Form 1120-POL (1991)

Page 4

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.

4. 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. 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 (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, 1992, 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.

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, or a 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.
Include 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 on a reasonable and consistent
basis; only the portion allocable to the
production of political organization taxable
income may be deducted. No deduction is
allowed for general administrative or indirect
expenses.

Line 7, Other income and nonexempt
function expenditures.—Enter the 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 listing 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 on
page 2.

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) oF line 17(b).

Line 20, income tax.—The rate of tax
imposed depends on whether the political
organization is a principal campaign
committee as defined in section 527(h). The
tax rate is lower for a principal campaign
committee.

Political organization not a principal
campaign committee.—An organization that
is not a principal campaign committee
computes its tax on political organization
taxable income as follows: Multiply line 19 by
34% and enter the result on line 20.

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:

. Enter taxable income (line 19,
Form 1120-POL), .

n

Enter the smaller of line 1 or
$50,000 . :

Subtract line 2 from line 1

a9

Enter the smaller of line 3 or
$25,000 .

. Subtract line 4 from line 3
. Enter 15% of line 2.

5.
6.

7. Enter 25% of line 4.
8. Enter 34% of line 5 .
9.

If ine 1 1s 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
1120-POL :

Note: Estimated tax, alternative minimum
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.

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.

Creait 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.

Enhanced oil recovery credit. See Form
8330, Enhanced Oil Recovery Credit, and
section 43

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


11 20-POL U.S. Income Tax Return OMB No. 1545-0129
on ect ofthe Teasuy for Certain Political Organizations 1991
Internal Revenue Service
For calendar year 1991 or other tax year beginning »1991, and ending :
Note: If you are a section 501(c) organization or a separate segregated fund described in section 527(f\(3), check here |. O
3 Name of organization Employer identification number
= | Number, street, and room or suite no. (If a P.O. box, see page 2.) Candidates for U.S. Congress Only
= If this is a pnncipal campaign committee, and it is the
° ONLY political committee, check here .O
| City or town, state, and ZIP code If this s a pancipal campaign committee, but is NOT the
3 : nly poiical commiee, check here an attach a copy of
a designation (See instructions on page 2.). 0
The books are in care of m ... Enter name of candidate » __
Located at > Telephone No. >
Check applicable boxes: (1) L] Final return (2) [.] Change in address _(3) .] Amended return
14 Dividends (attach schedule) 1
2 Interest . 2
@| 3 Gross rents. 3
E | 4 Gross royalties ce ee ee LA
| 5 Capital gain net income (attach Schedule D (Form, 4120)) a  :)
| 6 Net gain or (loss) from Form 4797, Part Il, line 18 (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 . a 9
40 Repairs. |. ee ee fi
1 ee
12 Taxes, ee FB
2| 13 Interest... i
31 14 Depreciation fattach Form 4562). ee ee L4
8] 45 Other deductions (attach schedule). 2 2 2 2. ee ee ee LS
3/16 Total deductions (add lines 9 through 15). . . toe ee ee LE
©} 47 Taxable income before specific deduction of $100 (see instructions). Section 50t(0 ) ‘organizations show:
a amount of net investment income. . a an
b aggregate amount expended for an exempt “function (attach ‘schedule) a an 17¢
18 Less specific deduction of $100 (not allowed for newsletter funds defined under section 527(Q)) aan 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). 2 2 2 2. ee ee LO
21. Credits (Attach all applicable forms.) (see instructions) . . . . . . ...... . Let
22. Total tax (subtract line 21 fromline 20)... ee
x | 23 Payments: a Tax deposited with Form 7004. . . 23a
& b Credit from regulated investment companies (attach Form 2439). 23b
c 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 instructions on page 3 for cepostay ‘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
c foreign country (such as a bank account, securities account, or other financial account)?(See instructions.). . OlYes LINo
2 If “Yes,” enter the name of the foreign country >
£ 2 Was the organization the grantor of, or transferor to, a foreign trust that existed during the current tax year, whether
3 or not the organization has any beneficial interest in it? . 2. Coe . . . CyYes [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 during the tax year. >

4 Date organization formed

Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge

Please | and beliet, 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

Preparer’s Date Check if Preparer’s social security no.
Paid signature self-employed » [_] :

reparer’s Finn's name (or
E. No.

