Most exempt organizations, including private foundations, political organizations, and IRC § 4947 trusts must file various returns and reports. Under certain circumstances, persons related to these organizations are also required to file returns and reports. The purpose of this chapter is to state:

This section discusses the returns and reports required to be filed by Exempt Organizations. This includes, among others, Forms 990/990-EZ, 990-PF, and 990-BL.

IRC § 6033(c) requires an annual return on Form 990-PF, Return of Private Foundation, by all organizations (including foreign organizations) which have private foundation status under IRC § 509(a). This would also include private operating foundations, organizations that made an election under IRC § 41(e)(6), and organizations making an IRC § 507 termination.

For organizations that are trusts, Rev. Proc. 83-32, 1983-1 C.B. 723, explains the return filing requirements, including those for:

IRC § 6033(d)(1) requires that nonexempt charitable trusts described in IRC § 4947(a)(1) which are treated as private foundations must also file Form 990-PF.

Nonexempt charitable trusts which are treated as private foundations may file Form 990-PF, instead of Form 1041, to satisfy the requirements of IRC § 6012 provided they have no taxable income. However, if the nonexempt charitable trusts have taxable income under Subtitle A of the IRC, both Form 1041 and Form 990-PF are required to be filed.

IRC § 6033(d)(2) requires an annual return on Form 990-PF by private foundations not exempt from tax under IRC § 501(a).

Treas. Reg. § 1.6033-2(a)(4) provides for purposes of IRC § 6033(d) the term nonexempt private foundation means a taxable organization (other than an IRC § 4947(a)(1) trust) that is a private foundation.

Form 990-PF is due on or before the 15th day of the fifth month following the close of the organization's annual accounting period, as provided in Treas. Reg. § 1.6033-2(e). Refer to IRM 4.75.30.2.1 (above), for a discussion on filing extensions

Beginning with Form 990-PF returns filed in 2001, instead of attaching a list of certain contributors to Form 990-PF, the foundation must now complete Schedule B, "Schedule of Contributors" and attach it to Form 990-PF.

Penalty provisions for failure to file required returns are covered in the penalty handbook (IRM 20.1).

There are a number of annual returns required to be filed by split-interest trusts described in IRC § 4947(a)(2). For years ending on or after December 31, 1975, Form 5227 is required to be filed by split-interest trusts which are treated as if they were private foundations for purposes of any of the foundation excise tax provisions. See Treas. Reg § 53.6011-1(d).

Those split-interest trusts that are charitable remainder trusts described in IRC § 664 are also required to file Form 1041 as a supplemental schedule to Form 5227, but only for those years for which such trust had unrelated business taxable income.

Other types of split-interest trusts file Form 1041 as their annual income tax return for any year in which they have at least $600 of gross income or have any taxable income. See Treas. Regs. 1.6012-3(a).

The information return, Form 1041-A, is required by IRC 6034 to be filed by split-interest trusts described in IRC 4947(a)(2) except for those years for which the split-interest trust is required to distribute all of its income pursuant to its governing instrument.

Public charities that made the election under IRC §501(h) and owe tax on excess lobbying expenditures must file Form 4720 to report the liability and pay the tax.

All IRC § 501(c)(3) organizations that made a political expenditure must file Form 4720 to report the liability and pay the tax.

All charitable organizations described in IRC § 170(c) or § 664(d) that make certain premium payments on personal benefit contracts must file Form 4720.

Disqualified persons and organization managers must file Form 4720 to pay taxes on excess benefit transactions imposed on them.

In the case of a tax imposed by IRC § 4945(a), the annual return shall be filed for the year in which an act giving rise to liability occurred. See Treas. Reg. § 53.6011-1(b). However, if Form 4720 is due for a particular year it should include all taxes imposed by IRC §§ 4941 through 4945 for such year.

Every person liable for tax imposed by IRC §§ 4941 through 4945, and every private foundation and trust described in IRC § 4947(a)(2), which has engaged in an act of self-dealing, as defined in IRC § 4941(d) giving rise to tax, shall file an annual return on Form 4720, Return of Certain Excise Taxes on Charities and Other Persons under Chapters 41 and 42 of the Internal Revenue Code.

In the case of any tax imposed by IRC §§ 4941 through 4944, Form 4720, shall be filed for each year, or part thereof, in the taxable period, as defined in IRC §§ 4941(e)(1), 4942(j)(1), 4943(d)(2), and 4944(e)(1).

Foundation managers and disqualified persons who are liable for excise tax under IRC Chapter 42 may, if they have the same taxable year as the foundation, use the foundation's Form 4720 as their own.

In order to use the foundation's Form 4720, the Foundation Manager must sign the foundation's Form 4720 and complete those parts of the form relating to their involvement in Chapter 42 violations and resultant liability for Chapter 42 taxes. Otherwise they must file a separate Form 4720. See Treas. Reg § 53.6011-1(c).

Form 4720 is due on or before the due date for the Form 990-PF or the Form 5227, Split-Interest Trust Information Return, whichever is applicable.

