Organizations with no UBTI.

An organization with no UBTI that needs to file Form 990-T should complete and file Form 990-T only. Such an organization does not complete or attach Schedule A (Form 990-T) to its return.

Claim for refund (including special instructions for IRA trustees or direct payments of certain credits).

If your only reason for filing a Form 990-T is to claim a refund or request a credit, complete the following.

For claims described below, follow the additional instructions for that claim.

Required electronic filing.

If you are an organization or trust defined in section 511 and need to file Form 990-T, you are required to file electronically. For additional information, visit IRS.gov/E-file.

If you are an applicable entity that is not an organization or trust defined in section 511, and you are filing Form 990-T to make an elective payment election, electronic filing is encouraged but not required.

Interest.

Interest is charged on taxes not paid by the original due date of the return even if the organization uses Form 8868 to request an automatic extension of time to file. Interest is also charged on penalties imposed for failure to file, negligence, fraud, substantial valuation misstatements, and substantial understatements of tax from the due date (including extensions) to the date of payment. The interest charge is figured at the underpayment rate determined under section 6621.

Late filing of return.

An organization that fails to file its return when due (including extensions of time for filing) is subject to a penalty of 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $485. The penalty won't be imposed if the organization can show that the failure to file on time was due to reasonable cause. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Don’t include an explanation when you file your return.

Late payment of tax.

The penalty for late payment of taxes is usually 1/2 of 1% of the unpaid tax for each month or part of a month the tax is unpaid. The penalty can’t exceed 25% of the unpaid tax. If you receive a notice about a penalty after you file this return, reply to the notice with an explanation and we will determine if you meet reasonable-cause criteria. Don’t include an explanation when you file your return.

Estimated tax penalty.

An organization that doesn’t make estimated tax payments when due may be subject to an underpayment penalty for the period of underpayment. Generally, an organization is subject to this penalty if its tax liability for the tax year is $500 or more and it didn’t make estimated tax payments of at least the smaller of its tax liability for the tax year or 100% of the prior year's tax. See section 6655 for details and exceptions.

Trust fund recovery penalty.

This penalty may apply if certain excise, income, social security, and Medicare taxes that must be collected or withheld aren't paid to the U.S. Treasury. These taxes are generally reported on:

The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to have been responsible for collecting, accounting for, and paying over these taxes, and who acted willfully in not doing so. The penalty is equal to the unpaid trust fund tax. See the Instructions for Form 720; or Pub. 15 (Circular E), Employer's Tax Guide, for details, including the definition of responsible persons.

Other penalties.

There are also penalties that can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. See sections 6662, 6662A, and 6663.

Forms W-2 and W-3.

File Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, to report wages, tips, other compensation, withheld income taxes, and withheld social security/Medicare taxes for employees.

Form 461.

Noncorporate taxpayers may need to file Form 461, Limitation on Business Losses. See Form 461 and its instructions.

Form 720.

File Form 720, Quarterly Federal Excise Tax Return, to report environmental excise taxes, communications and air transportation taxes, fuel taxes, manufacturers taxes, ship passenger tax, and certain other excise taxes. See Trust fund recovery penalty, earlier.

Form 926.

File Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, if the organization is required to report certain transfers to foreign corporations under section 6038B.

Form 940.

File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, if the organization is liable for FUTA tax.

Form 941 and Form 943.

File Form 941, Employer's QUARTERLY Federal Tax Return; or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, to report income tax withheld, and employer and employee social security and Medicare taxes. Also, see Trust fund recovery penalty, earlier.

Form 945.

File Form 945, Annual Return of Withheld Federal Income Tax, to report income tax withheld from nonpayroll distributions or payments, including pensions, annuities, IRAs, gambling winnings, and backup withholding.

Form 965-A and Form 965-B.

See Form 965-A, Individual Report of Net 965 Tax Liability; Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts; and their respective instructions, for more information.

Form 1098.

File Form 1098, Mortgage Interest Statement, to report the receipt from any individual of $600 or more of mortgage interest (including points) in the course of the organization's trade or business and reimbursements of overpaid interest.

Forms 1099-A, B, DIV, INT, LTC, MISC, NEC, OID, R, S, and SA.

Organizations engaged in an unrelated trade or business may be required to:

When filing the above listed Form 1099 series information returns, the organization must also file Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

Form 4466.

File Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund if the organization overpaid its estimated tax for the year by at least 10% of its expected income tax liability and at least $500.

Form 5498.

File Form 5498, IRA Contribution Information, to report contributions (including rollover contributions) to any IRA, including a SEP, SIMPLE, or Roth IRA, and to report Roth IRA conversions, IRAs, and the fair market value (FMV) of the account.

Form 5498-ESA.

File Form 5498-ESA, Coverdell ESA Contribution Information, to report contributions (including rollover contributions) to a Coverdell ESA.

Form 5498-SA.

File Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, to report contributions to an HSA or Archer MSA, and the FMV of an HSA, an Archer MSA, or a Medicare Advantage MSA. See the Instructions for Forms 1099-SA and 5498-SA.

Form 5713.

File Form 5713, International Boycott Report, if the organization had operations in, or related to, certain boycotting countries.

Form 5884-C.

File Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, to claim the work opportunity credit for qualified first-year wages paid to qualified veterans who begin working for the organization on or after November 22, 2011, and before January 1, 2026.

Form 5884-D.

File Form 5884-D, Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters, to claim the employee retention credit against certain payroll taxes if activities of the organization became inoperable because of damage from a qualified disaster. See the Instructions for Form 5884-D for more information.

Form 6198.

