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transmitted all R Action Date Signature
text files for this INSTRUCTIONS TO PRINTERS
cycle update? FORM 1120-POL, PAGE 1 of 6
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Date PERFORATE: ON FOLD Revised proofs

OMB No. 1545-0129
U.S. Income Tax Return
for Certain Political Organizations
Department of the Treasury
Internal Revenue Service 2005
For calendar year 2005 or other tax year beginning , 2005, and ending , 20 .
Check the box if this is a section 501(c) organization or a separate segregated fund described in section 527(f)(3) 䊳
Name of organization Employer identification number
Check if:
Final return
Number, street, and room or suite no. (If a P.O. box, see page 5 of instructions.) Candidates for U.S. Congress Only
Name change
If this is a principal campaign committee, and it is the
Address change ONLY political committee, check here
City or town, state, and ZIP code If this is a principal campaign committee, but is NOT
Amended return the only political committee, check here and attach a
copy of designation (See instructions on page 2.)

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
6 Net gain or (loss) from Form 4797, Part II, line 17 (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
17 Taxable income before specific deduction of $100 (see instructions). Section 501(c) organizations show:
a Amount of net investment income 䊳

b Aggregate amount expended for an exempt function (attach schedule) 䊳 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, see the instructions.) 19
20 Income tax. (See instructions) 20
21 Tax credits. (Attach the applicable credit forms.) (See instructions) 21
22 Total tax. Subtract line 21 from line 20 22

23 Payments: a Tax deposited with Form 7004

b Credit for tax paid on undistributed capital gains (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 4 for depository method of payment 24
25 Overpayment. Subtract line 22 from line 23d 25
1 At any time during the 2005 calendar year, did the organization have an interest in or a signature or other authority over a
financial account (such as a bank account, securities account, or other financial account) in a foreign country? (see instructions) Yes No
If “Yes,” enter the name of the foreign country 䊳

2 During the tax year, did the organization receive a distribution from, or was it the grantor of, or transferor
to, a foreign trust? If “Yes,” the organization may have to file Form 3520 Yes No
3 Enter the amount of tax-exempt interest received or accrued during the tax year 䊳 $
4 Date organization formed 䊳
5a The books are in care of 䊳 b Enter name of candidate 䊳
c The books are located at 䊳 d Telephone No. 䊳
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge 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.
䊳 䊳
May the IRS discuss this return
Here with the preparer shown below
Signature of officer Date Title (see page 3)? Yes No

Date Preparer’s SSN or PTIN
Paid Preparer’s Check if
signature self-employed

Firm’s name (or EIN
Use Only yours if self-employed),
Phone no. ( )
address, and ZIP code
For Privacy Act and Paperwork Reduction Act Notice, see instructions on page 6. Cat. No. 11523K Form 1120-POL (2005)
FORM 1120-POL, PAGE 2 of 6
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Form 1120-POL (2005) Page 2

Photographs of Missing ● Tax topics from the IRS telephone be either the Federal Election
response system. Commission’s Form 2 or an equivalent
Children statement filed with the Federal Election
● Fill-in, print and save features for most
The Internal Revenue Service is a proud tax forms. Commission. The designation may also
partner with the National Center for be made by attaching a signed statement
Missing and Exploited Children. ● Internal Revenue Bulletins.
with all of the following information:
Photographs of missing children ● Toll-free and email technical support.
● The candidate’s name and address.
selected by the Center may appear in Buy the CD-ROM on the Internet at
instructions on pages that would ● The candidate’s identifying number. from the National
otherwise be blank. You can help bring Technical Information Service (NTIS) for ● The candidate’s party affiliation and
these children home by looking at the $25, shipping and handling included, or office sought.
photographs and calling call 1-877-CDFORMS (1-877-233-6767) ● The district and state in which the
1-800-THE-LOST (1-800-843-5678) if toll free to buy the CD-ROM for $25 (plus office is sought, and
you recognize a child. a $5 handling fee). ● The name and address of the principal
By phone and in person. You can order campaign committee.
