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U.S. Income Tax Return OMB No.

Form 1120-POL for Certain Political Organizations
Department of the Treasury
Internal Revenue Service 2002
For calendar year 2002 or other tax year beginning , 2002, 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 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 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 2002 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 Paperwork Reduction Act Notice, see instructions on page 6. Cat. No. 11523K Form 1120-POL (2002)
Form 1120-POL (2002) Page 2

A Change To Note 1-877-CDFORMS (1-877-233-6767) toll 3. The candidate’s party affiliation and
free to buy the CD-ROM for $22 (plus a office sought.
P.L. 107-276, enacted November 2, $5 handling fee). 4. The district and state in which the
2002, repealed the requirement that all By phone and in person. You can order office is sought.
political organizations with gross receipts forms and publications 24 hours a day,
of $25,000 or more must file Form 5. The name and address of the
7 days a week, by calling principal campaign committee.
1120-POL. Effective for tax years 1-800-TAX-FORM (1-800-829-3676).
beginning after June 30, 2000, only You can also get most forms and Note: If the candidate for U.S. Congress
those organizations that have taxable publications at your local IRS office. has a designation in effect from an
income under section 527 are required earlier year, attach a copy of the earlier
to file Form 1120-POL. Any organization year’s designation to this year’s Form
that would have been required to file General Instructions 1120-POL and check the appropriate
because of this $25,000 rule, but that Section references are to the Internal box on the form. See Regulations
has not yet filed, is not required to file Revenue Code unless otherwise noted. section 1.527-9. If a candidate for U.S.
Form 1120-POL unless required under Congress has only one political
another provision of section 6012(a)(6). Purpose of Form campaign committee, no designation is
The Act also repealed the disclosure and required. However, be sure to check the
public inspection rules as they applied Political organizations and certain appropriate box on Form 1120-POL.
to Form 1120-POL. It has no effect on exempt organizations file Form
1120-POL to report their political ● Newsletter fund, if it is a fund
disclosure of returns filed and disclosed established and maintained by an
prior to the date of enactment. organization taxable income and income
tax liability under section 527. individual who holds, has been elected
to, or is a candidate (as defined in
Photographs of Missing Who Must File section 527(g)(3)) for nomination or
Children election to any Federal, state, or local
A political organization, whether or not it elective public office. The fund must be
The Internal Revenue Service is a proud is tax-exempt, must file Form 1120-POL maintained exclusively for the
partner with the National Center for if it has any political organization taxable preparation and circulation of the
Missing and Exploited Children. income. individual’s newsletter.
Photographs of missing children An exempt organization that is not a ● Separate segregated fund, if it is
selected by the Center may appear in political organization must file Form maintained by a section 501(c)
instructions on pages that would 1120-POL if it is treated as having organization (exempt from tax under
otherwise be blank. You can help bring political organization taxable income section 501(a)). For more information,
these children home by looking at the under section 527(f)(1). see section 527(f)(3) and Regulations
photographs and calling section 1.527-6(f).
1-800-THE-LOST (1-800-843-5678) if Political Organizations
you recognize a child. A political organization is a party, Taxable Income
committee, association, fund (including a
How To Get Forms and separate segregated fund described in
Political organization taxable income
(line 19) is the excess of (a) gross
Publications section 527(f)(3) set up by a section income for the tax year (excluding
Personal computer. You can access the 501(c) organization), or other exempt function income (defined below))
IRS Web Site 24 hours a day, 7 days a organization, organized and operated over (b) deductions directly connected
week at to: primarily for the purpose of accepting with the earning of gross income
contributions or making expenditures, or (excluding exempt function income).
● Download forms, instructions, and both, to influence the selection,
publications. Taxable income is figured with the
nomination, election, or appointment of following adjustments:
● Order IRS products on-line. any individual to any public office or
● See answers to frequently asked tax office in a political organization, or the 1. A specific deduction of $100 is
questions. election of Presidential or Vice allowed (but not for newsletter funds).
