IRS Form 1120-POL "U.S. Income Tax Return for Certain Political Organizations"

​What Is IRS Form 1120-POL?

IRS Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, is a document used to provide information about a political organization's taxable income and tax liability according to Section 527.

The 1120-POL Form is a simple one-page form. It can be complemented with the Schedule D (Form 1120), Capital Gains and Losses. Fill out this schedule to report capital gains distributions not provided on the main form.

The document was issued by the Internal Revenue Service (IRS) and last revised in 2020. Download the latest fillable Form 1120-POL through the link below.

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​IRS Form 1120-POL Instructions

Most fields of the IRS Form 1120-POL are self-explanatory. The detailed completion information is provided in the IRS instructions attached to the fillable form.

The general 1120-POL filing requirements are as follows:

  1. File this form if your political organization has any taxable income, whether or not it is considered as tax-exempt;
  2. Submit this form if you are not a political organization, but have political organization taxable income described in section 527(f)(1);
  3. The 1120-POL due date is the 15th day of the 4th month after the end of the tax year;
  4. If you cannot file the form by the due date, apply for the automatic extension via Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns;
  5. Fill out every applicable box. Do not enter "See attached" instead of filling out the box;
  6. Make sure you have provided the organization's name and employer organization number (EIN) on each attachment;
  7. If you applied for the EIN but have not received it by the time the return is due, enter "Applied for" and the application date in the appropriate field;
  8. Assembling the return, attach Form 4136 right after 1120-POL Form. Then, attach all the schedules in alphabetical, and other forms in numerical order;
  9. Mail the form and the attachments to the following address: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201;
  10. If the principal office or business of your organization is located in any of the United States possessions or in a foreign country, use the following address: Internal Revenue Service Center, PO Box 409101, Ogden, UT 84409.

If you do not file the form on time, you may be subject to a penalty of 5% of the unpaid tax for each month, unless you provide a reasonable cause for not meeting the deadline. Provide the explanations after receiving the notice about the penalty. Do not attach them to your return form. If your return is more than 60 days late, the minimum penalty is the tax due or $210, whichever is smaller.


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1120-POL
U.S. Income Tax Return for Certain Political Organizations
OMB No. 1545-0123
Form
2020
Department of the Treasury
Go to www.irs.gov/Form1120POL for the latest information.
Internal Revenue Service
For calendar year 2020 or other tax year beginning
, 2020, and ending
, 20
Check the box if this is a section 501(c) organization .
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Employer identification number
Name of organization
Check if:
Final return
Number, street, and room or suite no. (If a P.O. box, see instructions.)
Name change
Address change
City or town, state or province, country, and ZIP or foreign postal code
Amended return
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Dividends (attach statement) .
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Interest
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Gross rents .
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Capital gain net income (attach Schedule D (Form 1120)) .
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Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
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Other income and nonexempt function expenditures (see instructions) .
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Total income. Add lines 1 through 7
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Salaries and wages .
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Repairs and maintenance .
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Rents .
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Taxes and licenses .
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Interest
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Depreciation (attach Form 4562) .
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Other deductions (attach statement)
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Total deductions. Add lines 9 through 15
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Taxable income before specific deduction of $100. See instructions. Section 501(c) organizations show:
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Amount of net investment income .
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Aggregate amount expended for an exempt function (attach statement)
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Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g))
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Taxable income. Subtract line 18 from line 17c. If line 19 is zero or less, see the instructions .
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Income tax. See instructions
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Tax credits. Attach the applicable credit forms. See instructions
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Total tax. Subtract line 21 from line 20 .
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Payments: a
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Tax deposited with Form 7004
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Credit for tax paid on undistributed capital gains (attach Form 2439)
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Credit for federal tax on fuels (attach Form 4136) .
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Total payments. Add lines 23a through 23c .
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Tax due. Subtract line 23d from line 22. See instructions for depository method of payment .
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Overpayment. Subtract line 22 from line 23d
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1
At any time during the 2020 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 .
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No
If “Yes,” enter the name of the foreign country
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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 .