File Form 6198, At-Risk Limitations, if the organization has a loss from an at-risk activity conducted as a trade or business or for the production of income.

Forms 8275 and 8275-R.

Taxpayers and income tax return preparers file Form 8275, Disclosure Statement, and Form 8275-R, Regulation Disclosure Statement, to disclose items or positions taken on a tax return or that are contrary to Treasury regulations (to avoid parts of the accuracy-related penalty or certain preparer penalties).

Form 8300.

File Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if the organization received more than $10,000 in cash or foreign currency in one transaction or in a series of related transactions. See Form 8300, Instructions for Form 8300, and Regulations section 1.6050I-1(c).

Form 8582.

File Form 8582, Passive Activity Loss Limitations, for trusts that have losses (including prior-year unallowed losses) from passive activities.

Form 8697.

File Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, to figure the interest due or to be refunded under the look-back method of section 460(b)(2). The look-back method applies to certain long-term contracts that are accounted for under either the percentage method or the completion-capitalized cost method.

Form 8810.

File Form 8810, Corporate Passive Activity Loss and Credit Limitations, for closely held corporations that have losses or credits (including prior-year unallowed losses and credits) from passive activities.

Form 8865.

File Form 8865, Return of U.S. Persons With Respect To Certain Foreign Partnerships, if the organization:

Also, the organization may have to file Form 8865 to report certain dispositions by a foreign partnership of property it previously contributed to that foreign partnership if it was a partner at the time of the disposition. See Form 8865 and its separate instructions.

Form 8886.

File Form 8886, Reportable Transaction Disclosure Statement, to disclose information for each reportable transaction in which the organization participated. Form 8886 must be filed for each tax year that the federal income tax liability of the organization is affected by its participation in the transaction. The organization may have to pay a penalty if it is required to file Form 8886 but doesn’t do so. The following are reportable transactions.

Form 8886-T.

File Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction, to disclose information with respect to each prohibited tax shelter transaction to which the organization is a party.

Form 8899.

File Form 8899, Notice of Income From Donated Intellectual Property, to report income from qualified intellectual property.

Form 8925.

File Form 8925, Report of Employer-Owned Life Insurance Contracts, which must be filed by every applicable policyholder owning one or more employer-owned life insurance contracts issued after August 17, 2006.

Form 8975.

Certain U.S. persons that are the ultimate parent entity of a U.S. multinational enterprise group with annual revenue for the preceding reporting period of $850 million or more are required to file Form 8975. Form 8975 and its Schedules A (Form 8975) must be filed with the income tax return of the ultimate parent entity of a U.S. multinational enterprise group for the tax year in or within which the reporting period covered by Form 8975 ends. For more information, see Form 8975, Schedule A (Form 8975), and the Instructions for Form 8975 and Schedule A (Form 8975).

Form 8978.

File Form 8978, Partner's Additional Reporting Year Tax, to report adjustments shown on Form 8986, Partner's Share of Adjustment(s) to Partnership-Related Items, received from a partnership that has elected to push out adjustments to partnership-related items to their partners.

Form 8990.

File Form 8990, Limitation on Business Interest Expense Under Section 163(j), to claim a deduction for business interest unless the taxpayer meets certain specified exceptions. Also, Form 8990 must be filed by any taxpayer that owns an interest in a partnership with current-year or prior-year carryover excess business interest expense allocated from the partnership.

Form 8991.

File Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts, for any corporation, other than a RIC, a REIT, or an S corporation, that has aggregate gross receipts of at least $500 million in 1 or more of the 3 preceding tax years ending with the preceding tax year.

Form 8993.

File Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI), for the allowance of a deduction for the eligible percentage of FDII. The deduction is allowed only to domestic corporations (not including REITs, RICs, and S corporations).

Form 8994.

File Form 8994, Employer Credit for Paid Family and Medical Leave, to figure the employer credit for paid leave.

Form 8995.

Refer to Form 8995, Qualified Business Income Deduction Simplified Computation, if you are a trust filing Form 990-T and have unrelated business income, to determine if you have qualified business income (QBI) and may be allowed a QBI deduction under section 199A. See the instructions for Form 8995, Part I, line 9.

Form 8995-A.

Refer to Form 8995-A. Use this form to figure your qualified business income deduction. Use separate Schedules A, B, C, and/or D, as appropriate, to help calculate the deduction.

Form 8997.

File Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, annually to report investments held in a QOF at any time during the year. See the instructions for Form 8997.

Accounting method change.

Once a taxpayer, including a tax-exempt entity, adopts an accounting method for federal income tax purposes, the taxpayer must generally request the IRS consent before it can change its accounting method (even if the year in which the taxpayer seeks to make the change is a year in which it generates only tax-exempt income or is otherwise not taxed on its taxable income). In most cases, a taxpayer requests consent to change an accounting method by filing Form 3115, Application for Change in Accounting Method. See Rev. Proc. 2015-13, or any successor, for general procedures for obtaining consent to change an accounting method. See the Instructions for Form 3115 and Pub. 538 for more information and exceptions. See Rev. Proc. 2021-34 for additional procedures that may apply for obtaining automatic consent to change methods of accounting for revenue recognition and certain other methods of accounting that may affect the accounting for revenue recognition. Also see Rev. Proc. 2022-09 for additional procedures that may apply for obtaining automatic consent to change certain methods of accounting related to small businesses.

Depending on the specific accounting method change being requested, the taxpayer may be able to request automatic consent. This means that, as long as the taxpayer follows the applicable procedures, the taxpayer does not have to wait for formal approval by the IRS before applying the new accounting method available at Rev. Proc. 2022-14, for the List of Automatic Changes for 2022; as modified by Rev. Proc. 2022-23; 2022-18 I.R.B. 1052, available at Rev. Proc. 2022-23, providing guidance allowing late elections under sections 168(j)(8) and 168(l)(3)(D), and also providing guidance allowing a late election under section 181(a)(1), for a list of accounting method changes that may qualify for automatic consent.

