2003 HTML Instructions for Form 8871,

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Table of Contents

Changes To Note

Political organizations are now required to:

File Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status, after the filing of their initial Form 8871. See Where and How To File below.
Use the username and password issued upon filing the initial Form 8871 and Form 8453-X to file an amended or final Form 8871 or to electronically file Form 8872, Political Organization Report of Contributions and Expenditures. See Where and How To File below.
Provide any identification numbers assigned to them by any election authority. See Lines 9a and 9b—Election Authority Identification Number on page 2.

Purpose of Form

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.

Definitions

Political organization

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

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).

Who Must File

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,
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).

When To File

Initial Filing

Form 8871 must be 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.

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.

Where and How To File

Section 527(i)(1)(A) requires that the organization file Form 8871 electronically. The paper version of Form 8871 is obsolete. File Form 8871 via the IRS Internet Web Site at: www.irs.gov/polorgs (IRS Keyword: political orgs).

Form 8453-X is generated when the initial Form 8871 is electronically filed. Print the Form 8453-X, sign it, and mail it to the Internal Revenue Service Center, Ogden, UT 84201.

While not required to establish timely filing, section 7502(b) provides that sending a document by U.S. registered mail provides prima facie evidence of the mailing date and that it was delivered.

Upon receipt of the Form 8453-X, the Internal Revenue Service will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872.

Who Must Sign

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 timely to file 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 web site 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.

Telephone Assistance

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 8:00 a.m. to 6:30 p.m. Eastern time.

General Instructions