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Yes
No
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Enter the amount of tax-exempt interest received or accrued during the tax year
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Date organization formed
5a
The books are in care of
b
Enter name of candidate
c
The books are located at
d
Telephone No.
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,
Sign
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return
Here
with the preparer shown below?
See instructions
Yes
No
Signature of officer
Date
Title
Print/Type preparer’s name
Preparer’s signature
Date
PTIN
Check
if
Paid
self-employed
Preparer
Firm’s name
Firm’s EIN
Use Only
Phone no.
Firm’s address
1120-POL
For Paperwork Reduction Act Notice, see instructions.
Form
(2020)
Cat. No. 11523K
1120-POL
U.S. Income Tax Return for Certain Political Organizations
OMB No. 1545-0123
Form
2020
Department of the Treasury
Go to www.irs.gov/Form1120POL for the latest information.
Internal Revenue Service
For calendar year 2020 or other tax year beginning
, 2020, and ending
, 20
Check the box if this is a section 501(c) organization .
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Employer identification number
Name of organization
Check if:
Final return
Number, street, and room or suite no. (If a P.O. box, see instructions.)
Name change
Address change
City or town, state or province, country, and ZIP or foreign postal code
Amended return
1
1
Dividends (attach statement) .
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Gross rents .
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Gross royalties .
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Capital gain net income (attach Schedule D (Form 1120)) .
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Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
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6
7
Other income and nonexempt function expenditures (see instructions) .
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7
8
Total income. Add lines 1 through 7
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Salaries and wages .
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Repairs and maintenance .
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Rents .
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Taxes and licenses .
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Interest
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Depreciation (attach Form 4562) .
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Other deductions (attach statement)
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Total deductions. Add lines 9 through 15
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16
17
Taxable income before specific deduction of $100. See instructions. Section 501(c) organizations show:
a
Amount of net investment income .
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b
Aggregate amount expended for an exempt function (attach statement)
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17c
18
Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g))
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18
19
Taxable income. Subtract line 18 from line 17c. If line 19 is zero or less, see the instructions .
19
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20
Income tax. See instructions
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20
21
Tax credits. Attach the applicable credit forms. See instructions
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21
22
Total tax. Subtract line 21 from line 20 .
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22
23
Payments: a
23a
Tax deposited with Form 7004
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b
Credit for tax paid on undistributed capital gains (attach Form 2439)
23b
c
Credit for federal tax on fuels (attach Form 4136) .
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23c
d
Total payments. Add lines 23a through 23c .
23d
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24
Tax due. Subtract line 23d from line 22. See instructions for depository method of payment .
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24
25
Overpayment. Subtract line 22 from line 23d
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25
1
At any time during the 2020 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 .
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.
Yes
No
If “Yes,” enter the name of the foreign country
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 .
.
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.
Yes
No
3
Enter the amount of tax-exempt interest received or accrued during the tax year
.
.
.
.
$
4
Date organization formed
5a
The books are in care of
b
Enter name of candidate
c
The books are located at
d
Telephone No.
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,
Sign
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return
Here
with the preparer shown below?
See instructions
Yes
No
Signature of officer
Date
Title
Print/Type preparer’s name
Preparer’s signature
Date
PTIN
Check
if
Paid
self-employed
Preparer
Firm’s name
Firm’s EIN
Use Only
Phone no.
Firm’s address
1120-POL
For Paperwork Reduction Act Notice, see instructions.
Form
(2020)
Cat. No. 11523K
2
Form 1120-POL (2020)
Page
General Instructions
Section references are to the Internal
Notice of Section 527 Status. An
organization that is required to file Form
Revenue Code unless otherwise noted.
