A private foundation must file Form 1120-POL if the foundation is subjected to a political organization taxable income. The foundation's income that is produced due to political activities or any expenditures made on political activities is subjected to tax. This amount must be reported on Form 1120-POL and the foundation must also pay taxes on this amount. The tax on political expenditures imposed on the foundation must be reported in the Form 990-PF.
If a foundation involves itself in any political activities like influencing political campaigns and elections or spends more than $100 for a political purpose, a detailed description of these activities must be attached with the Form 990-PF.
B is a private foundation and has campaigned for the Republicans in the Federal election in 2019. B had spent an amount of $1000 to organize and arrange a campaign. So, while filing Form 990-PF for the tax year 2019, B has to report this expense in the return and a detailed description of the campaign must be provided while submitting the return.
Since B has involved in political activity during the tax year, the foundation is subjected to a tax on the expenses due to the campaign. B has to file Form 1120-POL for the tax year and also has to pay the taxes imposed on the foundation.
Here's how you report your tax on political expenditures in Form 990-PF using ExpressTaxExempt: