Instructions for Form 990-PF 2018

2018                                                                                                                                    Department of the Treasury
                                                                                                                                        Internal Revenue Service

Instructions for Form 990-PF
Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation
Section references are to the Internal Revenue
Code unless otherwise noted.
                                                                Contents                                        Page         Future Developments
                                                                    Part IV. Capital Gains and                               For the latest information about
Contents                                        Page                   Losses for Tax on                                     developments related to Form 990-PF and
General Instructions . . . . . . . . .      .   ... 2                  Investment Income . . . .            . . . 22         its instructions, such as legislation
   A. Who Must File . . . . . . . .         .   ... 2               Part V. Qualification Under                              enacted after they were published, go to
                                                                       Section 4940(e) for                                   IRS.gov/Form990PF.
   B. Which Parts To Complete               .   ... 2                  Reduced Tax on Net
   C. Definitions . . . . . . . . . .       .   ... 4                  Investment Income . . . .            . . . 22
   D. Other Forms You May                                           Part VI. Excise Tax Based                                What’s New
        Need To File . . . . . . . .        .... 4                     on Investment Income                                  Exception from the excise tax on ex-
   E. Useful Publications . . . .           .... 6                     (Section 4940(a),
                                                                       4940(b), 4940(e), or                                  cess business holdings. New section
   F. Use of Form 990-PF To                                                                                                  4943(g) created an exception from the
        Satisfy State Reporting                                        4948) . . . . . . . . . . . . .      . . . 22
                                                                    Part VII-A. Statements                                   excise tax on excess business holdings
        Requirements . . . . . . . .        .... 6
                                                                       Regarding Activities . . . .         . . . 24         for certain independently operated
   G. Furnishing Copies of
        Form 990-PF to State                                        Part VII-B. Statements                                   enterprises whose voting stock is wholly
        Officials . . . . . . . . . . . .   .... 7                     Regarding Activities for                              owned by a private foundation. For more
   H. Accounting Period . . . . .           .... 7                     Which Form 4720 May                                   details, see the instructions for Part VII-B,
                                                                       Be Required . . . . . . . . .        . . . 27         line 3.
   I. Accounting Methods . . . .            .... 7
                                                                    Part VIII. Information About
   J. When, Where, and How                                             Officers, Directors,                                  Tax on excess executive compensa-
        To File . . . . . . . . . . . .     .   .   .   .   7          Trustees, Foundation                                  tion. Starting in 2018, new section 4960
   Electronic Filing . . . . . . . .        .   .   .   .   8          Managers, Highly Paid                                 imposes an excise tax on a foundation
   K. Extension of Time To File             .   .   .   .   8          Employees, and                                        that pays to any covered employee more
   L. Amended Return . . . . . .            .   .   .   .   8          Contractors . . . . . . . . .        . . . 28         than $1 million in remuneration or pays an
   M. Penalty for Failure To File                                   Part IX-A. Summary of Direct                             excess parachute payment. See section
        Timely, Completely, or                                         Charitable Activities . . . .        . . . 29         4960 and Form 4720, Return of Certain
        Correctly . . . . . . . . . . .     .... 8                  Part IX-B. Summary of                                    Excise Taxes Under Chapters 41 and 42
   N. Penalties for Not Paying                                         Program-Related                                       of the Internal Revenue Code, for more
        Tax on Time . . . . . . . . .       .... 8                     Investments . . . . . . . . .        . . . 30         information.
   O. Figuring and Paying                                           Part X. Minimum Investment
        Estimated Tax . . . . . . .         .... 8                     Return . . . . . . . . . . . .       . . . 30         Inclusion of global intangible
                                                                    Part XI. Distributable Amount           . . . 32         low-taxed income (GILTI). New section
   P. Tax Payment Methods for
        Domestic Private                                            Part XII. Qualifying                                     951A requires U.S. shareholders of
        Foundations . . . . . . . . .       .... 9                     Distributions . . . . . . . . .      . . . 32         controlled foreign corporations to include
   Q. Public Inspection                                             Part XIII. Undistributed                                 their GILTI in taxable income. Section
        Requirements . . . . . . . .        .... 9                     Income . . . . . . . . . . . .       . . . 32         951A is effective for tax years of controlled
   R. Disclosures Regarding                                         Part XIV. Private Operating                              foreign corporations beginning after 2017
        Certain Information and                                        Foundations . . . . . . . . .        . . . 34         and to tax years of U.S. shareholders in
        Services Furnished . . . .          . . . 11                Part XV. Supplementary                                   which or with which such tax years of
   S. Organizations Organized                                          Information . . . . . . . . .        . . . 34         foreign corporations end. Use Form 8992,
        or Created in a Foreign                                     Part XVI-A. Analysis of                                  U.S. Shareholder Calculation of Global
        Country . . . . . . . . . . . .     . . . 12                   Income-Producing                                      Intangible Low-Taxed Income (GILTI), to
   T. Liquidation, Dissolution,                                        Activities . . . . . . . . . . .     . . . 35         figure the private foundation’s GILTI and
        Termination, or                                             Part XVI-B. Relationship of                              attach it to Form 990-PF. See section
        Substantial Contraction .           . . . 12                   Activities to the                                     951A for more information.