Purpose of Form
8871 but fails to file it when due must
Future developments. For the latest
include in taxable income for the period
information about developments related to
Political organizations and certain exempt
before Form 8871 is filed its exempt
Form 1120-POL, such as legislation
organizations file Form 1120-POL to report
function income (including contributions
enacted after it was published, go to
their political organization taxable income
received, membership dues, and political
www.irs.gov/Form1120POL.
and income tax liability under section 527.
fundraising receipts), minus any deductions
Reminders
directly connected with the production of
Who Must File
that income. The organization may not
Form 8997, Initial and Annual Statement
A political organization, whether or not it is
deduct its exempt function expenditures
of Qualified Opportunity Fund (QOF)
tax exempt, must file Form 1120-POL if it
because section 162(e) denies a deduction
Investments. Use Form 8997 to identify
has any political organization taxable
for political campaign expenditures.
qualified investments held in a qualified
income.
opportunity fund at any time during the
Exempt Function and Exempt
An exempt organization that isn’t a
year. If you held a qualified investment in a
Function Income
political organization must file Form
qualified opportunity fund at any time
The exempt function of a political
1120-POL if it is treated as having political
during the year, you must file your Form
organization includes all activities that are
organization taxable income under section
1120-POL with Form 8997 attached. See
related to and support the process of
527(f)(1).
the instructions for Form 8997.
influencing or attempting to influence the
Political Organizations
Inclusion of global intangible low-taxed
selection, nomination, election, or
income (GILTI). P.L. 115-97 enacted new
A political organization is a party,
appointment of any individual to any
section 951A, which requires U.S.
committee, association, fund (including a
federal, state, or local public office, or
shareholders of controlled foreign
separate segregated fund described in
office of a political organization, or the
corporations to determine and include their
section 527(f)(3) set up by a section 501(c)
election of Presidential or Vice Presidential
GILTI in taxable income every year. Section
organization), or other organization,
electors, whether or not the individuals or
951A is effective for tax years of foreign
organized and operated primarily for the
electors are selected, nominated, elected,
corporations beginning after 2017, and to
purpose of accepting contributions or
or appointed. The term “exempt function”
tax years of U.S. shareholders in which or
making expenditures, or both, to influence
also means the making of expenditures
with which such tax years of foreign
the selection, nomination, election, or
relating to the individual’s office, once
corporations end. Use Form 8992, U.S.
appointment of any individual to any public
selected, nominated, elected, or appointed,
Shareholder Calculation of Global
office or office in a political organization, or
but only if the expenditures would be
Intangible Low-Taxed Income (GILTI), to
the election of Presidential or Vice
deductible by an individual under section
figure the domestic corporation’s GILTI and
Presidential electors. Political
162(a).
attach it to Form 1120-POL. See section
organizations include the following.
Exempt function income is the total of
951A for more information.
1. Newsletter fund, if it is a fund
all amounts received from the following
established and maintained by an
sources (to the extent that they are
How To Get Forms and
individual who holds, has been elected to,
separately segregated only for use for an
Publications
or is a candidate (as defined in section
exempt function).
Internet. You can access the IRS website 24
527(g)(3)) for nomination or election to any
• Contributions of money and property.
hours a day, 7 days a week, at www.irs.gov
federal, state, or local elective public office.
• Membership dues, fees, or assessments
to:
The fund must be maintained exclusively
paid by a member of a political party.
for the preparation and circulation of the
• Download forms, instructions, and
individual’s newsletter.
• Proceeds from a political fundraising or
publications;
entertainment event, or from the sale of
2. Separate segregated fund, if it is
• Order IRS products online;
political campaign materials, if those
maintained by a section 501(c) organization
• Research your tax questions online;
amounts aren’t received in the active
(exempt from tax under section 501(a)). For
conduct of a trade or business.
• Search publications online by topic or
more information, see section 527(f)(3) and
keyword;
Regulations section 1.527-6(f).
• Proceeds from the conduct of a bingo
game, as described in section 513(f)(2).
• View Internal Revenue Bulletins (IRBs)
Taxable Income
published in recent years; and
Specified Taxable Income
Political organization taxable income (line
• Sign up to receive local and national tax
Newsletter fund. Taxable income of a
19) is the excess of (a) gross income for
news by email.
newsletter fund is figured in the same
the tax year (excluding exempt function
Tax forms and publications. Go to
manner as taxable income of a political
income (defined later)) over (b) deductions
www.irs.gov/Forms to view, download, or
organization except that the specific
directly connected with the earning of
print all of the forms and publications you
deduction of $100 isn’t allowed.
gross income (excluding exempt function
may need. You can also download and
income). Taxable income is figured with the
Exempt organization that isn’t a political
view popular tax publications and
following adjustments.
organization. Gross income for an exempt
instructions (including the 1040 and 1040-
organization described in section 501(c)
1. A specific deduction of $100 is
SR instructions) on mobile devices as an
that isn’t a political organization should
allowed (but not for newsletter funds).
eBook at no charge. Or you can go to
include the lesser of:
www.irs.gov/OrderForms to place an order
2. The net operating loss deduction isn’t
1. The net investment income of the
and have forms mailed to you within 10
allowed.
organization for the tax year, or
business days.
