxyear_. . . . >| $ |
Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
Please | beliet, itis true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Here [> Signature of officer Date » Title
Pald Proparer’s py Date Check it Preparers social security no,
a signature self-employed » CJ :
Preparer’s os
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Use Only | yours,ifseitemployed) 7
and address ZIP code >



Form 1120-POL (1990)

Page 2

General Instructions

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

The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time
is;

Recordkeeping . . 14hrs., 35 min,
Learning about the

laworthe form . 6 hrs., 23 min.
Preparing the form » 15 hrs., 17 min.
Copying, assembling,

and sending the

formtoIRS . 2 hrs., 25 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form more
simple, we would be happy to hear from
you. You can write to both the Internal
Revenue Service, Washington, DC 20224,
Attention: IRS Reports Clearance Officer,
T:FP, and the Office of Management and
Budget, Paperwork Reduction Brolect
(1545-0129), Washington, DC 20503.

DO NOT send the tax form to either of
these offices. Instead, see the instructions
on page 3 for information on where to file.

Important Change

New Form 8826, Disabled Access Credit,
has been developed as a result of the
addition of section 44 by the Revenue
Reconciliation Act of 1990. This allows
eligible small businesses to claim a new
nonrefundable income tax credit equal to
50% of the expenses that are over $250
and not more than $10,250. These
expenses must be paid or incurred after
November 5, 1990, to enable a small
business to comply with the requirements
of the Americans with Disabilities Act of
1990. An eligible smal! business is one with
gross receipts of $1 million or less in the
previous tax year or one that had not more
than 30 full-time employees in the
preceding tax year. Examples of expenses
eligible for the credit include amounts paid
or incurred: (1) to remove barriers that
prevent a business from being accessible to,
or usable by, individuals with disabilities;
(2) to provide qualified interpreters or other
methods of making audio materials
available to hearing-impaired individuals;
(3) to provide qualified readers, taped text,
and other methods of making visual
materials available to individuals with visual
Impairments; or (4) to acquire or modify
equipment or devices for individuals with
disabilities.

A. Purpose of Form.—Form 1120-POL is
usedto reportthe taxable incomeand income
tax liability of political organizations (including
principalcampaign committees), newsletter
funds, and certain exempt organizations.

B. Who Must File

1. A political organization must file Form
1120-POL if the organization has any
political organization taxable income. A
political organization is a party, committee,
association, fund (including a separate
segregated fund described in section
527(f)(3) set up by a section 501(c)
organization), or other organization,
organized and operated primarily for the
purpose of accepting contributions or
making expenditures, or both, to influence
the selection, nomination, election, or
appointment of any individual to any public
office or office in a political organization, or
the election of Presidential or Vice-
Presidential electors.

Taxable Income of a Political

Organization. —Taxable income of a
political organization is the excess of:

@ gross income for the tax year (excluding
exempt function income) over:

e deductions that are directly connected
with the earning of gross income and
computed with the following adjustments.
a. a special deduction of $100 is allowed,
b. the net operating loss deduction is not
allowed;

¢. the dividends-received deduction and
other special deductions for corporations
are not allowed. See Regulations sections
1.527-4 and 5.

Exempt Function Income,—Exempt
function income is the total of ail amounts
received from the following sources (to the
extent they are segregated for use only for
an exempt function):

a. contributions of money or property

b. membership dues, fees, or assessments
paid by members of a political party,

c. 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, or

d. proceeds from conducting a bingo game,
as defined in section 513(f)(2).

Exempt Functlon.—The exempt function
ina political organization is 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
ofa political organization, or the election of
Presidential or Vice Presidential electors,
whether or not the individual or electors are
selected, nominated, elected, or appointed.
The term exempt function also means the
making of expenditures related to the
individual's office, once selected, elected,
or appointed, but only if the expenditures
would be deductible by the individual under.
section 162(a).

2. A newsletter fund must file Form
1120-POL if it has political organization
taxable income. A newsletter fund is a fund
established and maintained by an individual
who holds, has been elected to, or is a
candidate (as defined in section 527(gX3))
for nomination or election to any Federal,
state, or local elective public office for use
by such individual exclusively for the
preparation and circulation of such
individual's newsletter.

Taxable income for a Newsletter Fund.—
Taxable income for a newsletter fund is
computed in the same manner as taxable
income of a political organization is
computed with one exception. The specific
deduction of $100 is not allowed.

3. Organizations described in section
501(c) and exempt from tax under section
501 (a) must file Form 1120-POL if they
have political organization taxable income.
Taxable Income for a Tax-Exempt
Organization.—Political organization
taxable income of an organization exempt
from tax under section 501(c) is the lesser
of:
the amount spent for an exempt function
during the tax year either directly or
indirectly through another organization, or
@ 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, 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 the deductions directly
connected with the production of this
income. The political organization taxable
income of an exempt organization is subject
to the same adjustments as those of a
political organization (see instruction B1
above).

Note: A separate segregated fund
maintained by a section 501(c) organization
is treated as a separate entity and is taxed as
a political orgariization. For more
information, see section 527(f), Regulations
section 1,527-6, and the definitions.

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

(1) the name and address of the
candidate;

(2) the candidate's identifying number;

(3) the candidate's party affiliation and
the office sought;

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

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

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


Form 1120-POL (1990)

Page 3

If a candidate has only one political
campaign committee, no designation is
required. However, be sure to check the
appropriate box on page 1 of Form 1120-

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

Period Covered.—File the 1990 return for
calendar year 1990 and for fiscal years that
begin in 1990 and end in 1991. Fora fiscal
year return, fill in the tax year space at the
top of the form.