Presidential electors. Political 2. The net operating loss deduction is
● Search publications on-line by topic or
organizations include a: not allowed.
● Principal campaign committee, if it 3. The dividends-received deduction
● Send us comments or request help by
is the political committee designated by and other special deductions for
a candidate for U.S. Congress as his or corporations are not allowed. See
● Sign up to receive local and national her principal campaign committee for section 527(c)(2)(C).
tax news by e-mail. purposes of section 302(e) of the
You can also reach us using file Federal Election Campaign Act of 1971 Effect of failure to file Form 8871. An
transfer protocol at and section 527(h). organization that is required to file Form
CD-ROM. Order Pub. 1796, Federal Tax If a candidate for U.S. Congress elects 8871, Political Organization Notice of
Products on CD-ROM, and get: to make a designation under section Section 527 Status, but fails to file it
● Current year forms, instructions, and 527(h), he or she must designate the when due, must include in taxable
publications. principal campaign committee by income for the period before Form 8871
attaching a copy of the Statement of is filed, its exempt function income
● Prior year forms, instructions, and Candidacy to Form 1120-POL. This can
publications. be either the Federal Election (including contributions received,
● Frequently requested tax forms that Commission’s Form 2 or an equivalent membership dues, and political
may be filled in electronically, printed out statement filed with the Federal Election fundraising receipts), minus any
for submission, and saved for Commission. The designation may also deductions directly connected with the
recordkeeping. be made by attaching a signed production of that income. The
● The Internal Revenue Bulletin. statement with all of the following organization may not deduct its exempt
Buy the CD-ROM on the Internet at information:
function expenditures because section from the National 1. The candidate’s name and address. 162(e) denies a deduction for political
Technical Information Service (NTIS) for 2. The candidate’s identifying number. campaign expenditures.
$22 (no handling fee) or call
Form 1120-POL (2002) Page 3

Exempt Function and Exempt Who Must Sign When and Where To File
Function Income The return must be signed and dated In general, an organization must file
The exempt function of a political by: Form 1120-POL by the 15th day of the
organization is the function of influencing ● The president, vice president, 3rd month after the end of the tax year.
or attempting to influence the selection, treasurer, assistant treasurer, chief
nomination, election, or appointment of If the due date falls on a Saturday,
accounting officer, or Sunday, or legal holiday, the organization
any individual to any Federal, state, or
local public office, or office of a political ● Any other officer (such as tax officer) may file on the next business day.
organization, or the election of authorized to sign. File Form 1120-POL with the Internal
Presidential or Vice Presidential electors, Receivers, trustees, and assignees Revenue Service Center, Ogden, UT
whether or not the individuals or electors must also sign and date any return filed 84201.
are selected, nominated, elected, or on behalf of an organization. Private delivery services. In addition to
appointed. The term “exempt function” If an employee of the organization the United States mail, the organization
also means the making of expenditures completes Form 1120-POL, the paid can use certain private delivery services
relating to the individual’s office, once preparer’s space should remain blank. In designated by the IRS to meet the
selected, nominated, elected, or addition, anyone who prepares Form “timely mailing as timely filing/payment”
appointed, but only if the expenditures 1120-POL but does not charge the rule for tax returns and payments. The
would be deductible by an individual organization should not complete that most recent list of designated private
under section 162(a). section. Generally, anyone who is paid delivery services was published by the
Exempt function income is the total of to prepare the return must sign it and fill IRS in September 2002. The list includes
all amounts received from the following in the Paid Preparer’s Use Only area. only the following:
sources (to the extent that they are The paid preparer must complete the ● Airborne Express (Airborne): Overnight
separately segregated only for use for an required preparer information and: Air Express Service, Next Afternoon
exempt function): Service, Second Day Service.