3. The dividends-received deduction
2. The aggregate amount spent for an
and other special deductions for
Phone Help
exempt function during the tax year either
corporations aren’t allowed. See section
If you have questions and/or need help
directly or indirectly through another
527(c)(2)(C).
organization.
completing Form 1120-POL, please call
Effect of failure to file Form 8871. Unless
877-829-5500. This toll-free telephone
excepted (see Other Reports and Returns
service is available Monday through
That May Be Required, later), every
Friday.
political organization, in order to be
considered a tax-exempt organization,
must file Form 8871, Political Organization
3
Form 1120-POL (2020)
Page
Net investment income, for this purpose,
The organization isn’t authorizing the paid
• A political committee required to report
is the excess of:
preparer to receive any refund check, bind
under the Federal Election Campaign Act
the organization to anything (including any
of 1971 (2 U.S.C. 431 et seq.),
1. The gross amount of interest,
additional tax liability), or otherwise represent
dividends, rents, and royalties, plus the
• A political committee of a state or local
it before the IRS. If the organization wants to
excess, if any, of gains from the sale or
candidate,
expand the paid preparer’s authorization,
exchange of assets, over the losses from
• A state or local committee of a political
see Pub. 947, Practice Before the IRS and
the sale or exchange of assets; over
party, or
Power of Attorney.
2. The deductions directly connected
• A tax-exempt organization described in
However, the authorization will
with the production of this income.
section 501(c) that is treated as having
automatically end no later than the due
Taxable income is figured with the
political organization taxable income under
date (excluding extensions) for filing the
adjustments shown in (1), (2), and (3) under
section 527(f)(1).
2021 tax return. If you want to revoke the
Taxable Income, earlier.
2. Form 8872, Political Organization
authorization before it ends, see Pub. 947.
Report of Contributions and Expenditures
Who Must Sign
When and Where To File
(periodic reports are required during the
The return must be signed and dated by:
calendar year).
In general, an organization must file Form
• The president, vice president, treasurer,
1120-POL by the 15th day of the 4th month
Generally, a political organization that
assistant treasurer, chief accounting
after the end of the tax year.
files Form 8871 and accepts a contribution
officer; or
or makes an expenditure for an exempt
If the due date falls on a Saturday,
function during the calendar year must file
• Any other officer (such as tax officer)
Sunday, or legal holiday, the organization
this form. However, this form isn’t required
authorized to sign.
may file on the next business day.
to be filed by an organization excepted
Receivers, trustees, and assignees must
File Form 1120-POL with the:
from filing Form 8871 (see (1) earlier), or a
also sign and date any return filed on
Department of the Treasury
qualified state or local political organization
behalf of an organization.
Internal Revenue Service Center
(QSLPO) (see the Instructions for Form
If an employee of the organization
Ogden, UT 84201
8871, and Rev. Rul. 2003-49, 2003-20
completes Form 1120-POL, the Paid
I.R.B. 903, for the definition of a QSLPO).
If the organization’s principal business,
Preparer Use Only area should remain
office, or agency is located in a foreign
3. Form 990, Return of Organization
blank. In addition, anyone who prepares
country or a U.S. possession, the address
Exempt From Income Tax, or Form
Form 1120-POL but doesn’t charge the
for mailing their return should be:
990-EZ, Short Form Return of Organization
organization shouldn’t complete that
Exempt From Income Tax.
