Federal U.S. Income Tax Return for Certain Political Organizations
Extracted from PDF file 2018-federal-form-1120-pol.pdf, last modified November 2018
U.S. Income Tax Return for Certain Political Organizations1120-POL Form U.S. Income Tax Return for Certain Political Organizations Department of the Treasury Internal Revenue Service ▶ Go 2018 to www.irs.gov/Form1120POL for the latest information. For calendar year 2018 or other tax year beginning Check the box if this is a section 501(c) organization . . . . . . . . . , 2018, and ending . . . . . . . , 20 . . . . . . . . . . ▶ Employer identification number Name of organization Check if: OMB No. 1545-0123 Final return Number, street, and room or suite no. (If a P.O. box, see instructions.) Name change Address change Deductions Income Amended return 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Tax a b 18 19 20 21 22 23 24 25 Dividends (attach statement) . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . Other income and nonexempt function expenditures (see instructions) . . . . . . . . Total income. Add lines 1 through 7 . . . . . . . . . . . . . . . . . . Salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Depreciation (attach Form 4562) . . . . . . . . . . . . . . . . . . . . Other deductions (attach statement) . . . . . . . . . . . . . . . . . . Total deductions. Add lines 9 through 15 . . . . . . . . . . . . . . . . Taxable income before specific deduction of $100. See instructions. Section 501(c) organizations show: Amount of net investment income . . . . . . . . . . . . . ▶ Aggregate amount expended for an exempt function (attach statement) . ▶ Specific deduction of $100 (not allowed for newsletter funds defined under section 527(g)) . Taxable income. Subtract line 18 from line 17c. If line 19 is zero or less, see the instructions . Income tax. See instructions . . . . . . . . . . . . . . . . . . . . Tax credits. Attach the applicable credit forms. See instructions . . . . . . . . . Total tax. Subtract line 21 from line 20 . . . . . . . . . . . . . . . . . . Payments: a Tax deposited with Form 7004 . . . . . . . . 23a 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 payments. Add lines 23a through 23c . . . . . . . . . . . Tax due. Subtract line 23d from line 22. See instructions for depository method of payment . Overpayment. Subtract line 22 from line 23d . . . . . . . . . . . . . . . Additional Information 1 2 3 4 5a c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 . . . . . . . . . . 17c 18 19 20 21 22 . . . . . . 23d 24 25 At any time during the 2018 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 . . . . . . . . . . . . . . . . . . If “Yes,” enter the name of the foreign country ▶ 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 . . . . . . . . . . Enter the amount of tax-exempt interest received or accrued during the tax year . . . ▶ $ Date organization formed ▶ The books are in care of ▶ b Enter name of candidate ▶ ▶ The books are located at d Telephone No. ▶ Yes No Yes 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, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Paid Preparer Use Only Signature of officer Print/Type preparer’s name Firm’s name ▶ Firm’s address ▶ Date Preparer’s signature For Paperwork Reduction Act Notice, see instructions. ▲ ▲ Sign Here City or town, state or province, country, and ZIP or foreign postal code May the IRS discuss this return with the preparer shown below? See instructions Yes No Title Date PTIN Check if self-employed Firm’s EIN ▶ Phone no. Cat. No. 11523K Form 1120-POL (2018) Page 2 Form 1120-POL (2018) Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form 1120-POL, such as legislation enacted after it was published, go to www.irs.gov/Form1120POL. What’s New 21% tax rate. P.L. 115-97 replaced the graduated corporate tax structure with a flat 21% corporate tax rate, effective for tax years beginning after 2017. The 21% rate applies to both a principal campaign committee and a political organization that is not a principal campaign committee. P.L. 115-97 amended section 965. As a result of the amendment, certain taxpayers are required to include in income an amount (section 965(a) inclusion amount) based on the accumulated post-1986 deferred foreign income of certain foreign corporations of which they are U.S. shareholders, either directly or indirectly through other entities. Other taxpayers may have inclusions in income under section 951(a) by reason of section 965 due to ownership of deferred foreign income corporations (DFICs) through pass-through entities that are themselves U.S. shareholders of DFICs. Section 965 also allows for a deduction (section 965(c) deduction). Section 965(a) inclusions and corresponding section 965(c) deductions are taken into account in the U.S. shareholder’s year that includes the last day of the relevant foreign corporation’s last tax year that began before January 1, 2018. Inclusion of global intangible low-taxed income (GILTI). P.L. 115-97 enacted new section 951A, which requires U.S. shareholders of controlled foreign corporations