● Sign the return, by hand, in the space
1. Contributions of money and provided for the preparer’s signature ● DHL Worldwide Express (DHL): DHL
property. (signature stamps and labels are not “Same Day” Service, DHL USA
2. Membership dues, fees, or acceptable). Overnight.
assessments paid by a member of a ● Give a copy of the return to the ● Federal Express (FedEx): FedEx
political party. taxpayer. Priority Overnight, FedEx Standard
3. Proceeds from a political fundraising Overnight, FedEx 2 Day, FedEx
or entertainment event, or from the sale Paid Preparer Authorization International Priority, and FedEx
of political campaign materials, if those International First.
If the organization wants to allow the
amounts are not received in the active
IRS to discuss its 2002 tax return with ● United Parcel Service (UPS): UPS
conduct of a trade or business. Next Day Air, UPS Next Day Air Saver,
the paid preparer who signed it, check
4. Proceeds from the conduct of a the “Yes” box in the signature area of UPS 2nd Day Air, UPS 2nd Day Air A.M.,
bingo game, as described in section the return. This authorization applies UPS Worldwide Express Plus, UPS
513(f)(2). only to the individual whose signature Worldwide Express.
Specified Taxable Income appears in the “Paid Preparer’s Use The private delivery service can tell
Only” section of the return. It does not you how to get written proof of the
Newsletter fund. Taxable income of a apply to the firm, if any, shown in that mailing date.
newsletter fund is figured in the same section. Extension. File Form 7004, Application
manner as taxable income of a political for Automatic Extension of Time To File
organization except that the specific If the “Yes” box is checked, the
organization is authorizing the IRS to call Corporation Income Tax Return, to
deduction of $100 is not allowed. request a 6-month extension of time to
the paid preparer to answer any
Exempt organization that is not a questions that may arise during the file.
political organization. Taxable income processing of its return. The organization
for an exempt organization described in is also authorizing the paid preparer to: Other Reports and Returns
section 501(c) that is not a political
organization is the smaller of: ● Give the IRS any information that is That May Be Required
missing from its return,
1. The net investment income of the An organization that files Form
organization for the tax year, or ● Call the IRS for information about the 1120-POL may also be required to file
processing of its return or the status of the following forms:
2. The amount spent for an exempt any refund or payment(s), and
function during the tax year either ● Form 8871, Political Organization
directly or indirectly through another ● Respond to certain IRS notices that Notice of Section 527 Status.
organization. the organization may have shared with
the preparer about math errors, offsets, Generally, in order to be tax-exempt, a
Net investment income, for this and return preparation. The notices will political organization must file this form
purpose, is the excess of: not be sent to the preparer. within 24 hours of the date it is
1. The gross amount of interest, established and within 30 days of any
The organization is not authorizing the material change in the organization.
dividends, rents, and royalties, plus the paid preparer to receive any refund
excess, if any, of gains from the sale or However, do not file this form if the
check, bind the organization to anything organization is:
exchange of assets, over the losses (including any additional tax liability), or
from the sale or exchange of assets, otherwise represent it before the IRS. If 1. An organization that reasonably
over the organization wants to expand the expects its annual gross receipts to
2. The deductions directly connected paid preparer’s authorization, see Pub. always be less than $25,000,
with the production of this income. 947, Practice Before the IRS and Power 2. A political committee required to
Taxable income is figured with the of Attorney. report under the Federal Election
adjustments shown in 1, 2, and 3 on The authorization cannot be revoked. Campaign Act of 1971 (2 U.S.C. 431 et
page 2. However, the authorization will seq.),
automatically end no later than the due 3. A political committee of a state or
date (excluding extensions) for filing the local candidate,
2003 tax return.