Internal Revenue Service Center
section. Generally, anyone who is paid to
P.O. Box 409101
An exempt political organization must
prepare the return must sign it and fill in
Ogden, UT 84409
also file one of these forms if its annual
the Paid Preparer Use Only area.
gross receipts are $25,000 or more
Private delivery services. Political
The paid preparer must complete the
($100,000 or more for a QSLPO).
organizations can use certain private
required preparer information and:
delivery services (PDS) designated by the
The following political organizations
• Sign the return in the space provided for
IRS to meet the “timely mailing as timely
aren’t required to file Form 990 or Form
the preparer’s signature, and
filing” rule for tax returns. Go to
990-EZ.
• Give a copy of the return to the taxpayer.
www.irs.gov/PDS for the current list of
• Any political organization excepted from
designated services.
Note: A paid preparer may sign original or
the requirement to file Form 8871.
amended returns by rubber stamp,
The PDS can tell you how to get written
• Any caucus or association of state or
mechanical device, or computer software
proof of the mailing date.
local officials.
program. Also, facsimile signatures are
For the IRS mailing address to use if
See the instructions for Form 990 or
authorized.
you’re using PDS, go to www.irs.gov/
Form 990-EZ.
PDSstreetAddresses.
Paid Preparer Authorization
Accounting Methods
PDS can’t deliver items to P.O.
If the organization wants to allow the IRS to
!
boxes. You must use the U.S.
Figure taxable income using the method of
discuss its 2020 tax return with the paid
Postal Service to mail any item
accounting regularly used in keeping the
preparer who signed it, check the “Yes”
to an IRS P.O. box address.
CAUTION
organization’s books and records.
box in the signature area of the return. This
Generally, permissible methods include:
authorization applies only to the individual
Extension. File Form 7004, Application for
whose signature appears in the Paid
Automatic Extension of Time To File
• Cash,
Preparer Use Only section of the return. It
Certain Business Income Tax, Information,
• Accrual, or
doesn’t apply to the firm, if any, shown in
and Other Returns, to request an extension
• Any other method authorized by the
that section.
of time to file.
Internal Revenue Code.
If the “Yes” box is checked, the
Other Reports and Returns That
In all cases, the method used must
organization is authorizing the IRS to call
May Be Required
clearly show taxable income.
the paid preparer to answer any questions
that may arise during the processing of its
Change in accounting method. Generally,
An organization that files Form 1120-POL
return. The organization is also authorizing
the organization may only change the
may also be required to file the following
the paid preparer to:
method of accounting used to report
forms.
taxable income (for income as a whole or
• Give the IRS any information that is
1. Form 8871.
for any material item) by getting consent on
missing from its return;
Generally, to be tax exempt, a political
Form 3115, Application for Change in
• Call the IRS for information about the
organization must file this form within 24
Accounting Method. For more information,
processing of its return or the status of any
hours of the date it is established and
see Pub. 538, Accounting Periods and
refund or payment(s); and
within 30 days of any material change in
Methods.
the organization. However, don’t file this
• Respond to certain IRS notices that the
form if the organization is:
organization may have shared with the
preparer about math errors, offsets, and
• An organization that reasonably expects
return preparation. The notices won’t be
its annual gross receipts to always be less
sent to the preparer.
than $25,000,
4
Form 1120-POL (2020)
Page
Accounting Period
Same-day payment option. If you fail to
month the tax isn’t paid, up to a maximum
submit a deposit transaction on EFTPS by
of 25% of the unpaid tax. If you receive a
The organization must figure its taxable
8 p.m. Eastern time the day before the date
notice about a penalty after you file this
income on the basis of a tax year. The tax
a deposit is due, you can still make the
return, reply to the notice with an
year is the annual accounting period the
deposit on time by using the Federal Tax
explanation and we will determine if you
organization uses to keep its records and
Application (FTA). Before using the same-
meet reasonable-cause criteria. Do not
report its income and expenses if that
day payment option, you will need to make
include an explanation when you file your
period is a calendar year or a fiscal year.
arrangements with your financial institution
return.