   U. Section 507(b)(1)(B)                                             Accomplishment of
        Termination—Notice and                                         Exempt Purposes . . . . .            . . . 36         Inclusion of section 965(a) income.
        Filing Requirements . . . .         . . . 12                Part XVII. Information                                   Section 965 was amended to require
   V. Payment of Section 4940                                          Regarding Transfers to                                certain taxpayers to include in income an
        Tax During Section                                             and Transactions and                                  amount based on the accumulated
        507(b)(1)(B) Termination            . . . 13                   Relationships With                                    post-1986 deferred foreign income of
   W. Rounding, Currency, and                                          Noncharitable Exempt                                  certain foreign corporations, deferred
        Attachments . . . . . . . . .       . . . 13                   Organizations . . . . . . . .        .   .   .   36   foreign income corporations (DFICs), of
Specific Instructions . . . . . . . . .     . . . 13                Signature . . . . . . . . . . . .       .   .   .   37   which they are U.S. shareholders, either
   Heading . . . . . . . . . . . . .        . . . 13                Paid Preparer . . . . . . . . . .       .   .   .   37   directly or indirectly through other entities.
   Part I. Analysis of Revenue                                  Paid Preparer Authorization . . . .         .   .   .   37   Other taxpayers may have inclusions in
        and Expenses . . . . . . .          . . . 14            How To Get Forms and                                         income under section 951(a) by reason of
   Part II. Balance Sheets . . . .          . . . 19                Publications . . . . . . . . . . .      . . . 38         section 965 due to ownership of DFICs
   Part III. Analysis of Changes                                Index . . . . . . . . . . . . . . . . . .   . . . 40         through pass-through entities that are
        in Net Assets or Fund                                                                                                themselves U.S. shareholders of DFICs.
        Balances . . . . . . . . . . .      . . . 22                                                                         Section 965(a) inclusions are taken into

Oct 01, 2018                                                                    Cat. No. 11290Y
account in the U.S. shareholder’s year that      included on this form. Documents subject      • Taxable private foundations (section
includes the last day of the relevant            to disclosure include schedules and           6033(d));
DFIC’s last tax year that began before           attachments filed with the form.              • Organizations that agree to private
January 1, 2018.                                                                               foundation status and whose applications
                                                                                               for exempt status are pending on the due
Increase in unrelated business taxable           Photographs of Missing                        date for filing Form 990-PF;
income (UBTI) by disallowed fringe.
For foundations that have employees,             Children                                      • Organizations that claim private
                                                 The IRS is a proud partner with the           foundation status, haven't yet applied for
UBTI, reported on Form 990-T, is
                                                 National Center for Missing & Exploited       exempt status, and whose application isn't
increased by any amount for which a
                                                 Children® (NCMEC). Photographs of             yet untimely under section 508(a) for
deduction is not allowable because of
                                                 missing children selected by the Center       retroactive recognition of exemption;
section 274 and which is paid or incurred
by the foundation after 2017 for any             may appear in instructions on pages that      • Organizations that made an election
                                                 would otherwise be blank. You can help        under section 41(e)(6)(D)(iv);
qualified transportation fringe (as defined
in section 132(f)), or any parking facility      bring these children home by looking at       • Private foundations that are making a
                                                 the photographs and calling                   section 507(b) termination; and
used in connection with qualified parking
(as defined in section 132 (f)(5)(C), or any     1-800-THE-LOST (1-800-843-5678) if you        • Section 4947(a)(1) nonexempt
                                                 recognize a child.                            charitable trusts treated as private
on-premises athletic facility (as defined in
                                                                                               foundations (section 6033(d)).
section 132(j)(4)(B). This rule doesn’t
apply to the extent the amount paid or           Phone Help                                            Include on the foundation's return
incurred is directly connected with an           If you have questions and/or need help         TIP the financial and other information
unrelated trade or business that is              completing this form, please call                      of any disregarded entity owned
regularly carried on the organization.           877-829-5500. This toll-free telephone        by the foundation. See Regulations
                                                 service is available Monday through           sections 301.7701-1 through 3 for
    Note. A deduction for expenses paid                                                        information on the classification of certain
or incurred for on-premises athletic             Friday.