For example, a tax-exempt entity that has adopted an accounting method for an item of income from an unrelated trade or business must generally request consent before it can change its method of accounting for that item in any subsequent year. This is true regardless of whether gross income from the unrelated trade or business is $1,000 or more in such subsequent year.

Alternatively, if a taxpayer, including a tax-exempt entity, has not yet adopted an accounting method for an item of income or deduction, a change in how the entity reports the item isn’t a change in accounting method. In this case, the procedures applicable to requests for accounting method changes (the requirement to file Form 3115) aren’t applicable. See Rev. Proc. 2015-13 for the definition of what constitutes an accounting method change.

Thus, a tax-exempt entity that has never taken into account an item of income or deduction in determining taxable income does not have to request consent to change its method of reporting that item on its Form 990-T. Additionally, a tax-exempt entity that has never been subject to federal income tax on an item of income or deduction, but that is required to file a Form 990-T solely due to owing a section 6033(e)(2) proxy tax, does not have to request consent to change its method for reporting the item.

Item A.

If the organization has changed its address since it last filed a return, check item A.

If a change in address occurs after the return is filed, use Form 8822-B, Change of Address or Responsible Party — Business, to notify the IRS of the new address.

Item B.

Check the box under which the organization receives its tax exemption.

Qualified pension, profit-sharing, and stock bonus plans should check the 501 box and enter “a” between the first set of parentheses. Do not make an entry in the space between the second parentheses.

For other organizations exempt under section 501, check the box for 501 and enter the section that describes their tax-exempt status, for example, 501(c)(3).

For tax-exempt organizations that don't receive their exemption under section 501, use the following guide.

Public colleges and universities that have not obtained recognition of exemption under section 501(c)(3), and applicable entities that are not described in section 501(a) should not check any box in item B.

Item C.

Enter the total of the end-of-year assets from the organization's books of account.

Item D.

Every organization or entity filing Form 990-T must have its own employer identification number (EIN).

No organization or other entity should use the EIN of any other organization or entity.

An employees' trust described in section 401(a) and exempt under section 501(a) should enter its own trust identification number in this block.

An IRA trust enters its own EIN in this block. An IRA trust never enters a social security number (SSN) or the trustee's EIN.

An EIN may be applied for in one of the following ways.

Item E.

If the organization is covered by a group exemption, enter the group exemption number.

Item F.

Check this box if the organization previously filed a Form 990-T return with the IRS for a tax year and is now filing another return for the same tax year to amend the previously filed return. Also, see Amended return, earlier, for information you must include in an amended return.

Item G.

Check the box that describes your organization.

Check the box for "6417(d)(1)(A) Applicable entity" only if no other checkbox on this line applies. For example, a rural electric cooperative exempt under section 501(c)(12) should check the box for 501(c) Corporation or 501(c) Trust, (as the case may be). Similarly, a public college or university should check the box for "State college/university" even if it is filing Form 990-T solely with regard to an elective payment election.

“Other trust” includes IRAs, SEPs, SIMPLEs, Roth IRAs, Coverdell ESAs, and Archer MSAs.

Section 529 organizations check the 501(c) corporation or 501(c) trust box depending on whether the organization is a corporation or a trust. Also, the box for 529(a) in item B must be checked.

Item H.

Check if filing Form 990-T only to claim a credit from Form 8941, to claim a refund shown on Form 2439, or to claim the elective payment election amount from Form 3800.

Item I.

Check if you are a 501(c)(3) organization filing a consolidated return with a 501(c)(2) title holding corporation. See Consolidated returns, earlier, for additional information.

Item J.

Enter the total number of Schedules A attached to Form 990-T. An organization with one or more unrelated trades or businesses will complete a separate Schedule A for each unrelated trade or business.

Complete all needed Schedules A before completing Parts I through V of Form 990-T.

Item K.

Check “Yes” box if your organization is a corporation and either (1) or (2) below applies.

Item L.

Enter the name and address of the person who has the organization's books and records and the telephone number at which they can be reached.

Line 1.

Enter the sum of the positive amounts from all Schedules A (Form 990-T), Part II, line 18. Don’t include any amount from Schedule A (Form 990-T), Part II, line 18, that is less than zero in the computation of total unrelated trade or business income reported on Part I, line 1.

Line 2.

Reserved. Do not enter any amount on this line.

Line 1.

Multiply Part I, line 11, by 21% (0.21).

Line 2.

Trusts exempt under section 501(a), which otherwise would be subject to subchapter J (estates, trusts, etc.), are taxed at trust rates. This rule also applies to employees' trusts that qualify under section 401(a). Most trusts figure the tax on the UBTI amount on Part I, line 11, using the Tax Rate Schedule for Trusts, below. If the tax rate schedule is used, enter the tax on Part II, line 2, and check the “Tax rate schedule” box. If the trust is eligible for the rates on net capital gains and qualified dividends, complete Schedule D (Form 1041) and enter on Part II, line 2, the tax from Schedule D (Form 1041). Check the “Schedule D” box on line 2 and attach Schedule D (Form 1041) to Form 990-T.

Line 3.

To pay the section 6033(e)(2) proxy tax on nondeductible lobbying and political expenditures, enter the proxy tax on Part II, line 3, and attach a statement showing the computation.