Form 1120-POL (2002) Page 4
4. A state or local committee of a There are exceptions to the economic EFTPS, it may participate voluntarily. To
political party, or performance rule for certain items, enroll in or get more information about
5. A tax-exempt organization including recurring expenses. See EFTPS, call 1-800-555-4477 or
described in section 501(c) that is section 461(h) and the related 1-800-945-8400.
treated as having political organization regulations for the rules for determining Depositing on time. For deposits made
taxable income under section 527(f)(1). when economic performance takes by EFTPS to be on time, the
place. organization must initiate the transaction
● Form 8872, Political Organization
Report of Contributions and Generally, the organization may only at least 1 business day before the date
Expenditures (periodic reports are change the method of accounting used the deposit is due.
required during the calendar year). to report taxable income (for income as
a whole or for any material item) by Deposits With Form 8109
Generally, a political organization that
getting consent on Form 3115, If the organization does not use EFTPS,
files Form 8871 and accepts a
Application for Change in Accounting deposit organization income tax
contribution or makes an expenditure for
Method. For more information, get Pub. payments with Form 8109, Federal Tax
an exempt function during the calendar
538, Accounting Periods and Methods. Deposit Coupon. If you do not have a
year must file this form. However, this
form is not required to be filed by an preprinted Form 8109, use Form 8109-B
organization not required to file Form
Accounting Periods to make deposits. You can get this form
8871 (see above), a state or local The organization must figure its taxable only by calling 1-800-829-4933. Be sure
committee of a political party, or a income on the basis of a tax year. The to have your employer identification
political committee of a state or local tax year is the annual accounting period number (EIN) ready when you call.
candidate, or a qualified state or local the organization uses to keep its records Do not send deposits directly to an
political organization (QSLPO) (see the and report its income and expenses if IRS office; otherwise, the organization
Instructions for Form 8872 for the that period is a calendar year or a fiscal may have to pay a penalty. Mail or
definition of a QSLPO). year. However, an organization that does deliver the completed Form 8109 with
not keep books or does not have an the payment to an authorized depositary,
● Form 990, Return of Organization annual accounting period must use the
Exempt From Income Tax, or Form i.e., a commercial bank or other financial
calendar year as its tax year. A new institution authorized to accept Federal
990-EZ, Short Form Return of organization must adopt its tax year by
Organization Exempt From Income Tax. tax deposits.
the due date (not including extensions) Make checks or money orders payable
An exempt political organization must of its first income tax return. After the
also file one of these forms if its annual to the depositary. To help ensure proper
organization has adopted a tax year, it crediting, write the organization’s EIN,
gross receipts are $25,000 or more must get the consent of the IRS to
($100,000 or more for a QSLPO). the tax period to which the deposit
change its tax year by filing Form 1128, applies, and “Form 1120-POL” on the
See the Instructions for Form 990 and Application To Adopt, Change, or Retain check or money order. Be sure to darken
Form 990-EZ. a Tax Year. See Regulations section the “1120” box on the coupon. Records
1.442-1 and Pub. 538. of these deposits will be sent to the IRS.
Accounting Methods
Rounding Off to Whole For more information on deposits, see
Figure taxable income using the method the instructions in the coupon booklet
of accounting regularly used in keeping Dollars (Form 8109) and Pub. 583, Starting a
the organization’s books and records. The organization may show amounts on Business and Keeping Records.
Permissible methods include: the return and accompanying schedules Caution: If the organization owes tax
● Cash, as whole dollars. To do so, drop when it files Form 1120-POL, do not
● Accrual, or amounts less than 50 cents and include the payment with the tax return.
increase amounts from 50 cents through Instead, mail or deliver the payment with
● Any other method authorized by the
99 cents to the next higher dollar. Form 8109 to an authorized depositary
Internal Revenue Code.
or use EFTPS, if applicable.
In all cases, the method used must Depository Method of Tax
clearly show taxable income. Interest and Penalties
Under the accrual method, an amount
is includible in income when: The organization must pay the tax due in Interest
● All the events have occurred that fix full no later than the 15th day of the 3rd Interest is charged on taxes paid late
the right to receive the income, which is month after the end of the tax year. The even if an extension of time to file is
the earliest of the date: (a) the required two methods of depositing organization granted. Interest is also charged on
performance takes place, (b) payment is income taxes are discussed below. penalties imposed for failure to file,
due, or (c) payment is received and negligence, fraud, gross valuation
Electronic Deposit Requirement overstatements, and substantial
● The amount can be determined with
reasonable accuracy. The organization must make electronic understatement of tax from the due date
deposits of all depository taxes (such as (including extensions) to the date of
See Regulations section 1.451-1(a) for payment. The interest charge is figured
employment tax, excise tax, and
details. at a rate determined under section 6621.