                                                                                               business organizations, including an
facilities is disallowed due to application of
section 274 only if it discriminates in favor    IRS e-Services Makes                          eligible entity that is disregarded as an
                                                                                               entity separate from its owner
of highly compensated employees.                 Taxes Easier                                  (disregarded entity).
Financial Accounting Standards Board             Now more than ever before, businesses
                                                 can enjoy the benefits of filing and paying   Other section 4947(a)(1) nonexempt
Accounting Standards Codification
                                                 their federal taxes electronically. Whether   charitable trusts. Section 4947(a)(1)
(FASB ASC) changes. The Financial
                                                 you rely on a tax professional or handle      nonexempt charitable trusts not treated as
Accounting Standards Board (FASB)
                                                 your own taxes, the IRS offers you            private foundations don't file Form 990-PF.
issued financial statement reporting
                                                 convenient programs to make taxes             However, they may need to file Form 990,
changes in the Accounting Standards
                                                 easier.                                       Return of Organization Exempt From
Update (ASU) 2016-14 (ASU 2016-14),
Presentation of Financial Statements for          • You can e-file your Form 990-PF, Form      Income Tax, or Form 990-EZ, Short Form
                                                 940 and 941 employment tax returns, and       Return of Organization Exempt From
Not-for-Profit Entities. ASU 2016-14
                                                 Forms 1099 and other information returns.     Income Tax. With either of these forms,
changes the way not-for-profit
                                                 Visit IRS.gov/charities-non-profits/annual-   the trust must also file Schedule A (Form
organizations classify net assets.
                                                 reporting-and-filing for details.             990 or 990-EZ), Public Charity Status and
Reminders                                         • You can pay taxes online or by phone       Public Support, and other required
                                                 using the free Electronic Federal Tax         schedules. See the Form 990 and Form
If you are filing Form 990-PF because you        Payment System (EFTPS). Visit                 990-EZ instructions.
no longer meet a public support test under       EFTPS.gov or call 800-555-4477 for
section 509(a)(1) and you haven't
previously filed Form 990-PF, check Initial
                                                 details. Electronic Funds Withdrawal          B. Which Parts To
                                                 (EFW) from a checking or savings account
return of a former public charity in Item G      is also available to those who file
                                                                                               Complete
of the Heading section on page 1 of your         electronically.                               See the chart showing which parts of the
return. Before filing Form 990-PF for the                                                      form must be completed, later.
first time, you may want to go to
IRS.gov/EO for the latest information and        General Instructions                          How to avoid filing an incomplete re-
filing tips to confirm you are no longer a       Purpose of form. Form 990-PF is used:         turn.
publicly supported organization.                  • To figure the tax based on investment      • Complete all applicable line items.
    Most tax-exempt organizations, other         income, and                                   • Answer “Yes,” “No,” or “N/A” (not
than churches, are required to file an            • To report charitable distributions and     applicable) to each question on the return.
annual Form 990, 990-EZ, or 990-PF with          activities.                                   • Make an entry (including a zero when
the IRS, or to submit a Form 990-N                                                             appropriate) on all total lines.
                                                    Also, Form 990-PF serves as a
e-Postcard to the IRS. If a tax-exempt           substitute for the section 4947(a)(1)
                                                                                               • Enter “None” or “N/A” if an entire part
private foundation fails to file an annual                                                     doesn't apply.
