[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: 26CFR1.527-9]

[Page 234-235]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.527-9  Special rule for principal campaign committees.

    (a) In general. Effective with respect to taxable years beginning 
after December 31, 1981, the tax imposed by section 527(b) on the 
political organization taxable income of a principal campaign committee 
shall be computed by multiplying the political organization taxable 
income by the appropriate rates of tax specified in section 11(b). The 
political organization taxable income of a campaign committee not a 
principal campaign committee is taxed at the highest rate of tax 
specified in section 11(b). A candidate for Congress may designate one 
political committee to serve as his or her principal campaign committee 
for purposes of section 527(h)(1). If a designation is made, it shall be 
made in accordance with the requirements of paragraph (b) of this 
section. A candidate for Congress may have only one designation in 
effect at any time. Under 11 CFR 102.12, no political committee may be 
designated as the principal campaign committee of more than one 
candidate for Congress. Further, no political committee that supports or 
has supported more than one candidate for Congress may be designated as 
a principal campaign committee. No designation need be made where there 
is only one political campaign committee with respect to a candidate.
    (b) Manner of designation. If a candidate for Congress elects to 
make a designation under section 527(h) and this section, he or she 
shall designate his or her principal campaign committee by appending a 
copy of his or her Statement of Candidacy (that is, the Federal Election 
Commission Form 2, or equivalent statement that the candidate filed with 
the Federal Election Commission under 11 CFR 101.1(a)), to the Form 
1120-POL filed by the principal campaign committee for each taxable year 
for which the designation is effective. This designation may also be 
made by appending to the Form 1120-POL statement containing

[[Page 235]]

the following information: The name and address of the candidate for 
Congress; his or her taxpayer identification number; his or her party 
affiliation and the office sought; the district and State in which the 
office is sought; and the name and address of the principal campaign 
comittee. This designation shall be made on or before the due date (as 
extended) for filing Form 1120-POL. Only a candidate for Congress may 
make a designation in accordance with this paragraph.
    (c) Manner of revoking designation. A designation of a principal 
campaign committee that has been filed in accordance with this section 
may be revoked only with the consent of the Commissioner. In general, 
the Commissioner will grant such consent in every case where the 
candidate for Congress has revoked his or her designation in compliance 
with the requirements of the Federal Election Commission by filing an 
amended Statement of Organization or its equivalent pursuant to 11 CFR 
102.2(a)(2). In the case of the revocation of the designation of a 
principal campaign committee by a candidate followed by the designation 
of another principal campaign committee by such candidate, for purposes 
of determining the appropriate rate of tax under section 11(b) for a 
taxable year, the political organization taxable income of the first 
principal campaign committee shall be treated as that of the subsequent 
principal campaign committee. In a case where consent to revoke a 
designation of a principal campaign committee is granted and a new 
designation is filed, the Commissioner may condition his consent upon 
the agreement of the candidate for Congress to insure compliance with 
the preceding sentence.

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

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