[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.527-1]

[Page 225]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.527-1  Political organizations; generally.

    Section 527 provides that a political organization is considered an 
organization exempt from income taxes for the purpose of any law which 
refers to organizations exempt from income taxes. A political 
organization is subject to tax only to the extent provided in section 
527. In general, a political organization is an organization that is 
organized and operated primarily for an exempt function as defined in 
Sec. 1.527-2(c). Section 527 provides that a political organization is 
taxed on its political organization taxable income (see Sec. 1.527-4) 
which, in general, does not include the exempt function income (see 
Sec. 1.527-3) of the political organization. Furthermore, section 527 
provides that an exempt organization, other than a political 
organization, may be subject to tax under section 527 when it expends an 
amount for an exempt function, see Sec. 1.527-6. The taxation of 
newsletter funds is provided under section 527(g) and Sec. 1.527-7. A 
special rule for principal campaign committees is provided under section 
527(h) and Sec. 1.527-9.

[T.D. 8041, 50 FR 30817, July 30, 1985]