to determine and include their GILTI in taxable income every year. Section 951A is effective for tax years of foreign corporations beginning after 2017, and to tax years of U.S. shareholders in which or with which such tax years of foreign corporations end. Use Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), to figure the domestic corporation's GILTI and attach it to Form 1120-POL. See section 951A for more information. Form 8994, Employer Credit for Paid Family and Medical Leave. Form 8994 can be filed with Form 1120-POL. This is a new general business credit explained in P.L. 115-97, section 13403. Reminder For tax years beginning after 2015, the due date of filing Form 1120-POL is the 15th day of the 4th month after the end of the organization’s tax year. How To Get Forms and Publications Internet. You can access the IRS website 24 hours a day, 7 days a week, at www.irs.gov to: • Download forms, instructions, and publications; • Order IRS products online; • Research your tax questions online; • Search publications online by topic or keyword; • View Internal Revenue Bulletins (IRBs) published in recent years; and • Sign up to receive local and national tax news by email. Tax forms and publications. Go to www.irs.gov/Forms to view, download, or print all of the forms and publications you may need. You can also download and view popular tax publications and instructions (including the 1040 instructions) on mobile devices as an eBook at no charge. Or, you can go to www.irs.gov/OrderForms to place an order and have forms mailed to you within 10 business days. General Instructions Purpose of Form Political organizations and certain exempt organizations file Form 1120-POL to report their political organization taxable income and income tax liability under section 527. Phone Help If you have questions and/or need help completing Form 1120-POL, please call 877-829-5500. This toll-free telephone service is available Monday through Friday. Who Must File A political organization, whether or not it is tax exempt, must file Form 1120-POL if it has any political organization taxable income. An exempt organization that isn’t a political organization must file Form 1120-POL if it is treated as having political organization taxable income under section 527(f)(1). Political Organizations A political organization is a party, committee, association, fund (including a separate segregated fund described in section 527(f)(3) set up by a section 501(c) organization), or other organization, organized and operated primarily for the purpose of accepting contributions or making expenditures, or both, to influence the selection, nomination, election, or appointment of any individual to any public office or office in a political organization, or the election of Presidential or Vice Presidential electors. Political organizations include the following. 1. Newsletter fund, if it is a fund established and maintained by an individual who holds, has been elected to, or is a candidate (as defined in section 527(g)(3)) for nomination or election to any federal, state, or local elective public office. The fund must be maintained exclusively for the preparation and circulation of the individual’s newsletter. 2. Separate segregated fund, if it is maintained by a section 501(c) organization (exempt from tax under section 501(a)). For more information, see section 527(f)(3) and Regulations section 1.527-6(f). Taxable Income Political organization taxable income (line 19) is the excess of (a) gross income for the tax year (excluding exempt function income (defined later)) over (b) deductions directly connected with the earning of gross income (excluding exempt function income). Taxable income is figured with the following adjustments. 1. A specific deduction of $100 is allowed (but not for newsletter funds). 2. The net operating loss deduction isn’t allowed. 3. The dividends-received deduction and other special deductions for corporations aren’t allowed. See section 527(c)(2)(C). Effect of failure to file Form 8871. Unless excepted (see Other Reports and Returns That May Be Required, later) every political organization, in order to be considered a tax-exempt organization, must file Form 8871, Political Organization Notice of Section 527 Status. An organization that is required to file Form 8871 but fails to file it when due must include in taxable income for the period before Form 8871 is filed its exempt function income (including contributions received, membership dues, and political fundraising receipts), minus any deductions directly connected with the production of that income. The organization may not deduct its exempt function expenditures because section 162(e) denies a deduction for political campaign expenditures. Exempt Function and Exempt Function Income The exempt function of a political organization includes all activities that are related to and support the process of influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, or local public office, or office of a political organization, or the election of Presidential or Vice