IRS E-Services Make Taxes forms and publications by calling Note. If the candidate for U.S. Congress
Easier 1-800-TAX-FORM (1-800-829-3676). You has a designation in effect from an
can also get most forms and earlier year, attach a copy of the earlier
Now more than ever before, certain publications at your local IRS office.
political organizations can enjoy the year’s designation to this year’s Form
benefits of meeting their federal tax filing 1120-POL and check the appropriate
and payment responsibilities General Instructions box on the form. See Regulations
electronically. Whether you rely on a tax Section references are to the Internal section 1.527-9. If a candidate for U.S.
professional or do it yourself, IRS offers Revenue Code unless otherwise noted. Congress has only one political
you convenient programs to make it campaign committee, no designation is
required. However, be sure to check the
easier. Purpose of Form appropriate box on Form 1120-POL.
Spend less time and worry on taxes. Political organizations and certain
Use e-file and Electronic Federal Tax 2. Newsletter fund, if it is a fund
exempt organizations file Form established and maintained by an
Payment System (EFTPS) to your benefit: 1120-POL to report their political individual who holds, has been elected
● For e-file, visit for organization taxable income and income to, or is a candidate (as defined in
additional information. tax liability under section 527. section 527(g)(3)) for nomination or
● For EFTPS, visit or call election to any federal, state, or local
EFTPS Customer Service at Who Must File elective public office. The fund must be
1-800-555-4477. A political organization, whether or not it maintained exclusively for the
Use the electronic options available is tax-exempt, must file Form 1120-POL preparation and circulation of the
from IRS and make filing and paying if it has any political organization taxable individual’s newsletter.
taxes easier. income. 3. Separate segregated fund, if it is
An exempt organization that is not a maintained by a section 501(c)
How To Get Forms and political organization must file Form organization (exempt from tax under
1120-POL if it is treated as having section 501(a)). For more information,
Publications political organization taxable income see section 527(f)(3) and Regulations
Internet. You can access the IRS under section 527(f)(1). section 1.527-6(f).
website 24 hours a day, 7 days a week
at to: Political Organizations Taxable Income
● Download forms, instructions, and A political organization is a party, Political organization taxable income
publications. committee, association, fund (including a (line 19) is the excess of (a) gross
● Order IRS products online. separate segregated fund described in income for the tax year (excluding
section 527(f)(3) set up by a section exempt function income (defined below))
● See answers to frequently asked tax 501(c) organization), or other
questions. over (b) deductions directly connected
organization, organized and operated with the earning of gross income
● Search publications online by topic or primarily for the purpose of accepting (excluding exempt function income).
keyword. contributions or making expenditures, or Taxable income is figured with the
● Send us comments or request help by both, to influence the selection, following adjustments:
email, and nomination, election, or appointment of 1. A specific deduction of $100 is
● Sign up to receive local and national any individual to any public office or allowed (but not for newsletter funds).
tax news by email. office in a political organization, or the
election of Presidential or Vice 2. The net operating loss deduction is
CD-ROM. Order Pub. 1796, IRS Tax Presidential electors. Political not allowed, and
Products on CD, and get: organizations include a: 3. The dividends-received deduction
● A CD that is released twice so you 1. Principal campaign committee, if it and other special deductions for
have the latest products. The first is the political committee designated by corporations are not allowed. See section
release ships in late December and the a candidate for U.S. Congress as his or 527(c)(2)(C).
final release ships in late February. her principal campaign committee for Effect of failure to file Form 8871.