                                                 nonexempt charitable trust's income tax
return as required for 3 consecutive years,      return, Form 1041, U.S. Income Tax            Sequencing Chart To Complete
it will automatically lose its tax-exempt        Return for Estates and Trusts, when the
status and will become a taxable private
                                                                                               the Form
                                                 trust has no taxable income.
foundation. See General Instruction M,                                                         You may find the following chart helpful. It
                                                                                               limits jumping from one part of the form to
later.                                           A. Who Must File                              another to figure an amount needed to
Don’t include social security numbers            Form 990-PF is an annual information          complete an earlier part. If you complete
on publicly disclosed forms. Because             return that must be filed by:                 the parts in the listed order below, any
the IRS is required to publicly disclose the     • Exempt private foundations (section         information you may need from another
organization's annual information returns,       6033(a), (b), and (c));                       part will already be entered.
social security numbers shouldn't be

                                                                     -2-                                      Form 990-PF Instructions
B. Which Parts To Complete
Some parts of the form listed below don't apply to some filers. See How to avoid filing an incomplete return, earlier, for
information on what to do if a part or an item doesn't apply.

                                  Part of Form 990-PF                                                  Foundations Which Must Complete This Part
 Heading                                                                              All
 Part I (analysis of revenues and expenses), columns (a) (revenue and expenses        All
 per books) and (d) (disbursements for charitable purposes)
 Part I (analysis of revenues and expenses), column (b) (net investment income)       All except (1) foreign taxable foundations, and (2) foreign nonexempt charitable
                                                                                      trusts; foreign 501(c)(3) foundations need not complete line 7 (capital gain net
                                                                                      income) or expense lines
 Part I (analysis of revenues and expenses), column (c) (adjusted net income)         Only foundations claiming operating foundation status, foundations (not
                                                                                      described in section 4948(b)) that derive income from a charitable activity and
                                                                                      claim a qualifying distribution for net losses from the activity, and domestic 501(c)
                                                                                      (3) foundations that maintain a common fund as described in section 170(b)(1)(F)
                                                                                      (iii)
 Part II (balance sheets) columns (a) and (b) (beginning and end-of-year book         All
 value)
 Part II (balance sheets), column (c) (end-of-year fair market value)                 All foundations with at least $5,000 in assets per books at some time during tax
                                                                                      year; other foundations complete only line 16
 Part III (analysis of changes in net assets or fund balances)                        All
 Part IV (capital gains and losses for tax on investment income)                      All except foreign foundations; line 3 must be completed only by foundations that
                                                                                      must complete Part I, column (c)
 Part V (qualification under section 4940(e) for reduced tax on investment income) All domestic foundations that claim the 1% tax rate on net investment income
                                                                                   under section 4940(e)
 Part VI (excise tax based on investment income)                                      All except (1) organizations electing private foundation status under section 41(e)
                                                                                      (6)(D), (2) foreign taxable foundations, and (3) foreign nonexempt charitable
                                                                                      trusts
 Part VII-A (statements regarding activities)                                         All; foreign foundations described in section 4948(b) need not complete lines 6
                                                                                      and 8, and in line 10 foreign foundations don't list persons who aren't U.S. citizens
 Part VII-B (statements regarding activities for which Form 4720 may be required)     All; foreign foundations described in section 4948(b) need not complete line 2
 Part VIII (information about officers, directors, trustees, foundation managers,     All
 highly paid employees, and contractors)
 Part IX-A (summary of direct charitable activities)                                  All
 Part IX-B (summary of program-related investments)                                   All
 Part X (minimum investment return)                                                   All except foreign foundations described in section 4948(b) that aren't claiming
                                                                                      operating foundation status
 Part XI (distributable amount)                                                       All except (1) foreign foundations described in section 4948(b), and (2)
                                                                                      foundations claiming operating foundation status
 Part XII (qualifying distributions)                                                  All except foreign foundations described in section 4948(b) that aren't claiming
                                                                                      operating foundation status
 Part XIII (undistributed income)                                                     All except foreign foundations described in section 4948(b); if the foundation
                                                                                      claims operating foundation status for any of the years shown in Part XIII, it
                                                                                      doesn't complete those portions of Part XIII that apply to those years
 Part XIV (private operating foundations)                                             Only foundations claiming operating foundation status
 Part XV (supplementary information)                                                  All except (1) foundations with less than $5,000 of assets per books at all times
                                                                                      during tax year, and (2) foreign foundations described in section 4948(b)
 Part XVI-A (analysis of income-producing activities)                                 All
 Part XVI-B (relationship of activities to the accomplishment of exempt purposes)     All
 Part XVII (information regarding transfers to and transactions and relationships     All
 with noncharitable exempt organizations)
 Signature block                                                                      All




Form 990-PF Instructions                                                            -3-
Step              Part       Step           Part             “foundation manager” may also include               If income, social security, and
 1   . . . . . .   IV         8.   . . . .   XII, lines 1–4
                                                              employees of the foundation who have the         Medicare taxes that must be withheld
 2   . . . . . .   I & II     9.   . . . .   V & VI           authority to act.                                aren't withheld or aren't paid to the IRS, a
 3   . . . . . .   Heading    10   . . . .   XII, lines 5–6       7. A disqualified person is any of the       trust fund recovery penalty may apply. The
 4   . . . . . .   III        11   . . . .   XI
                                                              following.                                       penalty is 100% of such unpaid taxes.
