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

for Certain Political Organizations Form 1120-POL

For Paperwork Reduction Act Notice, see instructions on page 2.

Department of the Treasury

Internal Revenue Service

For calendar year 1994 or other tax year beginning , 1994, and ending , 19 .

Note: If you are a section 501(c) organization or a separate segregated fund described in section 527(f)(3), check here ©

Name of organization Employer identification number

Number, street, and room or suite no. (If a P.O. box, see page 4 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

Please print or type

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. ©

Check applicable boxes:

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 20 (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, do not file Form 1120-POL.) 19

20 Income tax (see instructions) 20

21 Tax credits (Attach all applicable forms.) (see instructions) 21

22 Total tax. Subtract line 21 from line 20 22

23 Payments: a Tax deposited with Form 7004 23a

Tax

b Credit from regulated investment companies (attach Form 2439) 23b

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

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

24 Tax due. Subtract line 23d from line 22. See instructions on page 3 for depositary method of payment 24

25 Overpayment. Subtract line 22 from line 23d 25

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 foreign country (such as a bank account, securities account, or other financial account)? (See instructions.)

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

Was the organization the grantor of, or transferor to, a foreign trust that existed during the current tax

year, whether or not the organization has any beneficial interest in it? 

2

Additional

Information

If ‘‘Yes,’’ the organization may have to file Forms 926, 3520, or 3520-A.

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

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge Please 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 social security no. Preparer’s

signature

Check if

self-employed ©

Firm’s name (or

yours, if self-employed)

and address

E.I. No. ©

ZIP code ©

Cat. No. 11523K

© ©

©

©

Paid

Preparer’s

Use Only

4 Date organization formed ©

Form 1120-POL (1994)

5a

c d

b

(1) Final return (2) Change of address (3) Amended return

Yes No

Yes No
Form 1120-POL (1994) Page 2

General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted.

Paperwork Reduction Act

Notice

The time needed to complete and file this

form will vary depending on individual

circumstances. The estimated average time

is:

Recordkeeping 15 hr., 32 min.

Learning about the

law or the form 6 hr., 23 min.

Preparing the form 15 hr., 18 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 both the Internal Revenue Service,

Attention: Tax Forms Committee, PC:FP,

Washington, DC 20224; and the Office of

Management and Budget, Paperwork

Reduction Project (1545-0129), Washington,

DC 20503. DO NOT send the tax form to

either of these addresses. Instead, see

Where To File on page 3.

Purpose of Form.—Form 1120-POL is used

to report the taxable income and income tax

liability of political organizations.

Who Must File

A political organization must file Form

1120-POL if the organization has any political

organization taxable income. 

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 a

6-month extension of time to file Form

1120-POL.

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.

Copying, assembling,

and sending the

form to the IRS 2 hr., 25 min.

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 principal campaign

committees, newsletter funds, and certain

tax-exempt organizations.

Principal Campaign Committees—A

principal campaign committee is the political

If a candidate for 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

the following information:

● The candidate’s name and address.

● The candidate’s party affiliation and office

sought.

● The district and state in which the office is

sought.

● The name and address of the principal

campaign committee.

Note: If the candidate for 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 Congress

has only one political campaign committee,

no designation is required. However, be sure

to check the appropriate box on Form

1120-POL.

Newsletter Fund—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(g)(3))

for nomination or election to any Federal,

state, or local elective public office. The fund

is maintained exclusively for the preparation

and circulation of the individual’s newsletter.

Tax-Exempt Organizations—A separate

segregated fund maintained by a section

501(c) organization (exempt from tax under

section 501(a)) is treated as a political

organization. For more information, see

section 527(f) and Regulations section

1.527-6.

Taxable Income—Taxable income of a

political organization is the excess of

(1) gross income for the tax year (excluding

exempt function income) over (2) deductions

directly connected with the earning of gross

income. Taxable income is figured with the

following adjustments:

1. A specific deduction of $100 is allowed.

2. The net operating loss deduction is not

allowed.

3. The dividends-received deduction and

other special deductions for corporations are

not allowed. See Regulations section 1.527-4.

Newsletter Fund Taxable Income—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.

Tax-Exempt Organization Taxable

Income—Taxable income of a tax-exempt

organization is the lesser of (1) the amount

Exempt Function—The exempt function of a

political organization is the function of

influencing or attempting to influence the

selection, the nomination, election, or

appointment of any individual to any Federal,

state, or local public office, or office of a

political organization, or 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 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—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):

1. Contributions of money and property.

2. Membership dues, fees, or assessments

paid by a member of a political party.

3. 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.

4. Proceeds from the conduct of a bingo

game, as described in section 513(f)(2).

Political Organizations

Net investment income, for this purpose, is

(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.