● Current year forms, instructions, and purposes of section 302(e) of the Unless excepted (see below), every
publications. Federal Election Campaign Act of 1971 political organization in order to be
● Prior year forms, instructions, and and section 527(h). considered a tax-exempt organization,
publications. If a candidate for U.S. Congress elects must file Form 8871, Political
Organization Notice of Section 527
● Tax Map: an electronic research tool to make a designation under section
527(h), he or she must designate the Status. An organization that is required
and finding aid.
principal campaign committee by to file Form 8871, but fails to file it when
● Tax law and frequently asked due, must include in taxable income for
questions (FAQs). attaching a copy of the Statement of
Candidacy to Form 1120-POL. This can the period before Form 8871 is filed, its
FORM 1120-POL, PAGE 3 of 6
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Form 1120-POL (2005) Page 3

exempt function income (including 2. The deductions directly connected paid preparer’s authorization, see Pub.
contributions received, membership with the production of this income. 947, Practice Before the IRS and Power
dues, and political fundraising receipts), Taxable income is figured with the of Attorney.
minus any deductions directly connected adjustments shown in 1, 2, and 3 on However, the authorization will
with the production of that income. The page 2. automatically end no later than the due
organization may not deduct its exempt date (excluding extensions) for filing the
function expenditures because section 2006 tax return. If you want to revoke
162(e) denies a deduction for political Who Must Sign the authorization before it ends, see
campaign expenditures. The return must be signed and dated by: Pub. 947.
● The president, vice president,
Exempt Function and Exempt treasurer, assistant treasurer, chief When and Where To File
Function Income accounting officer, or In general, an organization must file
The exempt function of a political ● Any other officer (such as tax officer) Form 1120-POL by the 15th day of the
organization includes all activities that are authorized to sign. 3rd month after the end of the tax year.
related to and support the process of Receivers, trustees, and assignees If the due date falls on a Saturday,
influencing or attempting to influence the must also sign and date any return filed Sunday, or legal holiday, the
selection, nomination, election, or on behalf of an organization. organization may file on the next
appointment of any individual to any
If an employee of the organization business day.
federal, state, or local public office, or
office of a political organization, or the completes Form 1120-POL, the paid File Form 1120-POL with the Internal
election of Presidential or Vice Presidential preparer’s space should remain blank. In Revenue Service Center, Ogden, UT
electors, whether or not the individuals or addition, anyone who prepares Form 84201.
electors are selected, nominated, elected, 1120-POL but does not charge the Private delivery services. In addition to
or appointed. The term “exempt function” organization should not complete that the United States mail, the organization
also means the making of expenditures section. Generally, anyone who is paid can use certain private delivery services
relating to the individual’s office, once to prepare the return must sign it and fill designated by the IRS to meet the
selected, nominated, elected, or in the Paid Preparer’s Use Only area. “timely mailing as timely filing/payment”
appointed, but only if the expenditures The paid preparer must complete the rule for tax returns and payments. These
would be deductible by an individual required preparer information and: private delivery services include only the
under section 162(a). ● Sign the return in the space provided following:
Exempt function income is the total of for the preparer’s signature. ● DHL Express (DHL): DHL Same Day
all amounts received from the following ● Give a copy of the return to the Service, DHL Next Day 10:30 am, DHL
sources (to the extent that they are taxpayer. Next Day 12:00 pm, DHL Next Day
separately segregated only for use for an 3:00 pm, and DHL 2nd Day Service.
Note. A paid preparer may sign original
exempt function): ● Federal Express (FedEx): FedEx
or amended returns by rubber stamp,
● Contributions of money and property. mechanical device, or computer Priority Overnight, FedEx Standard
● Membership dues, fees, or software program. Overnight, FedEx 2Day, FedEx
assessments paid by a member of a International Priority, and FedEx
political party. International First, and
Paid Preparer Authorization ● United Parcel Service (UPS): UPS
● Proceeds from a political fundraising
or entertainment event, or from the sale If the organization wants to allow the IRS Next Day Air, UPS Next Day Air Saver,
of political campaign materials, if those to discuss its 2005 tax return with the UPS 2nd Day Air, UPS 2nd Day Air
amounts are not received in the active paid preparer who signed it, check the A.M., UPS Worldwide Express Plus, and
conduct of a trade or business, and “Yes” box in the signature area of the UPS Worldwide Express.
return. This authorization applies only to The private delivery service can tell
● Proceeds from the conduct of a bingo the individual whose signature appears in
game, as described in section 513(f)(2). you how to get written proof of the
the Paid Preparer’s Use Only section of mailing date.