 5   . . . . . .   VII-A      12   . . . .   XIII
 6   . . . . . .   VIII       13   . . . .   VII-B                a. A substantial contributor (see the            This penalty may be imposed on all
 7                 IX-A – X   14             XIV – XVII
                                                              instructions for Part VII-A, line 10, later).
     . . . . . .                   . . . .
                                                                                                               persons (including volunteers (see below))
                                                                  b. A foundation manager.                     whom the IRS determines to be
                                                                  c. A person who owns more than 20%           responsible for collecting, accounting for,
C. Definitions                                                of a corporation, partnership, trust, or         and paying over these taxes, and who
                                                              unincorporated enterprise that is itself a       willfully didn't do so.
    1. A private foundation is a domestic
or foreign organization exempt from                           substantial contributor.
                                                                                                                   This penalty doesn't apply to any
income tax under section 501(a),                                  d. A family member of an individual          volunteer, unpaid member of any board of
described in section 501(c)(3), and is                        described in (a), (b), or (c) above.             trustees or directors of a tax-exempt
other than an organization described in                                                                        organization, if this member:
                                                                  e. A corporation, partnership, trust, or
sections 509(a)(1) through (4).                                                                                • Is solely serving in an honorary
                                                              estate in which persons described in (a),
    Churches, hospitals, schools, broadly                     (b), (c), or (d) above own a total beneficial    capacity;
publicly supported organizations,                             interest of more than 35%.                       • Doesn’t participate in the day-to-day or
supporting organizations, and                                                                                  financial activities of the organization; and
                                                                  f. For purposes of section 4941
organizations that test for public safety are
                                                              (self-dealing), a disqualified person also       • Doesn’t have actual knowledge of the
excluded from private foundation status by                                                                     failure to collect, account for, and pay over
                                                              includes certain government officials. (See
sections 509(a)(1) through (4). These                                                                          these taxes.
                                                              section 4946(c) and the related
organizations may be required to file Form                                                                     However, this exception doesn't apply if it
                                                              regulations.)
990, Form 990-EZ, or Form 990-N                                                                                results in no person being liable for the
(“e-Postcard”) instead of Form 990-PF.                            g. For purposes of section 4943              penalty.
                                                              (excess business holdings), a disqualified
    2. A nonexempt charitable trust                                                                            Form 720, Quarterly Federal Excise
                                                              person also includes:
treated as a private foundation is a trust                                                                     Tax Return. In addition to various federal
that isn't exempt from tax under section                          i. A private foundation effectively
                                                                                                               excise taxes that are paid with the filing of
501(a) and all of the unexpired interests of                  controlled (directly or indirectly) by the
                                                                                                               this form, the Patient-Centered Outcomes
which are devoted to religious, charitable,                   same persons who control the private
                                                                                                               Research Institute fee that is imposed on
or other purposes described in section                        foundation in question; or
                                                                                                               health insurers and employers who
170(c)(2)(B), and for which a charitable                          ii. A private foundation to which            maintain self-insured health plans is
deduction was allowed under a section of                      substantially all contributions were made        payable annually and reported on the
the Code listed in section 4947(a)(1).                        (directly or indirectly) by one or more of       Form 720 that is filed for the second
    3. A taxable private foundation is an                     the persons described in (a), (b), and (c)       quarter of each year, which is due no later
organization that previously was                              above, or members of their families, within      than July 31 of each calendar year.
recognized as being exempt under section                      the meaning of section 4946(d).
                                                                                                               Form 926, Return by a U.S. Transferor
501(a) as an organization described in                            8. An organization is controlled by a        of Property to a Foreign Corporation.
section 501(c)(3), but has lost that                          foundation or by one or more disqualified        U.S. persons (including domestic
recognition. Though it may operate as a                       persons with respect to the foundation if        corporations and trusts) must file Form
taxable entity, it will continue to be treated                any of these persons may, by combining           926 to report certain transfers of tangible
as a private foundation until that status is                  their votes or positions of authority, require   or intangible property to a foreign
terminated under section 507.                                 the organization to make an expenditure          corporation, as required by section 6038B.
