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

What is 1120-POL?

Political parties, campaign committees, and similar section 527 organizations are generally not taxed on their exempt function income: contributions, membership dues, and fundraising proceeds used for political activity. They are taxed on other income, most commonly interest, dividends, and rents. Form 1120-POL reports that taxable income and figures the tax at the highest corporate rate.

Certain tax-exempt organizations that spend money on political activity can also owe tax under section 527(f) and report it on this form. Filing is only required for a year in which the organization has taxable income after the specific deduction allowed on the form.

Who files 1120-POL?

• Political organizations under section 527 with taxable income for the year, such as investment earnings
• Political parties and candidate campaign committees meeting that threshold
• Section 501(c) exempt organizations taxed on political expenditures under section 527(f)
• Organizations with no taxable income generally do not need to file this form for that year

How to fill out 1120-POL

1. Enter the organization’s name, address, and EIN, and check the boxes describing the type of filer.
2. Report taxable income items, typically interest, dividends, rents, and gains, on the income lines.
3. Deduct expenses directly connected with producing that income, then subtract the specific deduction to reach taxable income.
4. Compute the tax, apply any payments, and sign the return.
5. Download the finished PDF and file by the due date in the current instructions. Related filings like Form 8871 and Form 8872 cover registration and contribution reporting separately.