Exempt organizations, except section 501(c)(3) and certain other organizations, must include certain information regarding lobbying expenditures on Form 990. In addition, organizations may have to provide notices to members regarding their share of dues to which the expenditures are allocable. See the Instructions for Form 990 and Rev. Proc. 98-19, 1998-1 C.B. 547, for exceptions.

If the organization elects not to provide the notices described earlier, it must pay the proxy tax described in section 6033(e)(2). If the organization doesn’t include the entire amount of allocable dues in the notices, it may have to pay the proxy tax. This tax isn't applicable to section 501(c)(3) organizations. Figure the proxy tax by multiplying the aggregate amount not included in the notices described earlier by 21%. No deductions are allowed.

Line 4.

Part II, line 4, is intended to capture any positive tax amount that doesn’t have a specific line. An MeF (Internet filing) dependency (attachment) captures the detail. Use line 4 to report tax amounts not reported on a specific line in Part II (excluding tax deferred under section 1294, which is included on Part III, line 4).

Unless otherwise indicated, when reporting deferred tax on line 4, don't include interest on the tax amount. Instead, report such interest as an “other amount due” on Part III, line 3. For example, interest on tax deferred under section 1291(c)(1), determined under section 1291(c)(3) is reported on Part III, line 3.

How to report.

Attach a statement to Part II, line 4, showing (a) a brief description of the type of tax, and (b) the amount. For example, if the organization is reporting $100 of tax due from an increase in tax attributable to a partner's audit liability (Form 8978), the attachment would show “Form 8978” and “$100.”

Line 5.

Organizations liable for tax on unrelated business taxable income may be liable for alternative minimum tax.

Trusts attach Schedule I, Alternative Minimum Tax–Estate and Trusts, and enter any tax from Schedule I on this line.

Corporations may need to complete and attach Form 4626, Alterative Minimum Tax–Corporation, and enter any tax from Form 4626 on this line. See the Instructions for Form 4626 for more information.

Line 6.

There is a tax on a hospital organization’s noncompliant facility income. See Regulations section 1.501(r)-2 for more information. This tax is an income tax and is separate from the excise tax on a failure to meet the community health needs assessment requirements of section 501(r)(3) that is reported on Form 4720.

Line 7.

Add Part II, lines 3, 4, 5, and 6, to Part II, line 1 or 2, whichever applies.

Line 1a.

Complete the form that applies to the organization and attach the form to Form 990-T. Enter the credit on this line.

Line 1b.

Use line 1b to enter nonrefundable credits not identified elsewhere in Part III, line 1. Attach a statement that lists the applicable form and the amount of the credit. Such credits may include the following.

Line 1c.

Enter the organization's total general business credit (excluding the work opportunity credit, the employee retention credit, the empowerment zone employment credit, the Indian employment credit, and the credit for employer differential wage payments). See the Instructions for Form 3800 for exceptions.

The organization is required to file Form 3800, General Business Credit, to claim any business credit. For a list of credits, see Form 3800. Include the allowable credit from Form 3800, Part II, line 38, on Form 990-T, Part III, line 1c.

Do not enter the net elective payment election amount from Form 3800 on line 1c. Enter the elective payment election amount from Form 3800 on line 6g.

An organization described in section 501(c) which is exempt from tax under section 501(a) should not use Form 3800 to claim the refundable small employer tax credit for certain health insurance premiums paid on behalf of its employees. See the instructions for Part III, line 6f. See the instructions to Form 3800.

Line 1d.

Use Form 8801 to figure the minimum tax credit and any carryforwards of that credit for trusts. For corporations, use Form 8827.

Line 1e.

Add lines 1a through 1d.

Line 3e. Other

Additional amounts due may be included in the total entered on Part III, line 3. Check the box for “Other” if the organization includes any of the items discussed. See How to report below for details on reporting these amounts on an attached statement.

Line 4.

Include any deferred tax on the termination of a section 1294 election applicable to shareholders in a qualified electing fund (QEF) in the amount entered on Part III, line 4. See Form 8621, Part VI, and How to report, later.

Subtract from the total entered on Part III, line 4, any deferred tax on the corporation's share of undistributed earnings of a QEF. See Form 8621, Part III.

Line 6b.

Enter the total estimated tax payments made for the tax year.

If an organization is the beneficiary of a trust, and the trust makes a section 643(g) election to credit its estimated tax payments to its beneficiaries, include the organization's share of the estimated tax payments in the total amount entered here. Attach a statement showing the amount of the section 643(g) credit amount.

Line 6d.

Enter the tax withheld on UBTI from U.S. sources that isn't effectively connected with the conduct of a trade or business within the United States. Attach Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, or another form which verifies the withheld tax reported on Part III, line 6d.

Line 6e.

Recipients of dividend or interest payments must generally certify their correct tax identification number to the bank or other payer on Form W-9. If the payer doesn’t get this information, it must withhold part of the payments as “backup withholding.” If your organization was subject to erroneous backup withholding because the payer didn’t realize you were an exempt organization and not subject to this withholding, you can claim credit for the amount withheld by including it on Part III, line 6e. See Backup withholding under Which Parts To Complete, earlier.

Line 6f.

An organization described in section 501(c) which is exempt from tax under section 501(a) may be eligible to claim the refundable small employer tax credit for a percentage of certain health insurance premiums paid on behalf of its employees.

A tax-exempt eligible small employer can request the refundable credit by attaching Form 8941, Credit for Small Employer Health Insurance Premiums, showing the calculation for the amount of the refundable credit claimed. A tax-exempt organization is eligible for the refundable credit if it is an organization that is described in section 501(c) which is exempt from tax under section 501(a). The organization must keep records to substantiate the amount of the credit claimed.

