July 17, 2000
IRS Unveils form 8872 for Section 527 Political Groups;
New form Requires Listing of Contributions, Expenditures
WASHINGTON - The Internal Revenue Service on Monday announced the release
of the new form that section 527 political organizations must use to provide details about
contributions and expenditures. The agency also extended the filing deadline until July
31 for groups required to file this month.
Form 8872, titled Political Organization Report of Contributions and Expenditures,
will require groups to list contributors of $200 or more annually and expenditures of $500
or more annually.
This marks the second new IRS form released in the last week covering section
527 organizations. This follows a new law approved last month by Congress and signed
July 1 by President Clinton that creates a new set of rules for political organizations
established under section 527 of the Internal Revenue Code. Under the new law, these
527 groups will be required to publicly disclose details about their organization,
contributors, expenditures, annual returns and other information.
"The IRS continues moving forward with this important project as quickly as
possible," IRS Commissioner Charles O. Rossotti said. "Putting these new rules in place
is a top priority."
Form 8872 and related instructions are now available at the IRS web site,
www.irs.gov, under the "Forms and Pubs" section. Look under "What’s Hot in Tax Forms."
Form 8872 can be downloaded at ftp.irs.gov/pub/irs-fill/f8872.pdf. The 8872
instructions are available at ftp.irs.gov/pub/irs-pdf/i8872.pdf.
The new form requires 527 organizations to list the name, address, employer and
occupation of contributors who give $200 or more annually to the organization. Similar
information will be listed for groups or individuals receiving $500 or more annually from
527 organizations. The disclosure covers contributions received and expenditures made
after July 1, 2000.
The due dates for filing Form 8872 vary depending on whether it is an election or
non-election year. In non-election years, the forms must be filed semi-annually or
monthly. In election years, the forms must be filed quarterly or monthly and in
connection to election dates. A complete listing of these filing periods can be found in
the Form 8872 instructions.
Some organizations potentially face July filing deadlines for pre-election reports.
However, the IRS realizes many 527 organizations may not yet be aware of this
deadline, so the agency has decided to extend the deadline for any July filings of Form
8872 until July 31, 2000.
The IRS made the decision to give groups additional time to learn about the new
This follows a similar IRS decision to set July 31, 2000, as the deadline for these
organizations to file Form 8871, "Political Organization Notice of Section 527 Status."
This notice of organization, released last week, is also available at the IRS web site in
the "Forms and Pubs" section.
Generally, section 527 organizations must file Form 8872 if they accept
contributions or make expenditures during a calendar year. However, organizations do
not file Form 8872 if:
- The organization is not required to file Form 8871, or
- They are the state or local committee of a political party or the political
committee of a state or local candidate.
However, the IRS wants to alert many other state and local political organizations
that they may need to file Forms 8871 and 8872. The new law generally covers 527
organizations active in state and local political campaigns as well as 527 organizations
active in federal elections.
The IRS will assess penalties if an organization fails to file Form 8872 by the due
date. Penalties will also be assessed if the organization fails to report all of the
information required on the form or reports incorrect information. The penalty is 35
percent of the total amount of contributions and expenditures not properly reported.
Organizations must make copies of filed Forms 8872 and 8871 available for public
inspection. In addition, the IRS is working on procedures to make these available for
We are doing everything we can to make information from these groups publicly
available as soon as possible," Rossotti said.
The IRS also is in the process of determining which forms will be used as annual
returns by 527 organizations with gross receipts of $25,000 or more. These returns
also will be available for public review.
If 527 organizations have questions or need help, they can contact 1-877-829-5500.
Media inquiries should be directed to the IRS Media Relations office at (202) 622-4000.
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