corporate income tax) using the
Generally, an accrual basis taxpayer Electronic Federal Tax Payment System
can deduct accrued expenses in the tax (EFTPS) in 2003 if: Penalties
year when: Penalties may be imposed if the
● The total deposits of such taxes in
● All events that determine the liability 2001 were more than $200,000 or organization is required to file Form
have occurred, 1120-POL and it:
● The organization was required to use
● The amount of the liability can be EFTPS in 2002. ● Fails to file the form by the due date
figured with reasonable accuracy, and or
If the organization is required to use
● Economic performance takes place EFTPS and fails to do so, it may be ● Files the form but fails to report all the
with respect to the expense. subject to a 10% penalty. If the information required or it reports
organization is not required to use incorrect information.
Form 1120-POL (2002) Page 5
Penalties for late filing of return. The as on the printed forms. Show the totals must be directly connected with the
following penalties may apply if the on the printed forms. Attach these production of political organization
organization does not file its tax return separate sheets after all the schedules taxable income. In those cases where
by the due date, including extensions. and forms. Be sure to put the expenses are attributable to the
● The organization may be charged a organization’s name and EIN on each production of both exempt function
penalty of 5% of the unpaid tax for each sheet. income and political organization taxable
month or part of a month the return is income, the expenses should be
allocated on a reasonable and
late, up to a maximum of 25% of the
unpaid tax. The minimum penalty for a
Specific Instructions consistent basis. Only the portion
return that is more than 60 days late is Period covered. File the 2002 return for allocable to the production of political
the smaller of the tax due or $100. The calendar year 2002 and fiscal years that organization taxable income may be
penalty will not be imposed if the begin in 2002 and end in 2003. For a deducted. No deduction is allowed for
organization can show that the failure to fiscal year, fill in the tax year space at general administrative or indirect
file on time was due to reasonable the top of the form. expenses.
cause. Organizations that file late must Note: The 2002 Form 1120-POL may Line 7—Other income and nonexempt
attach a statement explaining the also be used if: function expenditures. Enter the
reasonable cause. ● The organization has a tax year of less income from other sources, such as:
● For each day the return is late, the than 12 months that begins and ends in ● Exempt function income that was not
organization may be charged a penalty 2003, and properly segregated for exempt
of $20 a day, not to exceed the smaller ● The 2003 Form 1120-POL is not functions.
of $10,000 or 5% of the gross receipts available at the time the organization is ● Income received in the ordinary course
of the organization for the year for any required to file its return. The of a trade or business.
one return. Organizations with annual organization must show its 2003 tax year ● Ordinary income from the trade or
gross receipts exceeding $1 million may on the 2002 Form 1120-POL and take business activities of a partnership (from
be charged a penalty of $100 a day, not into account any tax law changes that Schedule K-1 (Form 1065), line 1).
to exceed $50,000 for any one return. are effective for tax years beginning after
The penalty may also be charged if the ● Exempt function income (minus any
December 31, 2002.
organization files an incomplete return or deductions directly connected with the
furnishes incorrect information. The Address. Include the suite, room, or production of that income) taxable under
penalty will not be imposed if the other unit number after the street section 527(i)(4) for failure to timely file
organization can show that the failure address. If the Post Office does not Form 8871. Include amounts whether or
was due to reasonable cause. deliver mail to the street address and not segregated for use for an exempt
the organization has a P.O. box, show function.