Presidential electors, whether or not the individuals or electors are selected, nominated, elected, or appointed. The term “exempt function” also means the making of expenditures relating to the individual’s office, once selected, nominated, elected, or appointed, but only if the expenditures would be deductible by an individual under section 162(a). Exempt function income is the total of all amounts received from the following sources (to the extent that they are separately segregated only for use for an exempt function). Page 3 Form 1120-POL (2018) • Contributions of money and property. • Membership dues, fees, or assessments paid by a member of a political party. • Proceeds from a political fundraising or entertainment event, or from the sale of political campaign materials, if those amounts aren’t received in the active conduct of a trade or business. • Proceeds from the conduct of a bingo game, as described in section 513(f)(2). Specified Taxable Income Newsletter fund. Taxable income of a newsletter fund is figured in the same manner as taxable income of a political organization except that the specific deduction of $100 isn’t allowed. Exempt organization that isn’t a political organization. Gross income for an exempt organization described in section 501(c) that isn’t a political organization should include the lesser of: 1. The net investment income of the organization for the tax year, or 2. The aggregate amount spent for an exempt function during the tax year either directly or indirectly through another organization. Net investment income, for this purpose, is the excess of: 1. The gross amount of interest, dividends, rents, and royalties, plus the excess, if any, of gains from the sale or exchange of assets, over the losses from the sale or exchange of assets; over 2. The deductions directly connected with the production of this income. Taxable income is figured with the adjustments shown in (1), (2), and (3) under Taxable Income, earlier. Who Must Sign The return must be signed and dated by: • The president, vice president, treasurer, assistant treasurer, chief accounting officer; or • Any other officer (such as tax officer) authorized to sign. Receivers, trustees, and assignees must also sign and date any return filed on behalf of an organization. If an employee of the organization completes Form 1120-POL, the Paid Preparer Use Only area should remain blank. In addition, anyone who prepares Form 1120-POL but doesn’t charge the organization shouldn’t complete that section. Generally, anyone who is paid to prepare the return must sign it and fill in the Paid Preparer Use Only area. The paid preparer must complete the required preparer information and: • Sign the return in the space provided for the preparer’s signature, and • Give a copy of the return to the taxpayer. Note: A paid preparer may sign original or amended returns by rubber stamp, mechanical device, or computer software program. Also, facsimile signatures are authorized. Paid Preparer Authorization If the organization wants to allow the IRS to discuss its 2018 tax return with the paid preparer who signed it, check the “Yes” box in the signature area of the return. This authorization applies only to the individual whose signature appears in the Paid Preparer Use Only section of the return. It doesn’t apply to the firm, if any, shown in that section. If the “Yes” box is checked, the organization is authorizing the IRS to call the paid preparer to answer any questions that may arise during the processing of its return. The organization is also authorizing the paid preparer to: • Give the IRS any information that is missing from its return; • Call the IRS for information about the processing of its return or the status of any refund or payment(s); and • Respond to certain IRS notices that the organization may have shared with the preparer about math errors, offsets, and return preparation. The notices won’t be sent to the preparer. The organization isn’t authorizing the paid preparer to receive any refund check, bind the organization to anything (including any additional tax liability), or otherwise represent it before the IRS. If the organization wants to expand the paid preparer’s authorization, see Pub. 947, Practice Before the IRS and Power of Attorney. However, the authorization will automatically end no later than the due date (excluding extensions) for filing the 2019 tax return. If you want to revoke the authorization before it ends, see Pub. 947. When and Where To File In general, an organization must file Form 1120-POL by the 15th day of the 4th month after the end of the tax year. If the due date falls on a Saturday, Sunday, or legal holiday, the organization may file on the next business day. File Form 1120-POL with the: Department of the Treasury Internal Revenue Service Center Ogden, UT 84201 If the organization’s principal business, office, or agency is located in a foreign country or a U.S. possession, the address for mailing their return should be: Internal Revenue Service Center P.O. Box 409101 Ogden, UT 84409 Private delivery services. Political organizations can use certain private delivery services (PDS) designated by the IRS to meet the “timely mailing as timely filing” rule for tax returns. Go to www.irs.gov/PDS for the current list of designated services. The PDS can tell you how to get written proof of the mailing date. For the IRS mailing address to use if you’re using PDS, go to www.irs.gov/ PDSstreetAddresses. ! ▲ CAUTION PDS can’t deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address. Extension. File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an extension of time to file. Other Reports and Returns That May Be Required An organization that files Form 1120-POL may also be required to file the following forms. 