What is a section 527 political organization?

What is a section 527 political organization?

A 527 organization or 527 group is a type of U.S. tax-exempt organization organized under Section 527 of the U.S. Internal Revenue Code (26 U.S.C. § 527). A 527 group is created primarily to influence the selection, nomination, election, appointment or defeat of candidates to federal, state or local public office.

Is the IRS connected to the government?

The Internal Revenue Service (IRS) is the revenue service of the United States federal government, which is responsible for collecting taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law.

Do political campaigns have to file tax returns?

Political parties; campaign committees for candidates for federal, state or local office; and political action committees are all political organizations subject to tax under IRC section 527. Section 527 organizations are generally required to file one or more of the following: Annual income tax returns and.

Do political organizations pay taxes?

A political organization is subject to tax on its political organization taxable income. Thus, investment income, or income from a trade or business (such as renting excess office space to an unrelated organization), of a political organization is not exempt function income and is subject to tax.

Can political organizations be tax exempt?

A political organization must be organized and operated for the primary purpose of carrying on exempt function activities. To be exempt, a political organization must file a timely notice with the IRS that it is to be treated as a tax-exempt organization.

Is the IRS different than state taxes?

The differences between state and federal taxes are federal income taxes are collected by the federal government to pay their bills and state taxes are collected by individual state governments to pay their specific state bills.

How to contact the IRS about political organizations?

You may direct your questions concerning political organizations to IRS TE/GE Customer Account Services at (877) 829-5500 (toll-free number).

How to contact the Internal Revenue Service ( IRS )?

Or you may write us at: For help with computer-related problems on the Political Organization Filing and Disclosure website, please contact the IRS.gov help desk at (800) 876-1715 (toll-free number). Questions about employment taxes should be addressed to the Business and Specialty Tax Line at (800) 829-4933 (toll-free).

Where can I find political organization disclosure forms?

Search Political Organization Disclosures: Search for Forms 8871, 8872 and 990 filed with the IRS. Download Political Organization Disclosures: Download Forms 8871, 8872 and 990 filed with the IRS.

What kind of tax return do political parties have to file?

Political parties; campaign committees for candidates for federal, state or local office; and political action committees are all political organizations under IRC § 527. Among other requirements, most tax-exempt political organizations have a requirement to file periodic reports on Form 8872 with the IRS.