● If the organization does not file a the box number instead of the street
complete return or does not furnish Also include on this line:
correct information, the IRS will send the ● Expenditures that were made from
organization a letter that includes a fixed Final return, name change, address
exempt function income that were not
time to fulfill these requirements. After change, amended return. If the
for an exempt function and resulted in
that period expires, the person failing to organization ceases to exist, check the
direct or indirect financial benefit to the
comply may be charged a penalty of “Final return” box.
political organization (see Regulations
$10 per day, not to exceed $5,000 for If the organization has changed its section 1.527-5 for examples).
any one return. The penalty will not be name since it last filed a return, check
● Illegal expenditures.
imposed if he or she can show that not the “Name change” box.
complying was due to reasonable cause. Attach a schedule listing all income
If the organization has changed its
If more than one person is responsible, and expenditures included on line 7.
address since it last filed a return, check
they are jointly and individually liable for the “Address change” box. Line 17—Taxable income before
the penalty. specific deduction of $100. Political
Note: If a change in address occurs after
Penalty for late payment of tax. An organizations, newsletter funds, and
the return is filed, the organization
organization that does not pay the tax separate segregated funds: Subtract line
should use Form 8822, Change of
when due generally may have to pay a 16 from line 8 and enter the result on
Address, to notify the IRS of the new
penalty of 1⁄2 of 1% of the unpaid tax for line 17(c).
each month or part of a month the tax is Exempt organizations (section
not paid, up to a maximum of 25% of To amend a previously filed Form 501(c)) that are not political
the unpaid tax. The penalty will not be 1120-POL, file a corrected Form organizations: Complete lines 17a and
imposed if the organization can show 1120-POL and check the “Amended 17b if the organization made exempt
that the failure to pay on time was due return” box. function expenditures that were not from
to reasonable cause. Employer identification number (EIN). a separate segregated fund. Enter on
Other penalties. Other penalties can be Enter the organization’s EIN. If the line 17c the smaller of line 17a or 17b.
imposed for negligence, substantial organization does not have an EIN, it See Exempt organization that is not a
understatement of tax, and fraud. See should apply for one on Form SS-4, political organization on page 3 for an
sections 6662 and 6663. Application for Employer Identification explanation of the amounts to enter on
Number. If the organization has not these lines.
Assembling the Return received its EIN by the time the return is Line 19—Taxable income. Do not file
due, write “Applied for” in the space Form 1120-POL if the taxable income on
Attach Form 4136, Credit for Federal provided for the EIN. See Pub. 583 for
Tax Paid on Fuels, after page 1 of Form line 19 is zero or less.
1120-POL. Attach schedules in Line 20—Income tax. The rate of tax
Income and deductions. Campaign imposed depends on whether the
alphabetical order and other forms in
contributions and other exempt function political organization is a principal
numerical order after Form 4136.
income are not includible in income; campaign committee as defined in
Complete every applicable entry space likewise, campaign expenditures and
on Form 1120-POL. Do not write “See section 527(h). The tax rate is lower for
other exempt function expenditures are a principal campaign committee.
attached” instead of completing the not deductible. Generally, to be
entry spaces. If you need more space on deductible in computing political
the forms or schedules, attach separate organization taxable income, expenses
sheets using the same size and format
Form 1120-POL (2002) Page 6

Political organization not a principal the amount of the recapture in the total Paperwork Reduction Act Notice. We
campaign committee. An organization for line 22. On the dotted line next to the ask for the information on this form to
that is not a principal campaign entry space, write “QEV recapture” and carry out the Internal Revenue laws of
committee computes its tax as follows: the amount. See Regulations section the United States. You are required to
Multiply line 19 by 35% and enter the 1.30-1 for details on how to figure the give us the information. We need it to
result on line 20. recapture. ensure that you are complying with
Principal campaign committee these laws and to allow us to figure and
(section 527(h)). A political organization Additional Information collect the right amount of tax.
