A political organization is a topic that comes up quite often, specifically during the presidential election cycle every four years. The idea of a political organization is that it could be a party, a committee, association, fund or another type of organization. None of these will be considered to be incorporated by the Internal Revenue Service. Political Organizations are typically Non-Profit Organizations, as they do not have to pay taxes like a regular business entity.
The goal of the political organization is to have the primary purpose of directly or indirectly accepting any type of contribution on behalf of a political individual or individuals. These funds will then be spent on what is considered to be an exempt function. Exempt functions include the attempt to influence who and how folks are nominated and ultimately elected into office. This could be at the federal, state, or local public office levels.
A political organization can obtain the appropriate Tax ID Number by applying online using the online Non-Profit Tax ID Application and selecting “Political Organization” from the drop down menu.