● The candidate’s identifying number.

If the due date falls on a Saturday, Sunday,

or legal holiday, the organization may file on

the next business day.

A Change To Note

Some political organizations are required to

use a new method of depositing taxes for

taxes due after 1994. Generally, the

requirement applies to political organizations

whose total deposits of certain taxes during

calendar year 1993 exceeded $78 million.

Other organizations may use the new method

voluntarily. For details, see Depositary

Method of Tax Payment on page 3.

Where To File

Use the following

Internal Revenue

Service Center address

If the political

organization’s main

office is located in

Ä Ä

New Jersey, New York (New

York City and counties of

Nassau, Rockland, Suffolk,

and Westchester)

Holtsville, NY 00501

New York (all other counties),

Connecticut, Maine,

Massachusetts,

New Hampshire,

Rhode Island, Vermont

Andover, MA 05501

committee designated 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

and section 527(h).

spent for an exempt function during the tax

year either directly or indirectly through

another organization or (2) the net investment

income of the organization for the tax year.

This income is subject to the adjustments

under Taxable Income above.
Form 1120-POL (1994) Page 3

Florida, Georgia,

South Carolina Atlanta, GA 39901

Kansas, New Mexico,

Oklahoma, Texas Austin, TX 73301

Indiana, Kentucky, Michigan,

Ohio, West Virginia Cincinnati, OH 45999

Illinois, Iowa, Minnesota,

Missouri, Wisconsin Kansas City, MO 64999

Alabama, Arkansas,

Louisiana, Mississippi,

North Carolina, Tennessee

Memphis, TN 37501

Alaska, Arizona, California

(counties of Alpine, Amador,

Butte, Calaveras, Colusa,

Contra Costa, Del Norte, El

Dorado, Glenn, Humboldt,

Lake, Lassen, Marin,

Mendocino, Modoc, Napa,

Nevada, Placer, Plumas,

Sacramento, San Joaquin,

Shasta, Sierra, Siskiyou,

Solano, Sonoma, Sutter,

Tehama, Trinity, Yolo, and

Yuba), Colorado, Idaho,

Montana, Nebraska, Nevada,

North Dakota, Oregon, South

Dakota, Utah, Washington,

Wyoming

Ogden, UT 84201

California (all other

counties), Hawaii Fresno, CA 93888

Delaware, District of

Columbia, Maryland,

Pennsylvania, Virginia

Philadelphia, PA 19255

Who Must Sign

If an organization officer completed Form

1120-POL, the Paid Preparer’s space should

remain blank. Anyone who prepares Form

1120-POL but does not charge the

organization should not sign the return.

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, by hand, in the space

provided for the preparer’s signature

(signature stamps and labels are not

acceptable).

● Give a copy of the return to the taxpayer.

Accounting Methods

Taxable income must be computed using the

method of accounting regularly used in

keeping the organization’s books and

records. Generally, permissible methods

include the cash, accrual, or any other

method authorized by the Internal Revenue

Code. In all cases, the method used must

clearly show taxable income.

Generally, an accrual basis taxpayer can

deduct accrued expenses in the tax year in

which all events that determine the liability

Generally, the organization may change the

method of accounting used to report taxable

income (for income as a whole or for any

material item) only 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 show amounts on the

return and accompanying schedules as whole

dollars. 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.

Depositary 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. Deposit

organization income tax payments with Form

8109, Federal Tax Deposit Coupon. Do not

send deposits directly to an IRS office. Mail

or deliver the completed Form 8109 with the

payment to a qualified depositary for Federal

taxes or to the Federal Reserve bank (FRB)

servicing the organization’s geographic area.

Make checks or money orders payable to that

depositary or FRB.

To help ensure proper crediting, write the

organization’s employer identification number,

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.

A penalty may be imposed if the deposits

are mailed or delivered to an IRS office rather

than to an authorized depositary or FRB.

For more information on deposits, see the

instructions in the coupon booklet (Form

8109) and Pub. 583, Taxpayers Starting a

Business.

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 a

qualified depositary or FRB.

Interest and Penalties

Interest.—Interest is charged on taxes not

paid by the due date 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.

Late filing of return.—An organization that

does not file its tax return by the due date,

including extensions, may have to pay 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.

Late payment of tax.—An organization that

does not pay the tax when due 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. This penalty may also apply to

any additional tax not paid within 10 days of

the date of the notice and demand for

payment. The penalty will not be imposed if

the organization can show that the failure to

pay on time was due to reasonable cause.

Specific Instructions

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. Receivers, trustees, and

assignees must also sign and date any return

filed on behalf of an organization.

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. 538.

Attachments

To assist us in processing the return,

please 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. Use the

same size and format as on the printed

forms. But show your 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.

