Table of Contents
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Check the “Trust” box when the return is filed by a black lung benefit trust as an information return, or tax return, or both.
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Check the “Trustee” box when the return is filed by a trustee because of liability for taxes under section 4951 or 4952, or both.
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Check the “Disqualified person” box when the return is filed by a disqualified person who is liable for section 4951 tax only.
Complete the balance sheets on the basis of the accounting method regularly used by the trust in keeping its books and records.
The Black Lung Benefits Revenue Act of 1977 imposes excise taxes and penalties on acts of self-dealing between trusts and disqualified persons, and on taxable expenditures made by the trusts. These taxes and penalties apply to the trust (section 4952), trustees (sections 4951 and 4952), and self-dealers (section 4951). The purpose of the questions is to determine whether there is any initial tax due under either of these two sections.
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Sale, exchange, or leasing of real or personal property between a trust described in section 501(c)(21) and a disqualified person;
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Lending of money or other extension of credit between such a trust and a disqualified person;
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Furnishing of goods, services, or facilities between such a trust and a disqualified person;
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Payment of compensation (or payment or reimbursement of expenses) by such a trust to a disqualified person; and
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Transfers to, or use by or for the benefit of, a disqualified person of the income or assets of such a trust.
section 4951:
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The transfer of personal property by a disqualified person to such a trust is treated as a sale or exchange if the property is subject to a mortgage or similar lien;
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If a bank or an insured credit union is a trustee of the trust or otherwise is a “disqualified person” with respect to the trust, any amount invested in checking accounts, savings accounts, certificates of deposit, or other time or demand deposits in that bank or credit union constitutes a lending of money;
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The furnishing of goods, services, or facilities by a disqualified person to such a trust is not an act of self-dealing if the furnishing is without charge and if the goods, services, or facilities so furnished are used exclusively for the purposes specified in section 501(c)(21)(A); and
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The payment of compensation (and the payment or reimbursement of expenses) by such a trust to a disqualified person for personal services that are reasonable and necessary to carry out the exempt purpose of the trust is not an act of self-dealing if the compensation (or payment or reimbursement) is not excessive. See Regulations section 53.4951-1 for additional information.
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The date of mailing of a notice of deficiency under section 6212, with respect to the tax imposed by section 4951(a)(1),
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The date on which the tax imposed by section 4951(a)(1) is assessed, or
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The date on which correction of the act of self-dealing is completed.
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For the initial taxes imposed by section 4951(a), is determined as of the date on which the act of self-dealing occurs; and
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For additional taxes imposed by section 4951(b), is the highest FMV during the taxable period.
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A contributor to the trust,
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A trustee of the trust,
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An owner of more than 10% of:
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The total combined voting power of a corporation,
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The profits interest of a partnership, or
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The beneficial interest of a trust or unincorporated enterprise, which is a contributor to the trust,
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An officer, director, or employee of a person who is a contributor to the trust,
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The spouse, ancestor, lineal descendant, or spouse of a lineal descendant of an individual described in 1, 2, 3, or 4,
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A corporation of which persons described in 1, 2, 3, 4, or 5 own more than 35% of the total combined voting power,
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A partnership in which persons described in 1, 2, 3, 4, or 5 own more than 35% of the profits interest, or
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A trust or estate in which persons described in 1, 2, 3, 4, or 5 hold more than 35% of the beneficial interest.
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By recovering all or part of the expenditure to the extent recovery is possible; and
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When full recovery is not possible, by contributions by the person or persons whose liabilities for black lung benefit claims (as defined in section 192(e)) are to be paid out of the trust.
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The date of mailing a notice of deficiency under section 6212 with respect to the tax imposed by section 4952(a)(1), or
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The date on which the tax imposed by section 4952(a)(1) is assessed.
Schedule A (Form 990-BL) is not open for public inspection. If you attach any exhibits to Schedule A (Form 990-BL), be sure to label them and write “Not open for public inspection” on them.
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on these forms to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. Section 6109 requires you to provide your taxpayer identification number (EIN or SSN). | |||
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and tax return information are confidential, as required by section 6103. | |||
The time needed to complete and file this form and related schedules will vary depending on individual circumstances. The estimated average times are: | |||
Form | Recordkeeping | Learning about the law or the form | Preparing and sending the form to the IRS |
990-BL | 16 hrs., 30 min. | 3 hrs., 22 min. | 3 hrs., 48 min. |
Sch. A (Form 990-BL) | 6 hrs., 56 min. | 18 min. | 25 min. |
If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related schedule simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not send the tax form to this address. Instead, see Where to File on page 1. |
See Who Must File in the “General Instructions” and the “Specific Instructions” of Form 990-BL for completing the identification area of this schedule.
Disqualified persons and trustees who participate in acts of self-dealing with a section 501(c)(21) trust and who have tax years different from the trust should use their own tax years to figure the initial tax and file the return.
Generally, no more than three lines in Part II will be completed on any return. However, when a trustee is liable for section 4951 initial taxes both as a trustee and as a self-dealer and is also liable for section 4952 initial taxes because of taxable expenditure involvement, enter the section 4951 taxes on lines 1 and 2 and enter the section 4952 tax on line 4, with a total of the tax due on line 5. Pay in full with the return. Make the check or money order payable to the “United States Treasury.” In all other instances, follow “Specific Instructions” given above.
The payment of section 4951 tax for the tax year will not necessarily satisfy the entire initial tax liability for an act of self-dealing. A self-dealer who is liable for tax under section 4951 must file Form 990-BL, Schedule A (Form 990-BL) and must pay the tax for each year (or part of a year) in the “taxable period.”
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