A separate Form 4720, filed by foundation managers or disqualified persons, is due on or before the due date of the related organization's Form 990-PF or Form 5227, when the filer's taxable year is the same as the organization's.

Otherwise, a separate Form 4720 is due on or before the 15th day of the 5th month following the close of the individual's or corporation's taxable year.

IRC § 6050L provides that if the donee of any charitable deduction property, as defined in IRC § 6050L(b), sells, exchanges, or otherwise disposes of such property within two years after its receipt, the donee must file an information return and furnish a copy of such return to the donor. The return is filed on Form 8282, "Donee Information Return" . Additionally, a signed appraisal summary, Form 8283, "Noncash Charitable Contributions" , must be filed if the donated property exceeds $5,000 in value. .

In the case of each failure to file an information return with the Secretary on the date prescribed therefor (determined with regard to any extension of time for filing), the person failing to so file such return shall pay $50 for each such failure, but the total amount imposed on such person for all such failures during any calendar year shall not exceed $100,000.See IRC § 6721

Form 990-T, Exempt Organization Business Income Tax Return, is required to be filed by any organization exempt from tax under IRC § 501(a) (except United States instrumentalities described in IRC 501(c)(1), and qualified tuition programs exempt under IRC § 529(a), having gross income from an unrelated business of $1,000 or more.

Organizations liable for the IRC § 6033(e)(2) proxy tax on lobbying and political expenditures are required to file Form 990-T.

The Tax Reform Act of 1969 extended application of the unrelated business income tax to virtually all exempt organizations including churches. However, churches or conventions or associations of churches, having business activities which were carried on before May 27, 1969, are subject to the tax on the income from those activities still carried on only for years beginning after December 31, 1975.

Form 990-T is due on or before the fifteenth day of the fifth month following the close of the taxable year. P.L. 95-628, 1978-2 C.B. 435. Refer to IRC § 6072(e).

Penalty provisions for failure to file required returns are covered in the penalty handbook (IRM 20.1).

The Tax Reform Act of 1976 permits certain IRC § 501(c)(3) organizations to elect application of a prescribed formula to determine whether their legislation-related expenditures will affect exempt status for years beginning after December 31, 1976. Form 5768, "Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to make Expenditures to Influence Legislation" , is used to make this election or to revoke a previous election.

Form 5768 must be signed and postmarked within the first taxable year to which it applies. When the form is used to revoke the election, it must be signed and postmarked before the first day of the taxable year to which it applies.

Organizations exempt under IRC § 501(c) must file Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, for any year in which its taxable income exceeds the $100 specific deduction:

The Form 1120-POL is due on or before the 15th day of the 3rd month following the end of the exempt organization's annual accounting period. An automatic extension of three months may be requested by filing Form 7004, Application for Automatic Extension of Time to File Corporation Income Tax Return.

Organizations exempt under IRC § 501(c) setting up separate segregated funds for political activities must file Form 1120-POL for the segregated funds as a separate organization. This does not apply to IRC § 501(c)(3) organizations which may not set up separate funds for political activities.

A tax-exempt organization that wishes to change its annual accounting period and has not changed its accounting period within the previous ten years may file an information return for the short period indicating a change in accounting period is being made. If the organization has changed its accounting period within the previous ten years, however, it is required to file Form 1128, Application To Adopt, Change, Or Retain A Tax Year., with the Campus where it files its annual information return. This procedure does not apply to IRC §§ 521, 526, 527 or 528 organizations. This application must be filed within fifteen days of the fifth month following the close of the short period. See Rev. Proc. 85-58, 1985-2, C.B. 740, superseding Rev. Proc. 79-2, 1979-1 C.B. 482, and Rev. Proc. 76-9, 1976-1 C.B. 547.

A central organization exempt from income tax may obtain approval for a group change in annual accounting period for its subordinate organizations exempt on a group basis by filing Form 1128 with the Service Center where the central organization files its annual information return. This application must be filed within fifteen days of the fifth month following the close of the short period. Rev. Proc. 79-3, 1979-1 C.B. 483, modifying Rev. Proc. 76-10, 1976-1 C.B. 548.

IRC § 6043(b) provides, in certain cases, an organization exempt from taxation under IRC § 501(a) must file information with respect to its liquidation, dissolution, termination, or substantial contraction.

The information required by IRC § 6043(b) must be submitted with the annual information return filed by the organization under IRC § 6033.

See Treas. Reg. § 1.6043-3 for special rules and exceptions.

Before the Tax Reform Act of 1986, exempt organizations subject to the unrelated trade or business income tax imposed by IRC § 511, and private foundations subject to the net investment income excise tax imposed by IRC § 4940, were required to pay estimated taxes annually with their returns.

For taxable years beginning after December 31, 1986, provided the unrelated business income or excise tax liability based on investment income is expected to be $500 or greater, these organizations are required to figure the estimated tax on Form 990-W. Each payment must be accompanied by Form 8109, Federal Tax Deposit Coupon. Due dates for estimated tax payments are on the 15th day of the fourth, sixth, ninth, and twelfth months of the taxable year.