Line 6g.

Enter the elective payment election amount from Form 3800. See the Instructions for Form 3800. On line 6g, enter the total net elective payment election amount from Form 3800, Part III, line 6, column (i).

Line 6h.

Enter the elective payment election amount from Form 3800. See the Instruction for Form 3800.

Enter the amount of tax paid by a regulated investment company (RIC) or real estate investment trust (REIT) on undistributed long-term capital gains. Attach each Form 2439 you received from each RIC or REIT of which you are a shareholder. If you are filing a composite Form 990-T, see Composite Form 990-T under Which Parts To Complete, earlier.

Line 6i.

If you paid a federal excise tax on certain fuels and qualify for any of the credits listed below, attach Form 4136 to your return and enter the total credit on line 6i.

See the instructions for Form 4136 for more information about these credits.

Line 6j.

For other credits, check the “Other ” box and provide the following information:

If necessary, provide information required to claim a specific credit in Part V, Supplemental Information.

Other credits may include the following:

Line 8.

Use Form 2220, Underpayment of Estimated Tax by Corporations, to see if the organization owes a penalty and its amount. Generally, the organization isn't required to file this form because the IRS can figure the amount of any penalty and notify the organization. However, even if the organization doesn’t owe the penalty, you must complete and attach Form 2220 if either of the following applies.

If you attach Form 2220, check the box on Form 990-T, Part III, line 8, and enter the amount of any penalty on this line.

Line 9.

You must pay the tax in full when the return is filed. You may pay by EFTPS. For more information about EFTPS, see Electronic Deposit Requirement, earlier. Also, you may pay by credit or debit card.

Line 1.

Check “Yes” if either item (1) or (2) below applies.

If the “Yes” box is checked, write the name of the foreign country or countries. If the list of foreign country names will not fit in the available space, continue the list in Part V, Supplemental Information.

Get FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to see if the organization is considered to have an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account). If the organization is required to file this form, file FinCEN Form 114 electronically with the Department of the Treasury using FinCEN's BSA E-Filing System. Because FinCEN Form 114 isn't a tax form, don't file it with Form 990-T.

See FinCEN for more information.

Line 2.

The organization may be required to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, if either of the following applies.

See the Instructions for Form 3520.

An owner of a foreign trust must ensure that the trust files an annual information return on Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. For details, see the Instructions for Form 3520-A.

Line 3.

Report any tax-exempt interest received or accrued in the space provided. Include any exempt-interest dividends received as a shareholder in a mutual fund or other RIC.

Line 4.

Use line 4 to show the amount of the NOL carryover to the tax year from tax years prior to 2018 (“pre-2018 NOL”), even if some of the loss is used to offset income on this return. The amount to enter is the total of all pre-2018 NOLs generated in any year prior to 2018, and not used to offset income (either as a carryback or carryover) to a tax year prior to 2023. Do not reduce the amount by any NOL deduction reported on Part I, line 6.

Line 5.

Use the table in line 5 to show the amount of each NOL carryover from tax years after 2017 that is attributable to each separate trade or business conducted at any time after 2017 (“siloed post-2017 NOL”) to the tax year. Include the NOL for each separate trade or business conducted after 2017, even if a Schedule A for any one or more specific trades or businesses isn’t included with this return for this tax year. Report the full amount of the available NOL for each separate trade or business, even if some of the loss is used.

In the first column under line 5, identify the business activity code to which each NOL relates. In the second column, enter the total amount of each siloed post-2017 NOL generated in any prior year after 2017 and not used to offset income (either as a carryback or carryover) to a tax year prior to 2023 to offset income reported on a Schedule A filed for that separate trade or business on this return. Don’t reduce the amount by any NOL deduction reported on Schedule A, Part II, line 17. See Separate Trades or Businesses, later, for information about changing the business activity code associated with a particular trade or business, and the effect of such a change on NOLs.

Corporations.

The return must be signed and dated by the president, vice president, treasurer, assistant treasurer, or chief accounting officer, or by any other corporate officer (such as a tax officer) authorized to sign. Receivers, trustees, or assignees must also sign and date any return filed on behalf of the organization.

Trusts.

The return must be signed and dated by the individual fiduciary, or by the authorized officer of the trust receiving or having custody or control and management of the income of the trust. If two or more individuals act jointly as fiduciaries, any one of them may sign.

Paid preparer.

If an officer of the organization filled in its return, the paid preparer's space should remain blank. Anyone who prepares the return but doesn’t charge the organization should not sign the return. Certain others who prepare the return should not sign. For example, a regular, full-time employee of the organization, such as a clerk, secretary, etc., should not sign.

Generally, anyone who is paid to prepare the organization's tax return must sign it and fill in the Paid Preparer Use Only area.

The paid preparer must complete the required preparer information and do the following.

Paid preparer authorization.

If the organization wants to allow the IRS to discuss this tax return with the paid preparer who signed it, check the “Yes” box in the signature area of the return. This authorization applies only to the individual whose signature appears in the Paid Preparer Use Only section of its return. It doesn’t apply to the firm, if any, shown in that section.

If the “Yes” box is checked, the organization is authorizing the IRS to call the paid preparer to:

The organization isn't authorizing the paid preparer to receive any refund check, bind the organization to anything (including any additional tax liability), or otherwise represent the organization before the IRS. If the organization wants to expand the paid preparer's authorization, see Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization can’t be revoked. However, the authorization will automatically end no later than the due date (excluding extensions) for filing next year's Form 990-T.

