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Media Relations Office For Release: November 2002
Washington, D.C.
Tel. 202.622.4000 Release No: FS-2002-13
SECTION 527 POLITICAL ORGANIZATIONS REVISED TAX FILING REQUIREMENTS
Legislation adopted in 2002 altered filing requirements for certain political organizations that seek tax-exempt status under section 527 of the Internal Revenue Code. The new law generally reduces filing requirements for certain state/local political organizations that already disclose certain information to state agencies. In addition, the law relieves some political organizations from filing an annual income tax return or an annual information return. Except where noted, the revised filing requirements are retroactive to July 1, 2000. This fact sheet discusses the current filing requirements as revised by the new legislation. FS-2002-11, published May 2002, is superseded. The new law: • Exempts state and local candidate and party committees from filing Form 8871 and Form 990 (or 990-EZ); • Exempts qualified state and local political organizations (QSLPOs) (as defined below) from filing Form 8872; • Exempts political committees filing with the FEC from filing Form 990 (or 990-EZ); • Exempts political organizations that are a caucus or association of state or local officials from filing Form 990 (or 990-EZ); • Requires additional information on Form 8871 and Form 8872; • Requires the filing of an amended Form 8871 after material changes to maintain tax-exempt status; • Increases reporting thresholds for certain Form 990 filers; • Eliminates the requirement to file Form 1120-POL except where an organization has taxable income after taking the $100 specific deduction (returning to pre-July 2000 requirements); • Reinstates the pre-July 2000 confidentiality requirement for any Form 1120-POL filed after November 2, 2002; and • Changes the electronic filing requirements by o Requiring that Form 8871 be filed electronically (as opposed to both in writing and electronically); and o Requiring that any Form 8872 due after June 30, 2003, be filed electronically if the filing organization has or expects to have contributions or expenditures of more than $50,000 during the calendar year.
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