However, an organization that doesn’t keep
ahead of time. Please check with the
Other penalties. Other penalties can be
books or doesn’t have an annual
financial institution regarding availability,
imposed for negligence, substantial
accounting period must use the calendar
deadlines, and costs. To learn more about
understatement of tax, and fraud. See
year as its tax year. A new organization
making a same-day payment and to
sections 6662 and 6663.
must adopt its tax year by the due date
download the Same-Day Payment
(not including extensions) of its first income
Assembling the Return
Worksheet, visit www.EFTPS.gov.
tax return.
Deposits on business days only. If a
Attach Form 4136, Credit for Federal Tax
Change of tax year. After the organization
deposit is required to be made on a day
Paid on Fuels, after page 1 of Form
has adopted a tax year, it must get the
that isn’t a business day, the deposit is
1120-POL. Attach schedules in
consent of the IRS to change its tax year
considered timely if it is made by the close
alphabetical order and other forms in
by filing Form 1128, Application To Adopt,
of the next business day. A business day is
numerical order after Form 4136.
Change, or Retain a Tax Year. See
any day other than Saturday, Sunday, or a
Regulations section 1.442-1 and Pub. 538.
Complete every applicable entry space
legal holiday. For example, if a deposit is
on Form 1120-POL. Do not write “See
required to be made on a Friday and Friday
Rounding Off to Whole Dollars
attached” instead of completing the entry
is a legal holiday, the deposit will be
spaces. If you need more space on the
The organization may round off cents to
considered timely if it is made by the
forms or schedules, attach separate sheets
whole dollars on the return and
following Monday (if that Monday is a
using the same size and format as on the
accompanying schedules. If the
business day). The term “legal holiday”
printed forms. Show the totals on the
organization does round to whole dollars, it
means any legal holiday in the District of
printed forms. Attach these separate
must round all amounts. To round, drop
Columbia.
sheets after all the schedules and forms.
amounts under 50 cents and increase
If the organization owes tax
Be sure to put the organization’s name and
amounts from 50 to 99 cents to the next
!
when it files Form 1120-POL,
EIN on each sheet.
dollar. For example, $1.39 becomes $1 and
don’t include the payment with
$2.50 becomes $3.
Specific Instructions
CAUTION
the tax return. Instead,
If two or more amounts must be added
use EFTPS.
to figure the amount to enter on a line,
Period covered. File the 2020 return for
include cents when adding the amounts
Interest and Penalties
calendar year 2020 and fiscal years that
and round off only the total.
begin in 2020 and end in 2021. For a fiscal
Interest
year, fill in the tax year space at the top of
Federal Tax Deposits Must Be
the form.
Interest is charged on taxes paid late even
Made by Electronic Funds
if an extension of time to file is granted.
Note: The 2020 Form 1120-POL may also
Transfer
Interest is also charged on penalties
be used if:
imposed for failure to file, negligence,
You must use electronic funds transfer to
• The organization has a tax year of less
fraud, gross valuation overstatements, and
make all federal deposits (such as deposits
than 12 months that begins and ends in
substantial understatement of tax from the
of estimated tax, employment tax, and
2021, and
due date (including extensions) to the date
excise tax). Generally, electronic fund
• The 2021 Form 1120-POL isn’t available
of payment. The interest charge is figured
transfers are made using the Electronic
at the time the organization is required to
at a rate determined under section 6621.
Federal Tax Payment System (EFTPS). If
file its return. The organization must show
you don’t want to use EFTPS, you can
Penalties
its 2021 tax year on the 2020 Form
arrange for your tax professional, financial
1120-POL and take into account any tax
Penalties may be imposed if the
institution, payroll service, or other trusted
law changes that are effective for tax years
organization is required to file Form
third party to make deposits on your
beginning after 2020.
1120-POL and it fails to file the form by the
behalf. Also, you may arrange for your
due date. The following penalties may
Address. Include the suite, room, or other
financial institution to submit a same-day
apply if the organization doesn’t file its tax
unit number after the street address. If the
wire payment on your behalf. EFTPS is a
return by the due date, including
Post Office doesn’t deliver mail to the
free service provided by the Department of
extensions.
street address and the organization has a
the Treasury. Services provided by your tax
Late filing of return. The organization
P.O. box, show the box number instead of
professional, financial institution, payroll
the street address.
services, or other third party may have a
may be charged a penalty of 5% of the
fee. To get more information about EFTPS
unpaid tax for each month or part of a
Final return, name change, address
or to enroll in EFTPS, visit www.EFTPS.gov
month the return is late, up to a maximum
change, amended return. If the
or call 800-555-4477. Additional
of 25% of the unpaid tax. The minimum
organization ceases to exist, check the
information about EFTPS is available in
penalty for a return that is more than 60
“Final return” box.