Specified Taxable Income the return. It does not apply to the firm,
if any, shown in that section. If you use a private delivery service,
Newsletter fund. Taxable income of a use the following address for filing the
If the “Yes” box is checked, the return.
newsletter fund is figured in the same organization is authorizing the IRS to call
manner as taxable income of a political the paid preparer to answer any Internal Revenue Service
organization except that the specific questions that may arise during the 1973 N. Rulon White Blvd.
deduction of $100 is not allowed. processing of its return. The organization Ogden, UT 84404
Exempt organization that is not a is also authorizing the paid preparer to: Extension. File Form 7004, Application
political organization. Taxable income ● Give the IRS any information that is for Automatic Extension of Time To File
for an exempt organization described in missing from its return, Corporation Income Tax Return, to
section 501(c) that is not a political request a 6-month extension of time to
organization is the smaller of: ● Call the IRS for information about the file.
processing of its return or the status of
1. The net investment income of the any refund or payment(s), and
organization for the tax year, or Other Reports and Returns
● Respond to certain IRS notices that
2. The amount spent for an exempt the organization may have shared with That May Be Required
function during the tax year either the preparer about math errors, offsets, An organization that files Form
directly or indirectly through another and return preparation. The notices will 1120-POL may also be required to file
organization. not be sent to the preparer. the following forms:
Net investment income, for this The organization is not authorizing the 1. Form 8871, Political Organization
purpose, is the excess of: paid preparer to receive any refund Notice of Section 527 Status.
1. The gross amount of interest, check, bind the organization to anything Generally, in order to be tax-exempt, a
dividends, rents, and royalties, plus the (including any additional tax liability), or political organization must file this form
excess, if any, of gains from the sale or otherwise represent it before the IRS. If within 24 hours of the date it is
exchange of assets, over the losses from the organization wants to expand the established and within 30 days of any
the sale or exchange of assets, over
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Form 1120-POL (2005) Page 4

material change in the organization. performance, (b) payment is due, or (c) Electronic Deposit Requirement
However, do not file this form if the payment is received, and The organization must make electronic
organization is: ● The amount can be determined with deposits of all depository taxes (such as
● An organization that reasonably reasonable accuracy. employment tax, excise tax, and
expects its annual gross receipts to See Regulations section 1.451-1(a) for corporate income tax) using the
always be less than $25,000, details. Electronic Federal Tax Payment System
● A political committee required to report Generally, an accrual basis taxpayer (EFTPS) in 2006 if:
under the Federal Election Campaign Act can deduct accrued expenses in the tax ● The total deposits of such taxes in
of 1971 (2 U.S.C. 431 et seq.), year when: 2004 were more than $200,000, or
● A political committee of a state or ● All events that determine the liability ● The organization was required to use
local candidate, have occurred, EFTPS in 2005.
● A state or local committee of a ● The amount of the liability can be If the organization is required to use
political party, or figured with reasonable accuracy, and EFTPS and fails to do so, it may be
● A tax-exempt organization described ● Economic performance takes place subject to a 10% penalty. If the
in section 501(c) that is treated as with respect to the expense. organization is not required to use
having political organization taxable EFTPS, it may participate voluntarily. To
income under section 527(f)(1). There are exceptions to the economic enroll in or get more information about
performance rule for certain items, EFTPS, call 1-800-555-4477.