Enter the paid preparer’s Preparer Tax Identification Number (PTIN), not their SSN, in the “PTIN” box in the paid preparer’s block. Because Form 990-T is publicly disclosable when filed by a 501(c)(3) organization, any information entered in this block will be publicly disclosed. For more information about PTINs, go to IRS.gov/Taxpros.

Item A.

Enter the same name as entered in the heading area of Form 990-T.

Item B.

Enter the same EIN as entered in item D of Form 990-T.

Item C.

On each Schedule A, enter the business activity code that best describes the organization's unrelated trade or business reported on that Schedule A. Modernized e-File requires a 6-digit numerical entry for item C. Unless you are using a 6-digit non-NAICS business activity code, you should enter the 2 digits of the NAICS code in the first two positions and then enter 4 zeros to complete the entry. For example, if the 2-digit business activity code 45 (for retail trade) best describes your unrelated trade or business, enter “450000” in item C. See Business Activity Codes, later, for more information about business activity codes.

Line 1a.

Enter the gross receipts from an unrelated trade or business regularly conducted that involves the sale of goods or performance of services.

A section 501(c)(7) social club would report its restaurant and bar receipts from nonmembers on Schedule A, Part I, line 1, but would report its investment income on Schedule A, Part I, line 9, and on Schedule A, Part VII.

Line 4a.

Generally, organizations required to file Form 990-T (except organizations described in sections 501(c)(7), (9), and (17)) aren't taxed on the net gains from the sale, exchange, or other disposition of property. However, net capital gains on debt-financed property, capital gains on cutting timber, and ordinary gains on sections 1245, 1250, 1252, 1254, and 1255 property are taxed. See Form 4797, Sales of Business Property, and its instructions for additional information.

Also, any capital gain or loss passed through from an S corporation or any gain or loss on the disposition of S corporation stock by a qualified tax-exempt organization (see S Corporations, later) is taxed as a capital gain or loss and reported on Part I, line 4.

Capital gains and losses should be reported by a trust on Schedule D (Form 1041), Capital Gains and Losses, and by a corporation on Schedule D (Form 1120), Capital Gains and Losses (and Form 8949, Sale and Other Dispositions of Capital Assets). Schedule D of Form 1041 or Form 1120 (and Form 8949, if applicable) must be attached to Form 990-T.

If you deferred a capital gain into a QOF, you must attach Schedule D, Form 8949, and Form 8997 to your Form 990-T. You will need to annually file Form 8997 until you dispose of the investment. See the Instructions for Form 8997.

An organization that transfers securities it owns for the contractual obligation of the borrower to return identical securities recognizes no gain or loss on that exchange or on the subsequent receipt of identical securities in satisfaction of the contractual obligation. To qualify for this treatment, the organization must lend the securities under an agreement that requires:

See sections 512(a)(5) and 1058(b) for details.

Line 4b.

Show gains and losses on other than capital assets on Form 4797. Enter on this line the net gain or (loss) from Form 4797, Part II, line 17.

An exempt organization using Form 4797 to report ordinary gain on sections 1245, 1250, 1252, 1254, and 1255 property will include only depreciation, amortization, or depletion allowed or allowable in figuring UBTI or taxable income of the organization (or a predecessor organization) for a period when it was not exempt.

Line 4c.

If a trust has a net capital loss, it is subject to the limitations of Schedule D (Form 1041). Enter on this line the loss figured on Schedule D (Form 1041).

Line 5.

See Regulations section 1.512(a)-6 for rules permitting the aggregation of income (and directly connected deductions) of certain partnership interests.

Qualified tax-exempts.

A qualified tax-exempt is an organization that is described in section 401(a) (qualified stock bonus, pension, and profit-sharing plans) or 501(c)(3) and exempt from tax under section 501(a).

Exception.

Employee stock ownership plans (ESOPs) don't follow these S corporation rules if the S corporation stock is an employer security, as defined in section 409(l).

Attach a statement to this return showing the qualified tax-exempt's share of all items of income, loss, or deduction. Combine the income, loss, and deductions (except for the capital gains and losses) on the statement. If you hold stock in more than one S corporation, total the combined amounts. Show capital gains and losses separately and include them on Schedule A, Part I, line 4a.

Line 6.

Enter the amount computed on Part IV, line 3, on Part I, line 6, column (A). Enter the amount computed on Part IV, line 5, on Part I, line 6, column (B).

Line 7.

Enter the amount computed on Part V, line 8, on Part I, line 7, column (A). Enter the amount computed on Part V, line 10, on Part I, line 7, column (B).

Line 8.

Enter the sum of columns 5 and 10 from Part VI on Part I, line 8, column (A). Enter the sum of columns 6 and 11 from Part VI on Part I, line 8, column (B).

Line 9.

Enter the sum of amounts from Part VII, column 2, on Part I, line 9, column (A). Enter the sum of amounts in Part VII, column 5, on Part I, line 9, column (B).

Line 10.

Enter the amount computed on Part VIII, line 2, on Part I, line 10, column (A). Enter the amount computed on Part VIII, line 3, on Part I, line 10, column (B).

Line 11.

Enter the amount computed on Part IX, line 2, on Part I, line 11, column (A). Enter the amount computed on Part IX, line 3, on Part I, line 11, column (B).

Line 12.

Enter on Part I, line 12, any item of unrelated business income from a particular trade or business that isn't reportable elsewhere on the return. Attach a statement describing the sources of the other income and their amounts. Such amounts may include:

Organizations described in section 501(c)(19).

Enter the net income from an insurance business that was not properly set aside. These organizations may set aside income from payments received for life, sickness, accident, or health insurance for members of the organization or their dependents.