Pub. 966, Electronic Federal Tax Payment
days late is the smaller of the tax due or
If the organization has changed its name
System: A Guide to Getting Started.
$435. If you receive a notice about a
since it last filed a return, check the “Name
penalty after you file this return, reply to the
Depositing on time. For deposits made by
change” box.
notice with an explanation and we will
EFTPS to be on time, you must submit the
If the organization has changed its
determine if you meet reasonable-cause
deposit by 8 p.m. Eastern time the day
address since it last filed a return, check
criteria. Do not include an explanation
before the date the deposit is due. If you
the “Address change” box.
when you file your return.
use a third party to make deposits on its
Note: If a change in address occurs after
behalf, they may have different cutoff
Late payment of tax. An organization that
the return is filed, the organization should
times.
doesn’t pay the tax when due generally
use Form 8822-B, Change of Address or
may have to pay a penalty of ½ of 1% of
Responsible Party—Business, to notify the
the unpaid tax for each month or part of a
IRS of the new address.
5
Form 1120-POL (2020)
Page
Amended return. If you are filing an
credit for employer differential wage
Also include on this line:
payments). See Form 3800, General
amended Form 1120-POL:
• Expenditures that were made from
Business Credit.
• Check the “Amended return” box,
exempt function income that weren’t for an
Enter the total amount of qualified
exempt function and resulted in direct or
• Complete the entire return,
credits on line 21 and attach the
indirect financial benefit to the political
• Correct the appropriate lines with the
applicable credit forms.
organization (see Regulations section
new information, and
1.527-5 for examples), and
If Form 8978 was filed, attach to Form
• Refigure the tax liability.
1120-POL. Do not enter any amount from
• Illegal expenditures.
Attach a sheet that explains the reason
Form 8978, line 14, on line 21.
Attach a schedule listing all income and
for the amendments and identifies the lines
Line 22. Total tax. If the political
expenditures included on line 7.
and amounts being changed on the
organization must recapture any of the
If you have a section 965(a) inclusion for
amended return. Generally, the amended
qualified electric vehicle credit, include the
the tax year, enter the net amount (the
return must be filed within 3 years after the
amount of the recapture in the total for line
section 965(a) inclusion less the
date the original return was due or 3 years
22. On the dotted line next to the entry
corresponding section 965(c) deduction) on
after the date the organization filed it,
space, write “QEV recapture” and the
this line 7. You must also complete and
whichever is later.
amount. See Regulations section 1.30-1 for
attach Form 965, Inclusion of Deferred
Employer identification number (EIN).
details on how to figure the recapture.
Foreign Income Upon Transition to
Enter the nine-digit EIN assigned to the
Participation Exemption System,
Line 23d. Total payments. If an election to
organization. If the organization doesn’t
applicable schedules, and Form 965-B,
pay the section 965 net tax liability in
have an EIN, it must apply for one. An EIN
Corporate and Real Estate Investment
installments has been made under section
can be applied for online by visiting the IRS
Trust (REIT) Report of Net 965 Tax Liability
965(h), complete and attach Form 965-B.
website at www.irs.gov/EIN. The
and Electing REIT Report of 965 Amounts.
Enter the amount of current year net
organization may also apply for an EIN by
section 965 tax liability (from Form 965-B,
Line 17. Taxable income before specific
faxing or mailing Form SS-4 to the IRS.
Part I, line 4, column (d)) less the current
deduction of $100. Political organizations,
Customers outside the United States or
year section 965 installment payment (from
newsletter funds, and separate segregated
U.S. possessions may also apply for an
Form 965-B, Part II, line 4, column (k)).
funds figure their tax by subtracting line 16
EIN by calling 267-941-1099 (toll call).
from line 8 and enter the result on line 17(c).