1. Form 8871. Generally, to be tax exempt, a political organization must file this form within 24 hours of the date it is established and within 30 days of any material change in the organization. However, don’t file this form if the organization is: • An organization that reasonably expects its annual gross receipts to always be less than $25,000, • A political committee required to report under the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.), • A political committee of a state or local candidate, • A state or local committee of a political party, or • A tax-exempt organization described in section 501(c) that is treated as having political organization taxable income under section 527(f)(1). 2. Form 8872, Political Organization Report of Contributions and Expenditures (periodic reports are required during the calendar year). Generally, a political organization that files Form 8871 and accepts a contribution or makes an expenditure for an exempt function during the calendar year must file this form. However, this form isn’t required to be filed by an organization excepted from filing Form 8871 (see above), or a qualified state or local political organization (QSLPO) (see the Instructions for Form 8871, and Rev. Rul. 2003-49, 2003-20 I.R.B. 903, for the definition of a QSLPO). 3. Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax. An exempt political organization must also file one of these forms if its annual gross receipts are $25,000 or more ($100,000 or more for a QSLPO). The following political organizations aren’t required to file Form 990. • Any political organization excepted from the requirement to file Form 8871. • Any caucus or association of state or local officials. See the Instructions for Form 990 or Form 990-EZ. Page 4 Form 1120-POL (2018) Accounting Methods Figure taxable income using the method of accounting regularly used in keeping the organization’s books and records. Generally, permissible methods include: • Cash, • Accrual, or • Any other method authorized by the Internal Revenue Code. In all cases, the method used must clearly show taxable income. Change in accounting method. Generally, the organization may only change the method of accounting used to report taxable income (for income as a whole or for any material item) by getting consent on Form 3115, Application for Change in Accounting Method. For more information, see Pub. 538, Accounting Periods and Methods. Accounting Period The organization must figure its taxable income on the basis of a tax year. The tax year is the annual accounting period the organization uses to keep its records and report its income and expenses if that period is a calendar year or a fiscal year. However, an organization that doesn’t keep books or doesn’t have an annual accounting period must use the calendar year as its tax year. A new organization must adopt its tax year by the due date (not including extensions) of its first income tax return. Change of tax year. After the organization has adopted a tax year, it must get the consent of the IRS to change its tax year by filing Form 1128, Application To Adopt, Change, or Retain a Tax Year. See Regulations section 1.442-1 and Pub. 538. Rounding Off to Whole Dollars The organization may round off cents to whole dollars on the return and accompanying schedules. If the organization does round to whole dollars, it must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If two or more amounts must be added to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Federal Tax Deposits Must Be Made by Electronic Funds Transfer You must use electronic funds transfer to make all federal deposits (such as deposits of estimated tax, employment tax, and excise tax). Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Also, you may arrange for your financial institution to submit a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of the Treasury. Services provided by your tax professional, financial institution, payroll services, or other third party may have a fee. To get more information about EFTPS or to enroll in EFTPS, visit www.EFTPS.gov or call 1-800-555-4477. Additional information about EFTPS is available in Pub. 