Form 1120-POL (1984)

Page 4

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,
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.

H. Period Covered.—File the 1984
return for calendar year 1984 and fiscal
years that begin in 1984 and end in 1985.
For a fiscal year, fill in the tax year space at
the top of the form.

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

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

J. Change in Accounting Period.—
Before changing an accounting period, the
Commissioner's approval must be obtained
(Regulations 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.— Money items may be shown
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 an 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:

@ 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.

Tax return preparers should be familiar
with their responsibilities. 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 at a 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 to a
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. 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.

R. Credits.—The organization may
qualify for the following credits:

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

Research credit. See Form 6765, Credit
for Increasing Research Activities, and
section 30.

Possessions Tax Credit. See Form 5712,
Election to be Treated as a 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, Computation of Possessions
Corporation Tax Credit Allowed Under
Section 936.

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.

Alcohol fuel credit. The organization may
be able to take a credit for alcohol used asa
fuel. See Form 6478, Credit for Alcohol
Used As Fuel, and section 40(a).

Enter the total amount of credits on line
22, and attach the appropriate forms.

S. 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 $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 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 bank account, securities account, or
other financial account in a foreign country.

If “Yes” is checked for Question 1, file
Form TD F 90-22.1 by June 30, 1985, 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
the IRS.

Form TD F 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.


U.S. Income Tax Return '
| 1 20-POL for Certain Political Organizations ee

Department of the Treasury > Page 2s blank. 1 9g 4

Internal Revenue Service To be filed by those organizations having taxable income (line 19).

For calendar year 1984 or other tax year beginning , 1984 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 > CJ .
Name of organization Employer identification number (see instruction 0)
‘Number and street Date organization formed

City or town, State and ZIP code (See instruction B2)

If this is a principal campaign committee, and this is
the ONLY political committee, checkhere.. . B L_]

Please print or

If this is a principal campaign committee, but is NOT
the only political committee, check here... _L_1

Enter name of candidate > ___ The books are in care of >
Located at > Telephone No. >
1 Dividends (attach schedule) .

2 Interest

3 Gross rents

4 Gross royalties.

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

6 Net gain or (loss) from Part Il, Form 4797, (attach Form 4797) .

7 Other income (see ‘‘Note”’ in instruction D—attach schedule) .

8 Total income (add lines 1 through 7)

9 Salaries and wages woe

Gross Income

10 Repairs
11 Rents
12 Taxes
o 13 Interest .
4 14 Depreciation from Form 4562 (attach Form 4562) .
3 15 Other deductions (attach schedule) .
3 16 Total deductions (add lines 9 through 15) . :
8 17 Taxable income before specific deduction of $100 (line 8 less line 1216). Section 0 501(6) 6 organizations show:
(a) amount of net investment income (see instruction A3(bX{ii)) . ©. |. Leelee '
(b) an aggregate amount expended for an exempt function (attach schedule) > _
and enter online 17, the lesserof(a)or(b) . . . . . 17
18 Less specific deduction of $100 (not allowed for newsletter funds defined under section 52718) « . £18
19 Taxable income (subtractline 18 fromline17). . . . . . . . . ~. 419
20 Tax imposed (see instructionB) - - - » » £20
21 Income tax (line 20 or alternative tax from Schedule | D (Form 1 120), line 1, whichever i is siess). . . L2r
22 Credits—(see instructionR) . . . Be ee ee ee E22
4/23 Total tax—Subtract line 22 from line 21 ee
| 24 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 soe L258
26 Overpayment (subtract line 23 fromline24) . . . . 26 |
é 2 #2 1 At any time during the tax year, did you have an interest in or a signature or other er authority 0 over a bank
= 5 3 = account, securities account, or other financial account in a foreign country (see instruction S)?. . . oO Yes O No
& 3 ss 2 > Were you the grantor of, or transferor to, a foreign trust which existed during the current tax year,
g s = whether or not you have any beneficial interest init?. . rs Yes O No
eee If “Yes,"’ you may have to file Forms 3520, 3520-A or 926.
Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
Please | delet, itistrue, 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 Pix
mid Prgms > Date ster - Preparer’s soa secur no.
Prepare’ Firm's name (or EI.No. > i
seen | anager a code

For Paperwork Reduction Act Notice, see instructions on page 3. Form 1120-POL 1984)




Form 1120-POL (1984)

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
Internal 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 nght 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 Regulations 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) If 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 C below.

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

2. 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.

If a candidate for Congress elects to
make a designation under section 527(h),
he or she shall designate his or her principal
campaign committee by attaching a copy of
his or her Statement of Candidacy. 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) name and address of the

candidate for Congress;

(2) taxpayer identification number;

(3) party affiliation and the office sought;

(4) district and State in which the

office is sought; and

(5) name and address of the

principal campaign committee.

This designation must be attached to
Form 1120-POL and may be made only by a
candidate for Congress. If a designation is in
effect from an earlier tax year, attach a copy
to Form 1120-POL for this year, and check
the appropriate box on the form.

If there is only one political committee
with respect to a candidate, no designation
is required. However, be sure to check the
appropriate box on the form.

Aprincipal campaign committee is
subject to a lower rate of tax than other
political organizations. Compute its tax as
follows:

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
For taxable income over $1,000,000, an
additional tax is im at the rate of 5%
of the excess over $1,000,000, or $20,250,

whichever is less.

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

‘#U.S. Government Printing Office: 1984—423-191 23-0016750

production of gross income (excluding

exempt function income) computed

with the following modifications:

(a) aspecific deduction of $100 is
allowed;

(b) a net operating loss deduction
(section 172) is not allowed; and

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

See Regulations sections 1.527-4 and
1.527-5.

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 Regulations section 1.527-3.

Note: /ncome 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
orgal ion, or the election of Presidential
or Vice-Presidential electors, whether or not
the individual or electors are selected,
nominated, elected, or appointed.

See Regulations section 1.527-2(c).
F. Where to File.—

If the political organiza
tion's main

Use the following inter-
nal Revenue Service
Center address

Vv

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

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

Alabama, Florida, Georgia,
Mississippi, South Carolina

Michigan, Ohio
Arkansas, Kansas, Louisiana,
New Mexico, Oklahoma, Texas

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

Mlinois, lowa, Missouri,

Holtsville, NY 00501

Andover, MA 05501

Atlanta, GA 31101

Cincinnati, OH 45999

Austin, TX 73301

Ogden, UT 84201

Wisconsin Kansas City, MO 64999
California, Hawaii Fresno, CA 93888
indiana, Kentucky, North

a
Carolina, Tennessee, Virginia,
West Virginia

Delaware, District of
Columbia, Maryland,
Pennsylvania

Memphis, TN 37501

Philadelphia, PA 19255,