What does a political organization that is not exempt because it did not file Form 8871 report on Form 1120-POL?
In addition to reporting its investment income as discussed in Exempt function income reporting not required, the political organization reports its exempt function income (contributions, etc.) as other income on line 7 of Form 1120-POL. It may deduct the expenses directly related to earning that income (such as fundraising expenses), but may not deduct its political campaign expenses.