Amounts set aside and used for purposes other than those in (1), (2), or (3) above must be included in UBTI for the tax year if they were previously excluded from taxable income.

Any amount spent for a purpose described in section 170(c)(4) is first considered paid from funds earned by the organization from insurance activities if the income isn't used for the insurance activities.

Expenditures for lobbying aren't considered section 170(c)(4) expenses.

Income from property financed with qualified 501(c)(3) bonds.

If any part of the property is used in a trade or business of any person other than a section 501(c)(3) organization or a governmental unit, and such use isn't consistent with the requirement for qualified 501(c)(3) bonds under section 145, the section 501(c)(3) organization is considered to have received unrelated business income in the amount of the greater of the actual rental income or the fair rental value of the property for the period it is used. No deduction is allowed for interest on the private activity bond. Report the greater of the actual rent or the fair rental value on Schedule A, Part I, line 12. Report allowable deductions on Schedule A, Part II. See sections 150(b)(3) and (c).

PFIC shareholders.

If the organization is a direct or indirect shareholder of a PFIC within the meaning of section 1297, it may have income tax consequences under section 1291 upon the disposition of the PFIC stock or on the receipt of an excess distribution from the PFIC, described in section 1291(a). The organization may have current income under section 1293 if the PFIC is a QEF with respect to the organization. The organization may also have current income under section 1296 if it makes a section 1296 mark-to-market election with respect to the PFIC stock.

Include on Schedule A, Part I, line 12, the portion of an excess distribution (or gain treated as an excess distribution), section 1293 inclusion, or section 1296 inclusion that is taxable as UBTI. See Form 8621.

See the instructions for Form 990-T, Part II, line 4, for reporting the deferred tax amount that may be owed by the organization with respect to an excess distribution (or gain treated as an excess distribution).

Qualified transportation fringes (QTFs).

Generally, no deduction is allowed under section 274(a)(4) for QTFs provided by employers to their employees. QTFs are defined in section 132(f)(1) and include:

See section 274, Pub. 15-B, and Pub. 535 for details.

Travel.

The organization can’t deduct travel expenses of any individual accompanying an organization's officer or employee, including a spouse or dependent of the officer or employee, unless:

Meals.

Generally, the organization can deduct only 50% of the amount otherwise allowable for non-entertainment-related meal expenses paid or incurred in an unrelated trade or business. Meals not separately stated from entertainment are generally not deductible. In addition (subject to exceptions under section 274(k)(2)):

Membership dues.

The organization can deduct amounts paid or incurred for membership dues in civic or public service organizations, professional organizations (such as bar and medical associations), business leagues, trade associations, chambers of commerce, boards of trade, and real estate boards. However, no deduction is allowed if a principal purpose of the organization is to entertain or provide entertainment facilities for members or their guests. In addition, organizations can’t deduct membership dues in any club organized for business, pleasure, recreation, or other social purpose. This includes country clubs, golf and athletic clubs, airline and hotel clubs, and clubs operated to provide meals under conditions favorable to business discussion.

Entertainment facilities.

The organization can’t deduct an expense paid or incurred for use of a facility (such as a yacht or hunting lodge) for an activity usually considered entertainment, amusement, or recreation.

Amounts treated as compensation.

The organization may generally be able to deduct otherwise non-deductible travel, meals, and entertainment expenses if the amounts are treated as compensation and reported on Form W-2 for an employee or Form 1099-NEC for an independent contractor and if the total amount of such compensation isn't unreasonable.

Amortization.

Any costs not deducted under the above rules must be amortized ratably over the 180-month period, beginning with the month the organization begins business. See the Instructions for Form 4562, Depreciation and Amortization, for details. If the association elected to amortize business startup and organizational costs paid or incurred before October 23, 2004, over a period of 60 months or more, it must continue to amortize those costs over the elected amortization period. Report the deductible amount of these costs and any amortization on Schedule A, Part II, line 14. For amortization that began during the tax year, complete and attach Form 4562.

Line 3.

Enter the cost of incidental repairs and maintenance not claimed elsewhere on the return, such as labor and supplies, that don't add to the value or appreciably prolong the life of the property.

Line 4.

Enter the total receivables from an unrelated trade or business that were previously included in taxable income and that became worthless in whole or in part during the tax year.

Line 5.

Attach a separate statement listing the interest being claimed on this line.

Interest allocation.

If the proceeds of a loan were used for more than one purpose (for example, to purchase a portfolio investment and to acquire an interest in a passive activity), an interest allocation must be made. See Temporary Regulations section 1.163-8T for the interest allocation rules.

Tax-exempt interest.

Don't include interest on indebtedness incurred or continued to purchase or carry obligations on which the interest income is totally exempt from income tax. For exceptions, see section 265(b).

Prepaid interest.

Generally, a cash basis taxpayer can’t deduct prepaid interest allocable to years following the current tax year, for example, during the tax year a cash basis taxpayer prepaid interest on a loan. The taxpayer can deduct only that part of the prepaid interest that was for the use of the loaned funds during the tax year, not for the use of the loaned funds during the subsequent years.

Straddle interest.

Generally, the interest and carrying charges on straddles can’t be deducted and must be capitalized. See section 263(g).

Original issue discount.

See section 163(e)(5) for special rules for the disqualified portion of original issue discount on a high-yield discount obligation.

Interest on certain underpayments of tax.

Don't deduct interest paid or incurred on any portion of an underpayment of tax that is attributable to an understatement arising from an undisclosed listed transaction or an undisclosed reportable avoidance transaction (other than a listed transaction) entered into in tax years beginning after October 22, 2004.

Interest allocable to the production of designated property.