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Depositing on time. For deposits made by EFTPS to be on time, you must submit the deposit by 8 p.m. Eastern time the day before the date the deposit is due. If you use a third party to make deposits on its behalf, they may have different cutoff times. Same-day payment option. If you fail to submit a deposit transaction on EFTPS by 8 p.m. Eastern time the day before the date a deposit is due, you can still make the deposit on time by using the Federal Tax Application (FTA). Before using the sameday payment option, you will need to make arrangements with your financial institution ahead of time. Please check with the financial institution regarding availability, deadlines, and costs. To learn more about making a same-day payment and download the Same-Day Payment Worksheet, visit www.EFTPS.gov. Deposits on business days only. If a deposit is required to be made on a day that isn’t a business day, the deposit is considered timely if it is made by the close of the next business day. A business day is any day other than Saturday, Sunday, or a legal holiday. For example, if a deposit is required to be made on a Friday and Friday is a legal holiday, the deposit will be considered timely if it is made by the following Monday (if that Monday is a business day). The term “legal holiday” means any legal holiday in the District of Columbia. ! ▲ If the organization owes tax when it files Form 1120-POL, don’t include the payment with CAUTION the tax return. Instead, use EFTPS. Interest and Penalties Interest Interest is charged on taxes paid late even if an extension of time to file is granted. Interest is also charged on penalties imposed for failure to file, negligence, fraud, gross valuation overstatements, and substantial understatement of tax from the due date (including extensions) to the date of payment. The interest charge is figured at a rate determined under section 6621. Penalties Penalties may be imposed if the organization is required to file Form 1120-POL and it fails to file the form by the due date. The following penalties may apply if the organization doesn’t file its tax return by the due date, including extensions. Late filing of return. The organization may be charged a penalty of 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $210. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Do not include an explanation when you file your return. Late payment of tax. An organization that doesn’t pay the tax when due generally may have to pay a penalty of ½ of 1% of the unpaid tax for each month or part of a month the tax isn’t paid, up to a maximum of 25% of the unpaid tax. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Do not include an explanation when you file your return. Other penalties. Other penalties can be imposed for negligence, substantial understatement of tax, and fraud. See sections 6662 and 6663. Assembling the Return Attach Form 4136, Credit for Federal Tax Paid on Fuels, after page 1 of Form 1120-POL. Attach schedules in alphabetical order and other forms in numerical order after Form 4136. Complete every applicable entry space on Form 1120-POL. Do not write “See attached” instead of completing the entry spaces. If you need more space on the forms or schedules, attach separate sheets using the same size and format as on the printed forms. Show the totals on the printed forms. Attach these separate sheets after all the schedules and forms. Be sure to put the organization’s name and EIN on each sheet. Specific Instructions Period covered. File the 2018 return for calendar year 2018 and fiscal years that begin in 2018 and end in 2019. For a fiscal year, fill in the tax year space at the top of the form. Note: The 2018 Form 1120-POL may also be used if: • The organization has a tax year of less than 12 months that begins and ends in 2019, and • The 2019 Form 1120-POL isn’t available at the time the organization is required to file its return. The organization must show its 2019 tax year on the 2018 Form 1120-POL and take into account any tax law changes that are effective for tax years beginning after 2018. Page 5 Form 1120-POL (2018) Address. Include the suite, room, or other unit number after the street address. If the Post Office doesn’t deliver mail to the street address and the organization has a P.O. box, show the box number instead of the street address. Final return, name change, address change, amended return. If the organization ceases to exist, check the “Final return” box. If the organization has changed its name since it last filed a return, check the “Name change” box. If the organization has changed its address since it last filed a return, check the “Address change” box. Note: If a change in address occurs after the return is filed, the organization should use Form 8822-B, Change of Address or Responsible Party—Business, to notify the IRS of the new address. Amended return. If you are filing an amended Form 1120-POL: • Check the “Amended return” box, • Complete the entire return, • Correct the appropriate lines with the new information, and • Refigure the tax liability. Attach a sheet that explains the reason for the amendments and identifies the lines and amounts being changed on the amended