Instructions for Form 8871

Instructions for Form 8871

Department of the Treasury

Internal Revenue Service

(Rev. February 2011)

Political Organization Notice of Section 527 Status

Section references are to the Internal Revenue Code unless

otherwise noted.

General Instructions

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 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 User Guide, for more information.

Note. An organization that has not filed an initial Form

8871 because it reasonably expected its annual gross

receipts to always be less than $25,000 must file an initial

Form 8871 within 30 days of reaching $25,000 in annual

gross receipts.

To Report a Material Change or Termination

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 User Guide, for more information.

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 online 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:

Department of the Treasury

Internal Revenue Service

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.

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,

where there is a material change and a failure to timely

file an amended Form 8871, for the period beginning on

the date the change occurred and ending on the date on

which the amended Form 8871 is filed) is subject to tax

and must be reported on Form 1120-POL. The tax will be

computed by including its exempt function income (minus

any deductions directly connected with the production of

that income).

Cat. No. 35287H

Other Required Reports and Returns

qualified for the exception. For an amended notice, enter

the date of the material change being reported. For a

final notice, enter the date the organization terminated.

An organization that files Form 8871 also may 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).

Lines 6a and 6b. Custodian of Records

Enter the name and address of the person in possession

of the organization’s books and records.

Lines 7a and 7b. Contact Person

Enter the name and address of the person whom the

public may contact for more information about the

organization.

Public Inspection of Form 8871 and

Related Materials

Lines 9a and 9b. Election Authority

Identification Number

Enter the name of the election authority on line 9a. If the

organization has not been assigned any identification

number by any election authority, enter “None” on line

9b. Otherwise, provide each identification number

assigned and identify the state in which the election

authority is located. For a federal identification number,

enter ‘‘Federal’’ for the state.

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 online 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.

Part II. Notification of Claim of

Exemption From Filing Certain Forms

Lines 10a and 10b. Qualified State or Local

Political Organization

Telephone Assistance

Qualified state or local political organizations (defined

below) are exempt from filing Form 8872. If you are

claiming this exemption for the organization, you must

check the ‘‘Yes’’ box on line 10a and enter the state

where the organization files its reports on line 10b. If not,

check the “No” box.

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.

Specific Instructions

A qualified state or local political organization is a

political organization that meets the following

requirements.

• The organization limits its exempt function to the

purpose of influencing or attempting to influence the

selection, nomination, election, or appointment of any

individual to any state or local public office or office in a

state or local political organization.

• The organization is required under a state law to report

to a state agency (and the organization does so) the

information that otherwise would be required to be

reported on Form 8872. The organization will meet this

requirement even if the state law does not require

reporting of the identical information required on the

Form 8872, so long as at least the following information

is required to be reported under the state law and is

reported by the organization:

1. The name and address of every person who

contributes $500 or more in the aggregate to the

organization during the calendar year and the amount of

each contribution, and

2. The name and address of every person to whom

the organization makes expenditures aggregating $800

or more during the calendar year, and the amount of

each expenditure.

However, if the state law requires the reporting of (if an

individual) the occupation or employer of any person to

whom such expenditures are made, or the date or

purpose of each such expenditure; or, if the state law

requires the reporting of (if an individual) the occupation

or employer of any such contributor or the date of each

such contribution, the organization will meet this

Part I. General Information

Employer Identification Number (EIN)

Enter the EIN in the space provided. If the organization

does not have an EIN, it must apply for one on Form

SS-4, Application for Employer Identification Number.

Form SS-4 can be downloaded at IRS.gov or by calling

1-800-TAX-FORM (1-800-829-3676). See the Form SS-4

instructions for information about where and how to file,

including by telephone, fax, mail, or online.

When electronically filing an amended or final Form

8871, the organization’s EIN will be entered by the

computer program and may not be changed.

Line 3. Applicable Notice

• Check Initial notice if this is the first Form 8871 filed by

the organization.

• Check Amended notice if the organization is filing an

amended notice.

• Check Final notice when the organization ceases

operations and dissolves as a tax-exempt Section 527

organization or is no longer required to file Form 8871.

Line 4b. Date of Material Change

For an initial notice, the date of material change is not

required unless the organization is filing its initial notice

because it no longer qualifies for an exception to the filing

requirements, such as reasonably anticipating it will

always have annual gross receipts of less than $25,000.

In that case, enter the date the organization no longer

-2-

requirement only if it reports that additional information to

the state agency.

• The state agency makes the reports filed by the

organization publicly available.

• The organization makes the reports filed with the state

agency available for public inspection 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). Contributor information must be

disclosed to the public.

• No federal candidate or officeholder controls or

materially participates in the direction of the organization,

solicits contributions to the organization, or directs any of

the organization’s disbursements.

For additional information, see section 527(e)(5) and

Revenue Ruling 2003-49, 2003-20 I.R.B. 903.

or (b) substantial common direction or control (either

directly or indirectly).

2. Either the organization or that entity owns (directly

or through one or more entities) at least a 50% capital or

profits interest in the other. For this purpose, all entities

that are defined as related entities under 1 above must

be treated as a single entity.

If 1 applies, enter ‘‘connected’’ under relationship. If 2

applies, enter ‘‘affiliated’’ under relationship.

Part V. List of All Officers, Directors,

and Highly Compensated Employees

Lines 15a through 15c. Name, Title, and

Address

Line 11. Caucus or Association

If there are no related entities, check this box and

proceed to the next step.

Enter the name, title, and address of all of the

organization’s officers, members of the board of directors

(that is, governing body, regardless of name), and highly

compensated employees. Highly compensated

employees are the five employees (other than officers

and directors) who are expected to have the highest

annual compensation over $50,000. Compensation

includes both cash and noncash amounts, whether paid

currently or deferred.

If there is more than one individual required to be

listed in Part V, add each officer name until all names are

entered and proceed to the next step.

Lines 14a through 14c. Name, Relationship,

and Address of Related Entity

Filing

A political organization that is a caucus or association of

state or local officials is exempt from filing Form 990. If

you are claiming this exemption for the organization, you

must check the “Yes” box on line 11. If not, check the

“No” box.

Part IV. List of All Related Entities

Line 13.

You will not be able to reach this step until you have

provided all required information. Before moving on to

this step, please review all information entered to ensure

that it is true, correct, and complete. Once you have

attested to this by entering your name and using the

‘‘Submit Form 8871’’ button, the information entered will

be made available to the public. Form 8453-X is

generated when the initial Form 8871 is electronically

filed. See Where and How to File on page 1.

If there is more than one related entity, add each related

entity until all related entities are entered and proceed to

the next step.

List the name, relationship, and address of all related

entities. An entity is a related entity if either 1 or 2 below

applies:

1. The organization and that entity have (a) significant

common purposes and substantial common membership

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of

the United States. If the organization is to be treated as a tax-exempt section 527 organization, you are required to give

us the information. We need it to ensure that you are complying with these laws.

You are not 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. The rules

governing the confidentiality of Form 8871 are covered in section 6104.

The time needed to complete and file these forms will vary depending on individual circumstances. The estimated

average times are:

Forms

8871

8453-X

5 hr., 15 min.

28 min.

Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47 min.

6 min.

Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55 min.

6 min.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 write to the Internal Revenue Service, Tax Products Coordinating

Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Form

8871 to this address. Instead, see Where and How To File on page 1.

-3-