    4. A private operating foundation is an                   or prevent the organization from making
organization that is described under                          an expenditure, regardless of the method         Form 965, Inclusion of Deferred For-
section 4942(j)(3) or (5). It means any                       of control. “Control” is determined              eign Income Upon Transition to Partic-
private foundation that spends at least                       regardless of how the foundation requires        ipation Exemption System. Used by
85% of the smaller of its adjusted net                        the contribution to be used.                     U.S. persons owning (directly or indirectly)
income (figured in Part I) or its minimum                                                                      interests in certain specific foreign
investment return (figured in Part X)                         D. Other Forms You May                           corporations to report amounts related to
                                                                                                               section 965(a) inclusions and section
directly for the active conduct of the                        Need To File                                     965(c) deductions.
exempt purpose or functions for which it is
organized and operated and that also
                                                              • Form W-2, Wage and Tax Statement.
                                                              • Form W-3, Transmittal of Wage and              Form 965-B, Corporate and Real Es-
meets the assets test, the endowment                                                                           tate Investment Trust (REIT) Report of
                                                              Tax Statements.
test, or the support test (discussed in Part                                                                   Net 965 Tax Liability and Electing REIT
XIV). Also, certain elderly care facilities
                                                              • Form 940, Employer's Annual Federal
                                                              Unemployment (FUTA) Tax Return                   Report of 965 Amounts. Used by U.S.
created before 1970 are treated as private                                                                     corporations and REITs that own (directly
                                                              (4947(a)(1) trusts and taxable private
operating foundations.                                                                                         or indirectly) interests in certain specified
                                                              foundations may need to file).
    5. A nonoperating private foundation                      • Form 941, Employer's QUARTERLY                 foreign corporations to report their net
is a private foundation that isn't a private                  Federal Tax Return.                              section 965 tax liabilities and related
operating foundation. These often are                                                                          amounts.
referred to as “grant-making foundations.”                       These forms are used to report social
                                                                                                               Form 990-T, Exempt Organization
                                                              security, Medicare, and income taxes
    6. A foundation manager is an officer,                                                                     Business Income Tax Return. Every
                                                              withheld by an employer and social
director, or trustee of a foundation, or an                                                                    organization exempt from income tax
                                                              security and Medicare taxes paid by an
individual who has powers similar to those                                                                     under section 501(a) with total gross
                                                              employer.
of officers, directors, or trustees. In the                                                                    income of $1,000 or more from all trades
case of any act or failure to act, the term                                                                    or businesses unrelated to the

                                                                                   -4-                                        Form 990-PF Instructions
organization's exempt purpose, including       vehicle that has a claimed value of more       change in either an overall method of
any addition to UBTI attributable to           than $500.                                     accounting or the accounting treatment of
expenses for a qualified transportation                                                       any item, in situations not covered by Rev.
                                               Form 1099 series. Information returns to
fringe required by section 512 (a)(7), must                                                   Proc. 85-58, 1985-18 I.R.B. 5.
                                               report acquisitions or abandonments of
file Form 990-T. The form is also used by
                                               secured property, proceeds from broker         Form 3520, Annual Return To Report
tax-exempt organizations to report other
                                               and barter exchange transactions,              Transactions With Foreign Trusts and
additional taxes, including the additional
                                               cancellation of debt, dividends and            Receipt of Certain Foreign Gifts. Used
tax figured in Part IV of Form 8621, Return
                                               distributions, certain government and state    by U.S. persons to report certain
by a Shareholder of a Passive Foreign
                                               qualified tuition program payments,            transactions with foreign trusts, ownership
Investment Company or Qualified Electing
                                               taxable distributions from cooperatives,       of foreign trusts under the grantor trust
Fund.
                                               interest payments, payments of long-term       rules of sections 671–679, and receipt of
Form 990-W, Estimated Tax on Unrela-           care and accelerated death benefits,           certain large gifts or bequests from certain
ted Business Taxable Income for                miscellaneous income payments,                 foreign persons.