All Form 990-PF and 990-T filers are subject to the estimated tax requirements. However, for taxable years beginning after December 31, 1987, no penalty will be assessed for failure to pay estimated tax if the organization's tax liability for the taxable year is less than $500.

IRC § 6655 sets forth the requirements and penalty provisions applicable to payment and nonpayment of estimated tax.

Organizations exempt under IRC §§ 501(c) or 501(d) are not relieved from filing Forms 1096 or 1099 and reporting payments of income specified by IRC § 6041(a). See Rev. Rul. 56-176, 1956-1 C.B. 560.

Failure or inability to file the required information return or to comply with the provisions of IRC § 6033 or the regulations thereunder, may result in the termination of the exempt status of an organization previously held exempt, on the grounds the organization has not established it is observing the conditions required for continuation of an exempt status. See Rev. Rul. 59-95, 1959-1 C.B. 627.

A group information return, Form 990, may be filed by a State agency for all exempt state-chartered credit unions under its control and supervision in lieu of separate returns by each credit union. See Rev. Rul. 60-364, 1960-2 C.B. 382.

A separately incorporated subsidiary of an organization exempt under IRC § 501(a) may not consider itself exempt merely because of its relationship to the exempt parent. Further, the inclusion of the financial information of the subsidiary on the information return of the parent does not satisfy the reporting requirements of the subsidiary. See Rev. Rul. 67-174, 1967-1 C.B. 119.

A student government association controlled by a university must file information returns for years beginning after 1969, unless excepted from filing under IRC §. 6033(a)(2). See Rev. Rul. 71-553, 1971-2 C.B. 404, superseding Rev. Rul. 56-133, 1956-1 C.B. 559.

A charitable organization supported primarily by contributions from a community chest must file information returns for years beginning after 1969, unless excepted from filing under IRC § 6033(a)(2). See Rev. Rul. 71-554, 1971-2 C.B. 405, superseding Rev. Rul. 67-271, 1967-2 C.B. 407.

If the exempt status of an educational organization excepted from filing annual information returns is revoked, the periods of limitation provided by IRC § 6501(a) will not bar assessment of any income tax for the years the organization has not, in fact, filed returns. See Rev. Rul. 71-55, 1971-1 C.B. 403.

In determining whether the gross receipts of a local lodge of a tax-exempt fraternal beneficiary society are sufficient to require it to file an information return, as provided in IRC § 6033, insurance premiums collected from its members, maintained separately without use or benefit, and remitted to its parent organization which issued the insurance contracts, are not gross receipts of the local lodge. See Rev. Rul. 73-364, 1973-2 C.B. 393.

Certain church-related organizations which are not integrated auxiliaries of churches and are covered by a group exemption ruling issued to a central or parent church organization and having filing dates in 1977 of May 15, June 15, and July 15, receive automatic extensions of the time these returns must be filed. See Announcement 77-74, 1977-18 C.B. 26.

An exempt organization, without reasonable cause, files an incomplete information return by omitting material information has failed to file a return for purposes of the penalty imposed by IRC § 6652(d)(1) and the period of limitations on assessment and collection of tax under IRC § 6501(c)(3). See Rev. Rul. 77-162, 1977-1 C.B. 400.

A church-affiliated college exempt from tax under IRC § 501(c)(3) training ministers and lay workers to serve religious functions in the church is an integrated auxiliary of a church within the meaning of Treas. Reg § 1.6033-2(g)(S)(i) and is not required to file an annual return on Form 990. See Rev. Rul. 77-381, 1977-2 C.B. 462.

Treas. Reg. § 1.6033-2(c) requires the filing of an information return by an organization claiming an IRC § 501(a) exempt status prior to the establishment of that status; therefore, Rev. Rul. 54-393, 1954-2 C.B. 125, is obsolete. See Rev. Rul. 79-30, 1979-1 C.B. 454.

The central organization of a group that wishes to change accounting periods for its subordinate organizations should file Form 1128 with the Service Center where it files its annual information return. See Rev. Proc. 76-10, 1976-1 C.B. 547 is modified. Rev. Proc. 79-3, 1979-1 C.B. 483.

Organizations may substitute certain forms for the detailed income statement and balance sheet portions of Form 990. See Rev. Proc. 79-6, 1979-1 C.B. 485.

Rev. Proc. 83-23, 1983-1 C.B. 667 contains a current list of those organizations exempt under IRC § 501(c) are not required to file an annual information return on Form 990

Rev. Proc. 83-23 has been supplemented by Rev. Proc. 86-23, 1986-1 C.B. 564, which establishes an additional class of organizations, affiliated with a church or convention of churches and exempt under IRC § 501(c)(3), is not required to file an annual information return on Form 990. Rev. Proc. 83-23 was further supplemented to add an additional class of organizations, affiliated with a governmental unit, which are not required to file Form 990. See Rev. Proc. 95-48,1995-2, C.B. 418.