Final Return, Change In Address,
Amended Return.—'f this is a final return,
or the organization's address has changed
since the previous return was filed, or the
organization is filing an amended return,
check the appropriate block. Form 8822,
Change of Address, can be filed to notify
IRS of a change of address that occurs after
the return is filed,

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 P.O, box number
instead of the street address.

D. Where To File

Ifthe political
organization's main
office is located in

Use the following
Internal Revenue
Service Center address
Vv

New Jersey, New York (New
York City and counties of
Nassau, Rockland, Sutfolk,
and Westchester)

New York (all other counties),
Connecticut, Maine,

New Hampshire,
Rhode Island, Vermont

Florida, Georgia,
South Carolina

Kansas, New Mexico,
Oklahoma, Texas

Holtsville, NY 00501

Andover, MA 05501

Atlanta, GA 39901

Austin, TX 73301

Indiana, Kentucky, Michigan,
Ohio, West Virginia

Illinois, lowa, Minnesota,
Missouri, Wisconsin

Alabama, Arkansas,
Louisiana, Mississippi,
North Carolina, Tennessee

‘Alaska, Arizona, California
{counties of Alpine, Amador,
jute, Cala

Cincinnati, OH 45999

Kansas City, MO 64999

‘Memphis, TN 3750}

weras, Colusa,

Contra Costa, Del Norte, E!
Dorado, Glenn, Humboldt,
Lake, Lassen, Marin,
Mendocino, Modoc, Napa,

fa, Placer, Plumas,
Sacramento, San Joaquin,
Shasta, Sierra, Siskiyou,
Solano, Sonoma, Sutter,
Tehama, Trinity, Yolo, and
Yuba), Colorado, Idaho,
Montana, Nebraska, Nevada,
North Dakota, Oregon, South
Dakota, Utah, Washington,
Wyoming

Ogden, UT 84201

California (all other

counties), Hawaii Fresno, CA 93888

Delaware, District of
Columbia, Maryland,

Philadelphia, PA 19255
Pennsylvania, Virginia

E, Signature

The return must be signed and dated by the
president, vice-president, treasurer
assistant treasurer, chief accounting
officer, or any other organization 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.

\f an organization officer filled in Form
1120-POL, the Paid Preparer’s space under
“Signature of officer” should remain blank.
lf 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., should not 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:

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

F. Figuring and Paying the Tax

1, Accounting

Accounting Methods. —Taxable income
generally must be computed using the
method of accounting regularly used in
keeping the organization’s books and
tecords. In all cases, the method used must
glea rly reflect taxable income. See section

Unless the law specifically permits
otherwise, the organization may change the
method of accounting from that 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 Pub, 538, Accounting
Periods and Methods.

Change in Accounting Period. —
Generally, before changing an accounting
period, the Commissioner's approval must
be obtained (Regulations section 1.442-1)
by filing Form 1128, Application To Adopt,
Change, or Retain a Tax Year Also see Pub.

2. 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

3. Depositary Method of Tax
Payment.—The organization must pay the

tax due in full when the return is filed but no
later than the 15th day of the third month
after the end of the tax year.

Deposit organization income tax
payments with a Federal Tax Deposit
Coupon (Form 8109). Be sure to darken
the “1120” box on the coupon. Make these
tax deposits with either a financial
institution qualified as a depositary for
Federal taxes or the Federal Reserve bank
or branch servicing the geographic area
where the organization is located. Do not
submit deposits directly to an IRS office;
otherwise, the organization may be subject
toa failure to deposit penalty. Records of
deposits will be sent to IRS for crediting to
the organization's account. See the
instructions contained in the coupon book
(Form 8109) for more information.

To help ensure proper crediting to your
account, write your employer identification
number, “Form 1120-POL,” and the tax
period to which the deposit applies on your
check or money order

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

Apenalty may be imposed for failure to
deposit the required amount of tax. See
section 6656.

For more information concerning
deposits, see Pub. 583, Taxpayers Starting
a Business.

4, Penalties. —An organization may be
subject to interest and penalty charges if
the organization files a late return or fails to
pay tax when due unless it can show that
the failure to file or pay was due to
reasonable cause and not willful neglect.

Interest is charged on taxes not paid by
the due date even if an extension of the
time to file is granted. Interest is also
charged on penalties imposed for failure to
file, negligence, fraud, gross valuation
overstatements, and substantial
understatements 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.

An organization that fails to file its tax
return when due (including extensions of
time for filing) may be subject to a penalty
of 5% of the unpaid tax for each month or
part of a month the return is late, up toa
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.

An organization that fails to pay the tax
when due may be subject to a penalty of ¥2
of 1% of the unpaid tax, for each month or
part of a month the tax is unpaid. The
penalty cannot exceed 25% of the amount
due. This penalty may also apply to any
additional tax not paid within 10 days of the
date of the notice and demand for payment.
Attachments.—Attach Form 4136, Credit
for Federal Tax on Fuels, after page 1, Form
1120-POL. Attach schedules in alphabetical
order and other forms in numerical order
after Form 4136, To assist us in processing
the return, we ask that you complete every
applicable entry space on Form 1120-POL.
Please do not write ‘See attached” in lieu of
completing the entry spaces.