Tax-Exempt Organizations. Use of this          distributions from an HSA, Archer MSA or
                                                                                              Form 4506, Request for Copy of Tax
form is optional. It is provided only to aid   Medicare Advantage MSA, original issue
                                                                                              Return. Used by the organization or
you in determining your tax liability. You     discount, distributions from pensions,
                                                                                              designated third party to get a complete
must use electronic funds transfer to make     annuities, retirement or profit-sharing
                                                                                              copy of the organization's return.
all depository tax deposits. See Electronic    plans, IRAs, insurance contracts, etc., and
Deposit Requirement, later.                    proceeds from real estate transactions.        Form 4506-A, Request for Public In-
                                               Also, use certain of these returns to report   spection or Copy of Exempt or Politi-
Form 1023, Application for Recogni-
                                               amounts that were received as a nominee        cal Organization IRS Form. Used to
tion of Exemption Under Section
                                               on behalf of another person.                   inspect or request a copy of an exempt or
501(c)(3) of the Internal Revenue
                                                                                              political organization's return, report,
Code. This form for recognition of             Form 1120, U.S. Corporation Income
                                                                                              notice, or exemption application by the
exemption from federal income tax under        Tax Return. Filed by nonexempt taxable
                                                                                              public or the organization.
section 501(c)(3) must be used by private      private foundations that have taxable
foundations that don't qualify to use Form     income under the income tax provisions         Form 4720, Return of Certain Excise
1023-EZ or that are also requesting            (subtitle A of the Code). Form 990-PF is       Taxes Under Chapters 41 and 42 of the
advance approval of individual grant           also filed by these taxable foundations.       Internal Revenue Code. Is primarily
procedures or recognition as an operating                                                     used to determine the excise taxes
                                               Form 1120-POL, U.S. Income Tax Re-
foundation. Form 8940 may also be used                                                        imposed on:
                                               turn for Certain Political Organiza-
for requesting advance approval of
                                               tions. Section 501(c) organizations must
                                                                                               • Acts of self-dealing between private
individual grant procedures or recognition                                                    foundations and disqualified persons,
                                               file Form 1120-POL if they are treated as
as an operating foundation.
                                               having political organization taxable
                                                                                               • Failure to distribute income,
Form 1023-EZ, Streamlined Applica-             income under section 527(f)(1).
                                                                                               • Excess business holdings,
tion for Recognition of Exemption Un-
                                                                                               • Investments that jeopardize a
                                               Form 1128, Application To Adopt,               foundation's charitable purposes,
der Section 501(c)(3) of the Internal
Revenue Code. Certain small private
                                               Change, or Retain a Tax Year. Form              • Making political or other noncharitable
                                               1128 is used to request approval from the      expenditures,
foundations may apply for recognition of
exemption under section 501(c)(3) using
                                               IRS to change a tax year or to adopt or         • Prohibited tax shelter transactions, and
this form instead of Form 1023.
                                               retain a certain tax year.                      • Excess executive compensation.
                                               Form 2220, Underpayment of Estima-             Form 5471, Information Return of U.S.
Form 1041, U.S. Income Tax Return for
                                               ted Tax by Corporations. Form 2220 is          Persons for Certain Foreign Corpora-
Estates and Trusts. Required of section
                                               used by corporations and trusts filing Form    tions. Used by certain U.S. persons that
4947(a)(1) nonexempt charitable trusts
                                               990-PF to see if the foundation owes a         are shareholders in certain foreign
that also file Form 990-PF. However, if the
                                               penalty and to figure the amount of the        corporations, in compliance with sections
trust doesn't have any taxable income
                                               penalty. Generally, the foundation isn't       6038 and 6046.
under the income tax provisions (subtitle A
                                               required to file this form because the IRS
of the Code), it may use the filing of Form                                                   Form 5500, Annual Return/Report of
                                               can figure the amount of any penalty and
990-PF to satisfy its Form 1041 filing                                                        Employee Benefit Plan. Used to report
                                               bill the foundation for it. However,
requirement under section 6012. If this                                                       information concerning employee benefit
                                               complete and attach Form 2220 even if
condition is met, check the box on line 15,                                                   plans and Direct Filing Entities.
                                               the foundation doesn't owe the penalty if:
Part VII-A, of Form 990-PF and don't file
Form 1041.
                                                • The annualized income or the adjusted       Form 7004, Application for Automatic
                                               seasonal installment method is used; or        Extension of Time To File Certain Busi-
Form 1041-ES, Estimated Income Tax              • The foundation is a “large organization,”   ness Income Tax, Information, and
for Estates and Trusts. Used to make           (see O. Figuring and Paying Estimated          Other Returns. Nonexempt charitable
estimated tax payments.                        Tax, later) figuring its first required        trusts and taxable foundations use to
                                               installment based on the prior year's tax.     request extension of time to file income
Form 1096, Annual Summary and
                                               If Form 2220 is attached, check the box on     tax returns.