2. Form 8872, Political Organization including recurring expenses. See
Report of Contributions and section 461(h) and the related Depositing on time. For deposits made
Expenditures (periodic reports are regulations for the rules for determining by EFTPS to be on time, the
required during the calendar year). when economic performance takes organization must initiate the transaction
Generally, a political organization that place. at least 1 business day before the date
files Form 8871 and accepts a the deposit is due.
Generally, the organization may only
contribution or makes an expenditure for change the method of accounting used
an exempt function during the calendar Deposits With Form 8109
to report taxable income (for income as
year must file this form. However, this a whole or for any material item) by If the organization does not use EFTPS,
form is not required to be filed by an getting consent on Form 3115, deposit organization income tax
organization excepted from filing Form Application for Change in Accounting payments with Form 8109, Federal Tax
8871 (see above), or a qualified state or Method. For more information, get Pub. Deposit Coupon. If you do not have a
local political organization (QSLPO) (see 538, Accounting Periods and Methods. preprinted Form 8109, use Form 8109-B
the instructions for Form 8871 and Rev. to make deposits. You can get this form
Rul. 2003-49, 2003-20 I.R.B. 903, for the Accounting Periods only by calling 1-800-829-4933. Be sure
definition of a QSLPO). to have your employer identification
The organization must figure its taxable number (EIN) ready when you call.
3. Form 990, Return of Organization income on the basis of a tax year. The
Exempt From Income Tax, or Form Do not send deposits directly to an
tax year is the annual accounting period IRS office; otherwise, the organization
990-EZ, Short Form Return of the organization uses to keep its records
Organization Exempt From Income Tax. may have to pay a penalty. Mail or
and report its income and expenses if deliver the completed Form 8109 with
An exempt political organization must that period is a calendar year or a fiscal
also file one of these forms if its annual the payment to an authorized depositary,
year. However, an organization that does that is, a commercial bank or other
gross receipts are $25,000 or more not keep books or does not have an
($100,000 or more for a QSLPO). financial institution authorized to accept
annual accounting period must use the Federal tax deposits.
The following political organizations calendar year as its tax year. A new
are not required to file Form 990: organization must adopt its tax year by Make checks or money orders payable
the due date (not including extensions) of to the depositary. To help ensure proper
● Any political organization excepted crediting, write the organization’s EIN, the
from the requirement to file Form 8871, its first income tax return. After the
organization has adopted a tax year, it tax period to which the deposit applies,
and and “Form 1120-POL” on the check or
must get the consent of the IRS to
● Any caucus or association of state or change its tax year by filing Form 1128, money order. Be sure to darken the “1120”
local officials. Application To Adopt, Change, or Retain box on the coupon. Records of these
See the Instructions for Form 990 and a Tax Year. See Regulations section deposits will be sent to the IRS.
Form 990-EZ. 1.442-1 and Pub. 538. For more information on deposits, see
the instructions in the coupon booklet
Accounting Methods Rounding Off to Whole (Form 8109) and Pub. 583, Starting a
Figure taxable income using the method Dollars Business and Keeping Records.
of accounting regularly used in keeping Caution. If the organization owes tax
The organization may round off cents to when it files Form 1120-POL, do not
the organization’s books and records. whole dollars on the return and
Permissible methods include: include the payment with the tax return.
accompanying schedules. To round, Instead, mail or deliver the payment with
● Cash, drop amounts under 50 cents and Form 8109 to an authorized depositary
● Accrual, or increase amounts from 50 cents to 99 or use EFTPS, if applicable.
● Any other method authorized by the cents to the next dollar.