that is a principal campaign committee You are not required to provide the
of a candidate for U.S. Congress
Question 1 information requested on a form that is
computes its tax in the same manner as Foreign financial accounts. Check the subject to the Paperwork Reduction Act
provided in section 11(b) for “Yes” box if either 1 or 2 below applies unless the form displays a valid OMB
corporations. Compute the tax as to the organization. Otherwise, check control number. Books or records
follows: the “No” box: relating to a form or its instructions must
1. Enter taxable income (line 19, 1. At any time during the 2002 be retained as long as their contents
Form 1120-POL) calendar year the organization had an may become material in the
2. Enter line 1 or $50,000, interest in or signature or other authority administration of any Internal Revenue
whichever is less over a bank, securities, or other financial law. Generally, tax returns and return
3. Subtract line 2 from line 1 account in a foreign country; and information are confidential, as required
4. Enter line 3 or $25,000, ● The combined value of the accounts by section 6103.
whichever is less was more than $10,000 at any time The time needed to complete and file
5. Subtract line 4 from line 3 during the calendar year; and this form will vary depending on
6. Enter line 5 or $9,925,000, ● The account was not with a U.S. individual circumstances. The estimated
whichever is less
military banking facility operated by a average time is:
7. Subtract line 6 from line 5 U.S. financial institution. Recordkeeping 17 hr., 13 min.
8. Multiply line 2 by 15% 2. The organization owns more than Learning about the
9. Multiply line 4 by 25% 50% of the stock in any corporation that law or the form 5 hr., 15 min.
10. Multiply line 6 by 34% would answer “Yes” to item 1 above. Preparing the form 12 hr., 17 min.
11. Multiply line 7 by 35% See Form TD F 90-22.1, Report of Copying, assembling,
12. If line 1 is greater than Foreign Bank and Financial Accounts, to and sending the
$100,000, enter the smaller of: find out if the organization is considered form to the IRS 1 hr., 52 min.
5% of taxable income in to have an interest in or signature or
excess of $100,000, or If you have comments concerning the
other authority over a financial account accuracy of these time estimates or
in a foreign country. suggestions for making this form
13. If line 1 is greater than $15
million, enter the smaller of: If “Yes” is checked for this question, simpler, we would be happy to hear from
3% of taxable income in file Form TD F 90-22.1 by June 30, you. You can write to the Tax Forms
excess of $15 million or 2003, with the Department of the Committee, Western Area Distribution
$100,000 Treasury at the address shown on the Center, Rancho Cordova, CA
14. Add lines 8 through 13. Enter form. Do not attach it to Form
here and on line 20, Form
95743-0001. Do not send the tax form
1120-POL 1120-POL. to this address. Instead, see When and
You can get Form TD F 90-22.1 by Where To File on page 3.
Note: Estimated tax and alter native
minimum tax do not apply to political calling 1-800-TAX-FORM
organizations. (1-800-829-3676) or you can download it
from the IRS Web Site at
Line 21—Tax credits. The organization
may qualify for the following credits: Also, if “Yes” is checked for this
question, enter the name of the foreign
● Foreign tax credit. See Form 1118, country or countries. Attach a separate
Foreign Tax Credit—Corporations. sheet if more space is needed.
● Credit for fuel produced from a
nonconventional source. See section Question 2
29 for a definition of qualified fuels, If you checked “Yes,” to Question 2, the
provisions for figuring the credit, and organization may be required to file
other special rules. Form 3520, Annual Return To Report
● Qualified electric vehicle credit. See Transactions With Foreign Trusts and
Form 8834, Qualified Electric Vehicle Receipt of Certain Foreign Gifts. For
Credit, and section 30. details, see Form 3520.
● General business credit (excluding Note: An owner of a foreign trust must
the Indian employment credit, the work ensure that the trust files an annual
opportunity credit, the New York liberty infor mation return on Form 3520-A,
zone business employee credit, the Annual Information Return of Foreign
welfare-to-work credit, and the Trust With a U.S. Owner. For details, see
empowerment zone and renewal the instructions for Form 3520-A.
community employment credit). See Question 3
Form 3800, General Business Credit.
In the space provided, show any
Enter the total amount of qualified tax-exempt interest income received or
credits on line 21 and attach the accrued. Include any exempt-interest
applicable credit forms. dividends received as a shareholder in a
Line 22—Total tax. If the political mutual fund or other regulated
organization must recapture any of the investment company.
qualified electric vehicle credit, include