What if You Can’t Pay in Full?
The online application process isn’t yet
Exempt organizations (section 501(c))
available for organizations with addresses
If you can’t pay the full amount of tax you
that aren’t political organizations.
in foreign countries.
owe, you can apply for an installment
Complete lines 17a and 17b if the
agreement online.
If the organization hasn’t received its
organization made exempt function
EIN by the time the return is due, write
You can apply for an installment
expenditures that weren’t from a separate
“Applied for” in the space provided for the
agreement online if:
segregated fund. Enter on line 17c the
EIN. See Pub. 583, Starting a Business and
smaller of line 17a or 17b. See Exempt
• You can’t pay the full amount shown on
Keeping Records, for details.
organization that isn’t a political
line 24,
Income and deductions. Campaign
organization, earlier, for an explanation of
• The total amount you owe is $25,000 or
contributions and other exempt function
the amounts to enter on these lines.
less, and
income are generally not includible in
Line 19. Taxable income. If the taxable
• You can pay the liability in full in 24
income; likewise, campaign expenditures
income on line 19 is zero or less, the Form
months.
and other exempt function expenditures
1120-POL isn’t required to be filed, but it
aren’t deductible. To be deductible in
To apply using the Online Payment
may be filed to start the statute of
figuring political organization taxable
Agreement Application, go to
limitations period.
income, expenses must be directly
www.irs.gov/OPA.
Line 20. Income tax. The tax rate for
connected with the production of political
Under an installment agreement, you can
1120-POL filers is 21%. Figure your tax by
organization taxable income. In those
pay what you owe in monthly installments.
multiplying line 19 by 21% (0.21) and enter
cases where expenses are attributable to
There are certain conditions you must meet
the result on line 20.
the production of both exempt function
to enter into and maintain an installment
income and political organization taxable
Note: Estimated tax and alternative
agreement, such as paying the liability
income, the expenses should be allocated
minimum tax don’t apply to political
within 24 months and making all required
on a reasonable and consistent basis. Only
organizations.
deposits and timely filing tax returns during
the portion allocable to the production of
If Form 8978, Partner’s Additional
the length of the agreement.
political organization taxable income may
Reporting Year Tax, was filed, attach it to
If your installment agreement is
be deducted. No deduction is allowed for
Form 1120-POL. Do not enter any amount
accepted, you will be charged a fee and
general administrative or indirect expenses.
from Form 8978, line 14, on line 20.
you will be subject to penalties and interest
Line 7. Other income and nonexempt
Line 21. Tax credits. The organization
on the amount of tax not paid by the due
function expenditures. Enter the income
may qualify for the following credits.
date of the return.
from other sources, such as the following.
• Employer credit for paid family and
Additional Information
• Exempt function income that wasn’t
medical leave. See Form 8994, Employer
properly segregated for exempt functions.
Credit for Paid Family and Medical Leave.
Question 1
• Income received in the ordinary course
• Foreign tax credit. See Form 1118,
Foreign financial accounts. Check the
of a trade or business.
Foreign Tax Credit—Corporations.
“Yes” box if either (1) or (2) next applies to
• Ordinary income from the trade or
• Qualified electric vehicle credit
the organization. Otherwise, check the
business activities of a partnership (from
(carryforward ONLY). See Form 8834,
“No” box.
Schedule K-1 (Form 1065), Partner’s Share
Qualified Electric Vehicle Credit.
1. At any time during the 2020 calendar
of Income, Deductions, Credits, etc., Part
• General business credit (excluding
year the organization had a financial
III, box 1).
the small employer health insurance
interest in or signature or other authority
• Exempt function income (minus any
premium credit, work opportunity credit,
over a bank, securities, or other types of
deductions directly connected with the
employee retention credit (Form 5884-A),
financial accounts in a foreign country; and
production of that income) taxable under
the empowerment zone employment credit,
• The combined value of the accounts was
section 527(i)(4) for failure to timely file
the Indian employment credit, and the
more than $10,000 at any time during the
Form 8871. Include amounts whether or not
calendar year; and
segregated for use for an exempt function.
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