Internal Revenue Code. Interest and Penalties
In all cases, the method used must
Depository Method of Tax
clearly show taxable income. Payment Interest
Under the accrual method, an amount The organization must pay the tax due in Interest is charged on taxes paid late
is includible in income when: full no later than the 15th day of the 3rd even if an extension of time to file is
month after the end of the tax year. The granted. Interest is also charged on
● All the events have occurred that fix
two methods of depositing organization penalties imposed for failure to file,
the right to receive the income, which is
income taxes are discussed below. negligence, fraud, gross valuation
the earliest of the date: (a) payment is
overstatements, and substantial
earned through the required
understatement of tax from the due date
FORM 1120-POL, PAGE 5 of 6
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Form 1120-POL (2005) Page 5

(including extensions) to the date of ● The 2006 Form 1120-POL is not Income and deductions. Campaign
payment. The interest charge is figured available at the time the organization is contributions and other exempt function
at a rate determined under section 6621. required to file its return. The income are not includible in income;
organization must show its 2006 tax year likewise, campaign expenditures and
Penalties on the 2005 Form 1120-POL and take other exempt function expenditures are
Penalties may be imposed if the into account any tax law changes that are not deductible. Generally, to be
organization is required to file Form effective for tax years beginning after deductible in computing political
1120-POL and it fails to file the form by December 31, 2005. organization taxable income, expenses
the due date. Address. Include the suite, room, or must be directly connected with the
Penalties for late filing of return. The other unit number after the street production of political organization
following penalties may apply if the address. If the Post Office does not taxable income. In those cases where
organization does not file its tax return deliver mail to the street address and expenses are attributable to the
by the due date, including extensions. the organization has a P.O. box, show production of both exempt function
the box number instead of the street income and political organization taxable
● The organization may be charged a income, the expenses should be
penalty of 5% of the unpaid tax for each address.
allocated on a reasonable and consistent
month or part of a month the return is Final return, name change, address
basis. Only the portion allocable to the
late, up to a maximum of 25% of the change, amended return. If the
production of political organization
unpaid tax. The minimum penalty for a organization ceases to exist, check the
taxable income may be deducted. No
return that is more than 60 days late is “Final return” box.
deduction is allowed for general
the smaller of the tax due or $100. The If the organization has changed its administrative or indirect expenses.
penalty will not be imposed if the name since it last filed a return, check
organization can show that the failure to Line 7—Other income and nonexempt
the “Name change” box. function expenditures. Enter the
file on time was due to reasonable If the organization has changed its
cause. Organizations that file late must income from other sources, such as:
address since it last filed a return, check
attach a statement explaining the ● Exempt function income that was not
the “Address change” box.
reasonable cause. properly segregated for exempt
Note. If a change in address occurs after functions.
Penalty for late payment of tax. An the return is filed, the organization
organization that does not pay the tax ● Income received in the ordinary course
should use Form 8822, Change of
when due generally may have to pay a of a trade or business.
Address, to notify the IRS of the new
penalty of 1⁄2 of 1% of the unpaid tax for address. ● Ordinary income from the trade or
each month or part of a month the tax is business activities of a partnership (from
not paid, up to a maximum of 25% of Amended return. If you are filing an Schedule K-1 (Form 1065), box 1).
the unpaid tax. The penalty will not be amended Form 1120-POL:
● Exempt function income (minus any
imposed if the organization can show ● Check the “Amended return” box,
deductions directly connected with the
that the failure to pay on time was due ● Complete the entire return, production of that income) taxable under
to reasonable cause. ● Correct the appropriate lines with the section 527(i)(4) for failure to timely file
Other penalties. Other penalties can be new information, and Form 8871. Include amounts whether or
imposed for negligence, substantial not segregated for use for an exempt
understatement of tax, and fraud. See ● Refigure the tax liability.
sections 6662 and 6663. Attach a sheet that explains the
reason for the amendments and Also include on this line:
Assembling the Return identifies the lines and amounts being ● Expenditures that were made from
changed on the amended return. exempt function income that were not
Attach Form 4136, Credit for Federal for an exempt function and resulted in
Generally, the amended return must be
Tax Paid on Fuels, after page 1 of Form direct or indirect financial benefit to the
filed within 3 years after the date the
1120-POL. Attach schedules in political organization (see Regulations
original return was due or 3 years after
alphabetical order and other forms in section 1.527-5 for examples), and
the date the organization filed it,
numerical order after Form 4136.
whichever is later. ● Illegal expenditures.
