Form 8871, Political Organization Notice of Section 527 Status

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Instructions for Form 8871

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Instructions for Form 8871

Department of the Treasury
Internal Revenue Service

(Rev. July 2003)
Political Organization Notice of Section 527 Status
Section references are to the Internal Revenue Code unless otherwise noted.

• A political committee required to report under the

General Instructions
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,

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

Cat. No. 35287H

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Instructions for Form 8871

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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).

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.

Lines 6a and 6b—Custodian of Records

Other Required Reports and Returns

Enter the name and address of the person in possession
of the organization’s books and records.

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).

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.

Lines 9a and 9b—Election Authority
Identification Number
If the organization has not been assigned any
identification number by any election authority, enter
“None.” 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.

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.

Part II—Exemptions
Lines 10a and 10b—Qualified State or Local
Political Organization
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 and enter the state where the
organization files its reports. If not, check the “No” box.
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
requirement only if it reports that additional information to
the state agency;
• The state agency makes the reports filed by the
organization publicly available;

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.

Specific Instructions
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 obtained by downloading it from the
IRS Internet Web Site at www.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 fax or telephone.
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 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
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Instructions for Form 8871

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• The organization makes the reports filed with the state

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.

agency publicly 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; and
• 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.

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

Part V—Officers, Directors, and
Highly Compensated Employees
Lines 15a through 15c—Name, Title, and
Address
Enter the name, title, and address of all of the
organization’s officers, members of the board of directors
(i.e., 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, use the “Add Officer” button until all
names are entered, then use the “Proceed to Next Step”
button.

Line 11—Caucus or Association
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—Related Entities
Line 13—No Related Entities
If there are no related entities, check the “There are no
related entities” box and use the “Proceed to Next Step”
button.

Filing
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. Print the Form 8453-X, sign it, and mail it as
directed in Where and How to File.

If there is more than one related entity, use the “Add
Entity” button until all related entities are entered, then
use the “Proceed to Next Step” button.

Lines 14a through 14c—Name,
Relationship, and Address of Related Entity
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
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

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

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

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.

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 Tax Products Coordinating Committee, Western Area
Distribution Center, Rancho Cordova, CA 95743-0001. Do not send Form 8871 to this address. Instead, see Where
and How To File on page 1.

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