return. Generally, the amended return must be filed within 3 years after the date the original return was due or 3 years after the date the organization filed it, whichever is later. Employer identification number (EIN). Enter the nine-digit EIN assigned to the organization. If the organization doesn’t have an EIN, it must apply for one. An EIN can be applied for online by visiting the IRS website at www.irs.gov/EIN. The organization may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. Customers outside the United States or U.S. possessions may also apply for an EIN by calling 267-941-1099 (toll call). The online application process isn’t yet available for organizations with addresses in foreign countries. If the organization hasn’t received its EIN by the time the return is due, write “Applied for” in the space provided for the EIN. See Pub. 583, Starting a Business and Keeping Records, for details. Income and deductions. Campaign contributions and other exempt function income are generally not includible in income; likewise, campaign expenditures and other exempt function expenditures aren’t deductible. To be deductible in figuring political organization taxable income, expenses must be directly connected with the production of political organization taxable income. In those cases where expenses are attributable to the production of both exempt function income and political organization taxable income, the expenses should be allocated on a reasonable and consistent basis. Only the portion allocable to the production of political organization taxable income may be deducted. No deduction is allowed for general administrative or indirect expenses. Line 7. Other income and nonexempt function expenditures. Enter the income from other sources, such as the following. • Exempt function income that wasn’t properly segregated for exempt functions. • Income received in the ordinary course of a trade or business. • Ordinary income from the trade or business activities of a partnership (from Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., Part III, box 1). • Exempt function income (minus any deductions directly connected with the production of that income) taxable under section 527(i)(4) for failure to timely file Form 8871. Include amounts whether or not segregated for use for an exempt function. Also include on this line: • Expenditures that were made from exempt function income that weren’t for an exempt function and resulted in direct or indirect financial benefit to the political organization (see Regulations section 1.527-5 for examples), and • Illegal expenditures. Attach a schedule listing all income and expenditures included on line 7. If you have a section 965(a) inclusion for the tax year, enter the net amount (the section 965(a) inclusion less the corresponding section 965(c) deduction) on this line 7. You must also complete and attach Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, applicable schedules, and Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts. Line 17. Taxable income before specific deduction of $100. Political organizations, newsletter funds, and separate segregated funds figure their tax by subtracting line 16 from line 8 and enter the result on line 17(c). Exempt organizations (section 501(c)) that aren’t political organizations. Complete lines 17a and 17b if the organization made exempt function expenditures that weren’t from a separate segregated fund. Enter on line 17c the smaller of line 17a or 17b. See Exempt organization that isn’t a political organization, earlier, for an explanation of the amounts to enter on these lines. Line 19. Taxable income. If the taxable income on line 19 is zero or less, the Form 1120-POL isn’t required to be filed, but it may be filed to start the statute of limitations period. Line 20. Income tax. For tax years beginning after 2017, the tax rate for 1120-POL filers is 21%. Figure your tax by multiplying line 19 by 21% (0.21) and enter the result on line 20. Note: Estimated tax and alternative minimum tax don’t apply to political organizations. Line 21. Tax credits. The organization may qualify for the following credits. • Foreign tax credit. See Form 1118, Foreign Tax Credit—Corporations. • Qualified electric vehicle credit (carryforward ONLY). See Form 8834, Qualified Electric Vehicle Credit. • General business credit (excluding the small employer health insurance premium credit, work opportunity credit, employee retention credit (Form 5884-A), the empowerment zone employment credit, the Indian employment credit, and the credit for employer differential wage payments). See Form 3800, General Business Credit. Enter the total amount of qualified credits on line 21 and attach the applicable credit forms. Line 22. Total tax. If the political organization must recapture any of the qualified electric vehicle credit, include the amount of the recapture in the total for line 22. On the dotted line next to the entry space, write “QEV recapture” and the amount. See Regulations section 1.30-1 for details on how to figure the recapture. Line 