Complete every applicable entry space
Employer identification number (EIN). Attach a schedule listing all income
on Form 1120-POL. Do not write “See
Enter the nine-digit EIN assigned to the and expenditures included on line 7.
attached” instead of completing the
organization. If the organization does not Line 17—Taxable income before
entry spaces. If you need more space on
have an EIN, it must apply for one. An specific deduction of $100. Political
the forms or schedules, attach separate
EIN can be applied for: organizations, newsletter funds, and
sheets using the same size and format
as on the printed forms. Show the totals ● Online by clicking the Employer ID separate segregated funds: Subtract line
on the printed forms. Attach these Numbers (EINs) link at 16 from line 8 and enter the result on
separate sheets after all the schedules The EIN is line 17(c).
and forms. Be sure to put the issued immediately once the application Exempt organizations (section
organization’s name and EIN on each information is validated. 501(c)) that are not political
sheet. organizations. Complete lines 17a and
● By telephone at 1-800-829-4933 from 17b if the organization made exempt
7:00 a.m. to 10:00 p.m. in the function expenditures that were not from
Specific Instructions employer’s local time zone. a separate segregated fund. Enter on
Period covered. File the 2005 return for The online application process is not line 17c the smaller of line 17a or 17b.
calendar year 2005 and fiscal years that yet available for corporations with See Exempt organization that is not a
begin in 2005 and end in 2006. For a addresses in foreign countries or Puerto political organization on page 3 for an
fiscal year, fill in the tax year space at Rico. explanation of the amounts to enter on
the top of the form. these lines.
If the organization has not received its
Note. The 2005 Form 1120-POL may EIN by the time the return is due, write Line 19—Taxable income. Do not file
also be used if: “Applied for” in the space provided for Form 1120-POL if the taxable income on
● The organization has a tax year of less the EIN. See Pub. 583 for details. line 19 is zero or less.
than 12 months that begins and ends in
2006, and
FORM 1120-POL, PAGE 6 of 6
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Line 20—Income tax. The rate of tax ● Qualified electric vehicle credit. See Question 2
imposed depends on whether the Form 8834, Qualified Electric Vehicle
political organization is a principal Credit, and section 30. If you checked “Yes,” to Question 2, the
campaign committee as defined in organization may be required to file
● General business credit (excluding Form 3520, Annual Return To Report
section 527(h). The tax rate is lower for a the Indian employment credit, the work
principal campaign committee. Transactions With Foreign Trusts and
opportunity credit, the welfare-to-work Receipt of Certain Foreign Gifts. For
Political organization not a principal credit, and the empowerment zone and details, see Form 3520.
campaign committee. An organization renewal community employment credit).
that is not a principal campaign See Form 3800, General Business Note. An owner of a foreign trust must
committee computes its tax as follows: Credit. ensure that the trust files an annual
Multiply line 19 by 35% and enter the information return on Form 3520-A,
Enter the total amount of qualified Annual Information Return of Foreign
result on line 20.
credits on line 21 and attach the Trust With a U.S. Owner. For details, see
Principal campaign committee applicable credit forms. the instructions for Form 3520-A.
(section 527(h)). A political organization
that is a principal campaign committee Line 22—Total tax. If the political
organization must recapture any of the Question 3
of a candidate for U.S. Congress
computes its tax in the same manner as qualified electric vehicle credit, include In the space provided, show any
provided in section 11(b) for the amount of the recapture in the total tax-exempt interest income received or
corporations. Compute the tax as for line 22. On the dotted line next to the accrued. Include any exempt-interest
follows: entry space, write “QEV recapture” and dividends received as a shareholder in a
the amount. See Regulations section mutual fund or other regulated
1. Enter taxable income (line 19, 1.30-1 for details on how to figure the investment company.
Form 1120-POL) recapture.
