Page 8 - TFRW PNL Feb 2018

Inspire. Unite. Achieve.
Tax Exempt Status

by Treasurer Cindy Barberio Payne
[email protected]

What in the World is...

IRS Form 8871- Political Organization Notice of Section 527 Status?

Form 8871 is the Initial Notice that TFRW clubs must file electronically with the Internal Revenue Service (the
“Service”) to report their status as Section 527 Tax-Exempt Political Organizations. Tax exempt used in this
context indicates that our TFRW clubs are not subject to Federal Income Tax. There are several exceptions
to the requirement for filing the Form 8871. The information listed below is taken directly from the Internal
Revenue Service Website (www.irs.gov).

Most TFRW clubs fall under the small political organization exception (< $25,000 gross receipts). However, if
you are a TFRW club with $25,000 or more in gross receipts, please file Form 8871 in order to maintain your tax
exempt status.

To be exempt, a political organization must give notice electronically to the Service that it is a political organ-
ization described in Internal Revenue Code section 527, unless an exception applies. An organization must
file an amended notice within 30 days after the occurrence of a material change in the information reported,
and a final notice upon termination of the organization. All electronic notices are filed at the IRS Political
Organizations Filing and Disclosure site.

The following political organizations are not required to file Form 8871:

• Any organization required to report to the Federal Election Commission as a political committee,

• Committees of state or local candidates,

• State or local committees of a political party, and

• Any organization reasonably anticipating that it will always have less than $25,000 for any taxable year.
• Small political organizations:

An organization is not required to file Form 8871, if it reasonably anticipates that it will not have gross receipts
of $25,000 or more for any taxable year. If an organization, in fact, has annual gross receipts of $25,000 or more
for any taxable year, it must file Form 8871 within thirty days of receiving $25,000 in a single taxable year to
continue to be tax exempt.

PRESIDENT’S NEWSLETTER FEBRUARY 2018 8 TEXAS FEDERATION OF REPUBLICAN WOMEN