23d. Total payments. If an election to pay the section 965 net tax liability in installments has been made under section 965(h), complete and attach Form 965-B. Enter the amount of current year net section 965 tax liability (from Form 965-B, Part I, column (d), line 2) less the current year section 965 installment payment (from Form 965-B, Part II, column (k), line 2). What if You Can’t Pay in Full? If you can’t pay the full amount of tax you owe, you can apply for an installment agreement online. You can apply for an installment agreement online if: • You can’t pay the full amount shown on line 24, • The total amount you owe is $25,000 or less, and • You can pay the liability in full in 24 months. To apply using the Online Payment Agreement Application, go to www.irs.gov/OPA. Under an installment agreement, you can pay what you owe in monthly installments. There are certain conditions you must meet to enter into and maintain an installment agreement, such as paying the liability within 24 months and making all required deposits and timely filing tax returns during the length of the agreement. If your installment agreement is accepted, you will be charged a fee and you will be subject to penalties and interest on the amount of tax not paid by the due date of the return. Page 6 Form 1120-POL (2018) Additional Information Question 1 Foreign financial accounts. Check the “Yes” box if either (1) or (2) below applies to the organization. Otherwise, check the “No” box. 1. At any time during the 2018 calendar year the organization had a financial interest in or signature or other authority over a bank, securities, or other types of financial accounts in a foreign country; and • The combined value of the accounts was more than $10,000 at any time during the calendar year; and • The accounts weren’t with a U.S. military banking facility operated by a U.S. financial institution. 2. The organization owns more than 50% of the stock in any corporation that would answer “Yes” to item (1) above. See FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to find out if the organization is considered to have an interest in or signature or other authority over a financial account in a foreign country. If “Yes” is checked for this question, file FinCEN Form 114 electronically with the Department of the Treasury using FinCEN’s BSA E-Filing System. Because FinCEN Form 114 isn’t a tax form, don’t file it with Form 1120-POL. See www.FINCEN.gov for more information. Also, if “Yes” is checked for this question, enter the name of the foreign country or countries. Attach a separate sheet if more space is needed. Question 2 If you checked “Yes” to Question 2, the organization may be required to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. For details, see the Instructions for Form 3520. Note: An owner of a foreign trust must ensure that the trust files an annual information return on Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. For details, see the Instructions for Form 3520-A. Question 3 In the space provided, show any taxexempt interest income received or accrued. Include any exempt-interest dividends received as a shareholder in a mutual fund or other regulated investment company. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for business taxpayers filing this form is approved under OMB control number 1545-0123 and is included in the estimates shown in the instructions for Form 1120. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/FormComments. Or you can write to: Internal Revenue Service Tax Forms and Publications 1111 Constitution Ave. NW, IR-6526 Washington, DC 20224 Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Do not send the form to this office. See When and Where To File, earlier.
2018 Form 1120-POL
More about the Federal Form 1120-POL Corporate Income Tax Tax Return TY 2018
We last updated the U.S. Income Tax Return for Certain Political Organizations in December 2018, so this is the latest version of Form 1120-POL, fully updated for tax year 2018. You can download or print current or past-year PDFs of Form 1120-POL directly from TaxFormFinder. You can print other Federal tax forms here.
Other Federal Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 941||Employer's Quarterly Federal Tax Return|
|Form 1120-H||U.S. Income Tax Return for Homeowners Associations|
|Form 9465||Installment Agreement Request|
|Form 4562||Depreciation and Amortization (Including Information on Listed Property)|
|990 (Schedule O)||Supplemental Information to Form 990 or 990-EZ|
The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 1120-POL from the Internal Revenue Service in December 2018.
Form 1120-POL is a Federal Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Federal Form 1120-POL
We have a total of eight past-year versions of Form 1120-POL in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2018 Form 1120-POL
2017 Form 1120-POL
2016 Form 1120-POL
2015 Form 1120-POL
2014 Form 1120-POL
2013 Form 1120-POL
While we do our best to keep our list of Federal Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.