2. Enter line 1 or $50,000,
whichever is less Privacy Act and Paperwork Reduction
Additional Information Act Notice. We ask for the information
3. Subtract line 2 from line 1
Question 1 on this form to carry out the Internal
4. Enter line 3 or $25,000, Revenue laws of the United States. You
whichever is less Foreign financial accounts. Check the are required to give us the information.
5. Subtract line 4 from line 3 “Yes” box if either 1 or 2 below applies We need it to ensure that you are
to the organization. Otherwise, check the complying with these laws and to allow
6. Enter line 5 or $9,925,000,
whichever is less
“No” box: us to figure and collect the right amount
1. At any time during the 2005 of tax. Section 6109 requires return
7. Subtract line 6 from line 5
calendar year the organization had an preparers to provide their identifying
8. Multiply line 2 by 15% interest in or signature or other authority numbers on the return.
9. Multiply line 4 by 25% over a bank, securities, or other financial You are not required to provide the
account in a foreign country; and information requested on a form that is
10. Multiply line 6 by 34%
● The combined value of the accounts subject to the Paperwork Reduction Act
11. Multiply line 7 by 35% unless the form displays a valid OMB
was more than $10,000 at any time
12. If line 1 is greater than during the calendar year; and control number. Books or records relating
$100,000, enter the smaller of: to a form or its instructions must be
5% of taxable income in ● The account was not with a U.S. retained as long as their contents may
excess of $100,000, or military banking facility operated by a become material in the administration of
$11,750 U.S. financial institution. any Internal Revenue law. Generally, tax
13. If line 1 is greater than $15 2. The organization owns more than returns and return information are
million, enter the smaller of: 50% of the stock in any corporation that confidential, as required by section 6103.
3% of taxable income in
excess of $15 million or
would answer “Yes” to item 1 above. The time needed to complete and file
$100,000 See Form TD F 90-22.1, Report of this form will vary depending on
14. Add lines 8 through 13. Enter Foreign Bank and Financial Accounts, to individual circumstances. The estimated
here and on line 20, Form find out if the organization is considered average time is:
1120-POL to have an interest in or signature or Recordkeeping 17 hr., 13 min.
Note. Estimated tax and alternative other authority over a financial account
in a foreign country. Learning about the
minimum tax do not apply to political law or the form 5 hr., 15 min.
organizations. If “Yes” is checked for this question,
file Form TD F 90-22.1 by June 30, Preparing the form 12 hr., 17 min.
Line 21—Tax credits. The organization
may qualify for the following credits: 2006, with the Department of the Copying, assembling,
Treasury at the address shown on the and sending the
● Foreign tax credit. See Form 1118, form. Do not attach it to Form form to the IRS 1 hr., 52 min.
Foreign Tax Credit—Corporations. 1120-POL.
If you have comments concerning the
● Credit for fuel produced from a You can get Form TD F 90-22.1 by accuracy of these time estimates or
nonconventional source. Use Form calling 1-800-TAX-FORM suggestions for making this form simpler,
8907, Nonconventional Source Fuel (1-800-829-3676) or you can download it we would be happy to hear from you.
Credit, to claim a credit for the sale of from the IRS website at You can write to the Internal Revenue
qualified fuels produced from a Service, Tax Products Coordinating
nonconventional source. Section 29 Also, if “Yes” is checked for this
question, enter the name of the foreign Committee, SE:W:CAR:MP:T:T:SP, 1111
contains a definition of qualified fuels, Constitution Ave. NW, IR-6406,
provisions for figuring the credit, and country or countries. Attach a separate
sheet if more space is needed. Washington, DC 20224. Do not send the
other special rules. Attach a separate tax form to this address. Instead, see
schedule to the return showing the When and Where To File on page 3.
computation of the credit.