Instructions for Form 8871 |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Political organizations must use Form 8871 to notify the IRS that the organization is to be treated as a
tax-exempt section 527 organization. The IRS is required to make publicly available on the Internet and at its offices a list
of the organizations
that file Form 8871 (including the organization's mailing address, email address, custodian of records, and contact person
as shown on Form 8871).
Political organizations must also use Form 8871 to notify the IRS of any material change in the information reported on a
previously filed Form
8871.
Political organization means a party, committee, association, fund, or other organization (whether or not
incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making
expenditures, or both, for
an exempt function.
Exempt function means the function 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 in a political organization, or the
election of the
Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or
appointed. It also
includes expenditures made relating to one of these offices, which if incurred by the individual, would be allowable as a
business deduction under
section 162(a).
Every political organization that is to be treated as a tax-exempt political organization under the rules of
section 527 must file Form 8871, except for:
-
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,
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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).
Form 8871 must be electronically filed within 24 hours of the date on which the organization was established. If the
due date falls on a Saturday, Sunday, or legal holiday, the organization may file on the next business day. See Pub. 4216,
Political Organization
Filing and Disclosure, Filing Process Guide, for more information.
To Report a Material Change
In general, an organization must file an amended Form 8871 within 30 days after the occurrence of the material change being
reported. An
organization must file a final Form 8871 within 30 days of termination. If the due date falls on a Saturday, Sunday, or legal
holiday, the
organization may file on the next business day. See Pub. 4216, Political Organization Filing and Disclosure, Filing Process
Guide, for more
information.
Section 527(i)(1)(A) requires that the organization file Form 8871 electronically. The paper version of
Form 8871 is obsolete. File Form 8871 using the IRS Internet website at:
www.irs.gov/polorgs (IRS Keyword: political orgs).
A first-time user electronically submitting an initial Form 8871 will be instructed to print, sign, and mail a Form 8453-X,
Political Organization
Declaration for Electronic Filing of Notice of Section 527 Status, to the IRS. An authorized official must sign and date Form
8453-X. Send the
completed Form 8453-X to:
Internal Revenue Service Center
Ogden, UT 84201
Upon receipt of Form 8453-X, the IRS will mail to the organization a username and password that must be used to file an amended
or final Form 8871
or to electronically file Form 8872, Political Organization Report of Contributions and Expenditures.
Form 8871 must be signed by an official authorized by the organization to sign this notice.
Effect of Failure To File Form 8871
An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as
a tax-exempt section 527 organization for any period before the date Form 8871 is filed. In addition, the taxable income of
the organization for that
period (or, for a material change, where there is a failure to file timely an amended Form 8871, for the period beginning
on the date the change
occurred and ending on the date on which Form 8871 is filed) will be computed by including its exempt function income (minus
any deductions directly
connected with the production of that income).
Other Required Reports and Returns
An organization that files Form 8871 may also be required to file the following forms:
-
Form 8872, Political Organization Report of Contributions and Expenditures (periodic reports are required during the calendar
year).
-
Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income
Tax (or other
designated annual information return).
-
Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations (annual income tax return).
Public Inspection of Form 8871 and Related Materials
Form 8871 (including any supporting papers), and any letter or other document the IRS issues with regard to
Form 8871, are open to public inspection at the IRS in Washington, DC, and on the IRS Internet website at
www.irs.gov/polorgs (IRS Keyword: political orgs). In addition, the organization must make available for
public inspection a copy of these materials during regular business hours at the organization's principal office and at each
of its regional or
district offices having at least three paid employees. A penalty of $20 per day will be imposed on any person under a duty
to comply with the public
inspection requirement for each day a failure to comply continues.
If you have questions or need help completing Form 8871, please call 1-877-829-5500. This toll-free telephone service is available
Monday through
Friday from 8:30 a.m. to 4:30 p.m. Eastern time.
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