Political organizations and the new disclosure requirements.

• Jurisdiction: United States
• Date: 01 October 2000
• Author: Moore, Philip E.

CPAs are often involved with political campaigns and usually serve in a treasury or fiduciary capacity with political committees or candidates. As

such, they should be aware that, on July 1, 2000, the President signed P.L. 106-230, which amended Sec. 527.

New Sec. 527(i) requires that a political organization provide both electronic and written notice to the IRS, within 24 hours after the date on which the organization is established, that it is to be treated as a political organization. Under Sec. 527(i), the notice must include (1) the name and address of the organization, its business address (if different) and its electronic mailing address; (2) the purpose of the organization; (3) the names and addresses of its officers, highly compensated employees, contact person, custodian of its records and a listing of its board of directors; (4) the name and address of, and relationship to, any related entities (within the meaning of Sec. 168(h)(4)); and (5) any other information required by the Service. The IRS released Form 8871, Political Organization Notice of Section 527 Status, for this purpose. This form is to be filed with the IRS Service Center in Ogden, Utah or over the IRS Website at www.irs.gov/bus_info/eo/pol-file.html.

An organization will not be treated as a...