Don't deduct interest on debt allocable to the production of designated property. Interest that is allocable to such property produced by an organization for its own use or for sale must be capitalized. An organization must also capitalize any interest on debt allocable to an asset used to produce the earlier property. See section 263A(f) and Regulations sections 1.263A-8 through 1.263A-15.

Interest on below-market loans.

See section 7872 for special rules regarding the deductibility of foregone interest on certain below-market-rate loans.

Limitation on deduction of business interest.

Business interest expense is limited to the sum of business interest income, 30% of the adjusted taxable income, and floor plan financing interest. Business interest expense includes any interest paid or accrued on indebtedness properly allocable to an unrelated trade or business. A taxpayer, other than a tax shelter, that meets the gross receipts test isn’t required to limit business interest expense under section 163(j). A taxpayer meets the gross receipts test if the taxpayer has average annual gross receipts that are taken into account in determining its UBTI of $29 million or less for the 3 prior tax years. Gross receipts include the aggregate gross receipts from all persons treated as a single employer such as a controlled group of corporations, commonly controlled partnerships or proprietorships, and affiliated service groups. If the taxpayer fails to meet the gross receipts test, Form 8990 is generally required.

Line 6.

Enter taxes and license fees paid or accrued during the year, but don't include the following taxes.

Line 7.

Besides depreciation, include on line 7 the part of the cost, under section 179, that the organization elected to expense for certain tangible property placed in service during the tax year or carried over from the prior tax year. See Form 4562 and its instructions.

Line 9.

See sections 613 and 613A for percentage depletion rates for natural deposits. Attach Form T (Timber), Forest Activities Schedules, if a deduction is taken for depletion of timber.

Line 10.

Employers who maintain pension, profit-sharing, or other funded deferred compensation plans are generally required to file Form 5500. This requirement applies whether or not the plan is qualified under the Code and whether or not a deduction is claimed for the current tax year. Section 6652(e) imposes a penalty for late filing of these forms. In addition, there is a penalty for overstating the pension plan deduction. See section 6662(f).

Line 11.

Enter the amount of contributions to employee benefit programs (such as insurance, health, and welfare programs) that aren't an incidental part of a deferred compensation plan included on Schedule A, Part II, line 10.

Line 12.

Enter the amount computed on Part VIII, line 7 (if applicable), on Part II, line 12.

Line 13.

Enter the amount computed on Part IX, line 8a (if applicable), on Part II, line 13.

Line 14.

Enter on this line the deduction taken for amortization (see Form 4562) as well as other authorized deductions for which no space is provided on the return. Attach a statement listing the deductions claimed on this line. On each Schedule A, deduct only items directly connected with the unrelated trade or business for which income is reported on that Schedule A.

Extraterritorial income exclusion.

Complete Form 8873 and include the deduction from line 52 in other deductions reported on Part II, line 14.

Don't deduct fines or penalties paid to a government for violating any law. The exclusion was repealed generally for transactions after 2004, with some exceptions. See Form 8873 and its instructions.

Line 17.

The NOL deduction is the NOL carryover and carrybacks that can be deducted in the tax year with regard to each separate trade or business. To be deductible, an NOL must have been incurred in an unrelated trade or business activity. See section 172(a).

Tax Cuts and Jobs Act amendments to section 172.

Section 13302 of the Tax Cuts and Jobs Act amended section 172 for tax years ending after 2017 to eliminate NOL carrybacks except for certain farming losses and NOLs of insurance companies other than life insurance companies. See section 172(b), as amended by the Tax Cuts and Jobs Act. Also see Pub. 225, Farmer’s Tax Guide; Pub. 536, Net Operating Losses for Individuals, Estates, and Trusts; and Pub. 542, Corporations, for additional information. The Tax Cuts and Jobs Act also amended section 172(a)(2) to limit the allowable NOL deduction to 80% of taxable income (calculated as described in section 172(a)(2)).

Instructions for line 17.

Enter on Schedule A, Part II, line 17, the NOL carryover from other tax years attributable to that trade or business, but don't enter more than the amount shown on Schedule A, Part II, line 16. An organization that claims the deduction with respect to any NOL carried through tax years for which the organization was not required to file Form 990-T must show the amount of the deduction and how it was computed, but the organization need not file a Form 990-T in order to preserve an NOL carryover. See Regulations section 1.512(a)-6(h)(3) for treatment of suspended NOLs resulting from the termination, sale, exchange, or other disposition of a separate unrelated trade or business. After offsetting any gain resulting from the termination, sale, exchange, or disposition of a separate unrelated trade or business, any NOL remaining is suspended. However, the suspended NOLs may be used if that previous separate unrelated trade or business is later resumed or if a new unrelated trade or business that is accurately identified using the same NAICS 2-digit code as the previous separate unrelated trade or business is commenced or acquired in a future tax year.

The amount of an NOL carryover is determined under section 172. See Regulations section 1.512(b)-1(e) and, for organizations with more than one unrelated trade or business, Regulations section 1.512(a)-6(h). Attach a statement showing the computation of the NOL deduction.

Line 18.

Use the greater of the amount computed on line 18 or zero in the computation of UBTI on Part I, line 1, of Form 990-T. A net loss calculated on any Schedule A, Part II, line 18, can’t be used to offset gain on any other Schedule A. Accordingly, a net loss on a Schedule A should be treated as zero to calculate the amount reported on Part I, line 1, of Form 990-T

Line 1.

Check the box next to the property description if the property is used both to carry on exempt activities and to conduct unrelated trade or business activities.

Line 4.

For each property, attach a statement describing the directly connected deductions and their amounts.

Getting tax forms, instructions, and publications,

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