Use Only | yours, if self-employed) oF

and address ZIP code >

For Paperwork Reduction Act Notice, see instructions on page 2. Cat. No. 11523K Form 1120-POL (1991)


Form 1120-POL (1991)

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 . 14 br, 35 min.
Learning about the

law or the form . 6 hr., 23 min
Preparing the form . 15 hr., 17 min.
Copying, assembling,

and sending the

form to IRS . 2 hr., 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 Project (1545-0129),
Washington, DC 20503. DO NOT send the
tax form to either of these offices. Instead,
see the instruction 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 (including
principal campaign committees, newsletter
funds, and certain exempt organizations).

Who Must File

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:

© 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, and

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

Exempt Function Income.—Exempt function
income is the total of all 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,

¢. 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 Function.—The exempt function of a
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 of 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.
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
462(a).

Types of Political Organizations

A newsletter fund.—A newsletter fund is a
fund established and maintained by an
individual who holds, has been elected to, or
1s a candidate (as defined in section 527(9)(3))
for nomination or election to any Federal,
state, or local elective public office for use by
that individual exclusively for the preparation
and circulation of that 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, except the
specific deduction of $100 is not allowed.
Taxable Income for a Tax-Exempt
Organization.—Political organization taxable
income of an organization described in
section 501(c) and exempt from tax under
section 501(a) 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 the instructions for Taxable
Income of a Political Organization, above).
Note: A separate segregated fund maintained
by a section 507(c) organization is treated as
a separate entity and is taxed as a political

organization. For more information, see
section 527(f) and Regulations section
1.527-6
Principal Campaign Committee.—A principal
campaign committee is the political
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).
If a candidate for Congress elects to make
a designation under section 527(h), he or she
must 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:
@ the name and address of the candidate;
© the candidate's identifying number;
© the candidate’s party affiliation and the
office sought;
© the district and state in which the office is
sought; and
@ the name and address of the principal
campaign committee.
Note: 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
of the earlier 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 has only one political
campaign committee, no designation is
required. However, be sure to check the
appropriate box on Form 1120-POL.

When To File

In general, an organization must file Form
4120-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 1991 return for
calendar year 1991 and for fiscal years that
begin in 1991 and end in 1992. For a fiscal
year return, fill in the tax year space at the
top of the form.

Final Return, Change in Address, Amended
Return.—tf 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.


Form 1120-POL (1991)

Page 3

Where To File

If the political
organization's main
office is located in

ww

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

Use the following
Internal Revenue
Service Center address

ww

Holtsville, NY 00501

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

New Hampshire,

Rhode Island, Vermont

Andover, MA 05501

Florida, Georgia,

South Caroline Atlanta, GA 39901

Kansas, New Mexico,

Oklahoma, Texas Austin, TX 73301

Indiana, Kentucky, Michigan,

Oho, West Virgina Cincinnati, OH 45999

Illinois, lowa, Minnesota,

Missoun, Wisconsin Kansas City, MO 64999

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

Memphis, TN 37501

Alaska, Anzona, 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, Yoio, 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

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.

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.,
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
IRS.

Figuring and Paying the Tax
Accounting

Accounting Methods.—Taxable income
generally must be computed using the
method of accounting regularly used in
keeping the organization's books and
records. In all cases, the method used must
clearly reflect taxable income. See section
446.

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. 538.
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.

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 3rd month after the end of
the tax year.

Deposit organization income tax payments
with a Federal Tax Deposit Coupon (Form
8109). Do not submit deposits directly to an
IRS office. Mail or deliver the completed
Federal Tax Deposit Coupon (Form 8109) and
the payment to a qualified depositary for
Federal taxes or to the Federal Reserve bank
(FRB) servicing your geographic area. Make
checks or money orders payable to that
depositary or FRB. 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. Be sure to
darken the "1120" box on the coupon.
Records of deposits will be sent to the IRS
for proper crediting to your account.

‘A penalty may apply for failure to deposit
the required amount of tax. See section 6656.
A penalty may also apply if you mail or deliver
deposits to an IRS office rather than to
authorized depositaries or to FRBs.

For more information about deposits, see
the instructions contained in the coupon book
(Form 8109) and Pub. 583, Taxpayers
Starting a Business.

Interest and Penalties

Interest.—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
overstatement, 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

Late Filing of return.—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 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 a timely return was due to reasonable
cause. Those filing late (after the due date
including extensions) must attach a statement
to the return explaining the reasonable cause.

Late payment of tax.—The penalty for late
payment of taxes is usually /% 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. Please complete every applicable
entry space on Form 1120-POL. Do not write
“See attached” instead of completing the
entry space.

If 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. Also, show the information called
for on the form 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 (EIN) 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
Number. 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.