Other penalties.—Other penalties can be

imposed for negligence, substantial

understatement of tax, and fraud. See

sections 6662 and 6663.

Under the accrual method, an amount is

includible in income when all the events have

occurred that fix the right to receive the

income and the amount can be determined

with reasonable accuracy. See Regulations

section 1.451-1(a) for details.

File the 1994 return for calendar year 1994

and fiscal years that begin in 1994 and end in

1995. For a fiscal year, fill in the tax year

spaces at the top of the form.

Period Covered

Note: The 1994 Form 1120-POL may also be

used if (1) the organization has a tax year of

less than 12 months that begins and ends in

1995 and (2) the 1995 Form 1120-POL is not

Generally, political organizations whose

total deposits of withheld income, social

security, and Medicare taxes during calendar

year 1993 exceeded $78 million are required

to deposit all depositary taxes due after 1994

by electronic funds transfer (EFT). TAXLINK,

an electronic remittance processing system,

must be used to make deposits by EFT.

have occurred, the amount of the liability can

be figured with reasonable accuracy, and

economic performance takes place with

respect to the expense. 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.

Political organizations who are not required to

make deposits by EFT may voluntarily

participate in TAXLINK. For more information

on TAXLINK, see Rev. Proc. 94-48, 1994-29

I.R.B. 31. You may also call the toll-free

TAXLINK HELPLINE at 1-800-829-5469.
Form 1120-POL (1994) Page 4

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.

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.

Also include on line 7 those expenditures that

were illegal. Attach a schedule listing all

income and expenditures included on line 7.

See Regulations section 1.527-5 for examples

of these types of expenditures.

7.

8.

9.

10.

Note: Estimated tax, alternative minimum tax,

and environmental tax do not apply to political

organizations.

Line 21, Credits.—The organization may

qualify for the following credits:

Foreign tax credit. See Form 1118, Foreign

Tax Credit—Corporations.

Possessions tax credit. See Form 5712,

Election To Be Treated as a Possessions

Corporation Under Section 936, and Form

5735, Possessions Corporation Tax Credit

Allowed Under Section 936.

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). 

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.

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.

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.

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 by

35% and enter the result on line 20.

Enter the total amount of these credits on

line 21 and attach the appropriate forms.

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.

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 as

follows:

Enhanced oil recovery credit. See Form

8330, Enhanced Oil Recovery Credit, and

section 43.

Enter line 1 or $50,000,

whichever is less

Enter taxable income (line 19,

Form 1120-POL)

Employer Identification Number (EIN).—

Show the correct EIN in the space provided.

If the organization does not have an EIN, it

should apply for one on Form SS-4,

Application for Employer Identification

Number. Form SS-4 can be obtained at most

IRS or Social Security Administration (SSA)

offices. 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 more information.

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 1994 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.

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.

If “Yes” is checked for this question, file

Form TD F 90-22.1 by June 30, 1995, with

the Department of the Treasury at the

address shown on the form. Form TD F

90-22.1 is not a tax return, so do not file it

with Form 1120-POL.

You can get Form TD F 90-22.1 from an

IRS Distribution Center or by calling our

toll-free number 1-800-TAX-FORM

(1-800-829-3676).

Also, if “Yes” is checked for this question,

write the name of the foreign country or

countries. Attach a separate sheet if

necessary.

Question 3

In the space provided, show any tax-exempt

interest received or accrued. Include any

exempt-interest dividends received as a

shareholder in a mutual fund or other

regulated investment company.

Final Return, Change of Address, Amended

Return.—If the organization ceases to exist,

check the “Final return” box. To amend a

previously filed Form 1120-POL, file a

corrected Form 1120-POL and check the

“Amended 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.

Address.—Include the suite or 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.

Qualified electric vehicle credit. See Form

8834, Qualified Electric Vehicle Credit, and

section 30.

Renewable electric production credit. See

Form 8835, Renewable Electricity Production

Credit, and section 45.

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

If the organization has changed its address

since it last filed a return, check the box for

“Change of address.”

Printed on recycled paper

Note: Investment credit and jobs credit do

not apply to political organizations.

available at the time the organization is

required to file its return. However, the

organization must show its 1995 tax year on

the 1994 Form 1120-POL and must

incorporate any tax law changes that are

effective for tax years beginning after 1994.

Section 501(c) organizations: Complete lines

17a and 17b if the organization made exempt

function expenditures that were not from a

separate segregated fund. Enter the lesser of

line 17a or 17b on line 17c. See Tax-Exempt

Organization Taxable Income on page 2 for

a description of the amounts to enter on

these lines.

Line 22.—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 Pub. 535, Business

Expenses, to figure the recapture for the

qualified electric vehicle credit.