Transmittal of U.S. Information Re-
                                               Form 990-PF, Part VI, line 8, and enter the
turns. Used to transmit Forms 1097,                                                           Form 8282, Donee Information Return.
                                               amount of any penalty on this line.
1098, 1099, 3921, 3922, 5498, and W-2G                                                        Required of the donee of “charitable
to the IRS. Don’t use it to transmit           Form 2848, Power of Attorney and               deduction property” that sells, exchanges,
electronically.                                Declaration of Representative. Used to         or otherwise disposes of the property
                                               authorize an individual to represent you in    within 3 years after the date it received the
Form 1098 series. Information returns to
                                               matters before the IRS, such as the filing     property. Also required of any successor
report mortgage interest, student loan
                                               of Form 1023.                                  donee that disposes of charitable
interest, qualified tuition and related
                                                                                              deduction property within 3 years after the
expenses, and a contribution of a qualified    Form 3115, Application for Change in
                                                                                              date the donor gave the property to the
                                               Accounting Method. Used to request a
                                                                                              original donee. It doesn't matter who gave

Form 990-PF Instructions                                           -5-
the property to the successor donee. It       dispositions, and changes in foreign            • Pub. 15-A, Employer’s Supplemental
may have been the original donee or           partnership interests).                         Tax Guide (Fringe Benefits).
another successor donee.
                                              Form 8868, Application for Automatic
                                                                                              • Pub. 525, Taxable and Nontaxable
                                                                                              Income.
Form 8283, Noncash Charitable Contri-         Extension of Time To File an Exempt
butions. Donors must file Form 8283 to        Organization Return. Used by an
                                                                                              • Pub. 526, Charitable Contributions.
report information about certain noncash      exempt organization to request an
                                                                                              • Pub. 538, Accounting Periods and
                                                                                              Methods.
charitable contributions in order to          automatic extension of time to file its
substantiate a charitable deduction under     return.
                                                                                              • Pub. 557, Tax-Exempt Status for Your
                                                                                              Organization.
section 170. The donor may need to
obtain an acknowledgement by the donee
                                              Form 8870, Information Return for               • Pub. 561, Determining the Value of
                                              Transfers Associated With Certain Per-          Donated Property.
foundation in Part IV of Form 8283.
                                              sonal Benefit Contracts. Used to                • Pub. 583, Starting a Business and
Form 8275, Disclosure Statement.              identify those personal benefit contracts       Keeping Records.
Taxpayers and tax return preparers should     for which funds were transferred to the         • Pub. 598, Tax on Unrelated Business
attach this form to Form 990-PF to            organization, directly or indirectly, as well   Income of Exempt Organizations.
disclose items or positions (except those     as the transferors and beneficiaries of         • Pub. 892, How to Appeal an IRS
contrary to a regulation—see Form             those contracts.                                Decision on Tax-Exempt Status.
8275-R below) that aren't otherwise
                                              Form 8886, Reportable Transaction               • Pub. 946, How To Depreciate Property.
adequately disclosed on the tax return.
                                              Disclosure Statement. Used to disclose          • Pub. 966, Electronic Federal Tax
The disclosure is made to avoid parts of                                                      Payment System: A Guide to Getting
                                              information for each reportable transaction
the accuracy-related penalty imposed for                                                      Started.
                                              in which the organization participated,
disregard of rules or substantial
                                              including but not limited to a prohibited tax   • Pub. 1771, Charitable
understatement of tax. Form 8275 is also                                                      Contributions—Substantiation and
                                              shelter transaction. Exempt organizations
used for disclosures relating to preparer                                                     Disclosure Requirements.
                                              may also be required to file Form 8886-T
penalties for understatements due to
                                              in such case.                                   • Pub. 3079, Tax-Exempt Organizations
unrealistic positions or for willful or                                                       and Gaming.
reckless conduct.                             Form 8886-T, Disclosure by Tax-Ex-              • Pub. 3833, Disaster Relief, Providing
                                              empt Entity Regarding Prohibited Tax            Assistance Through Charitable
Form 8275-R, Regulation Disclosure
                                              Shelter Transaction. Used by an                 Organizations.
Statement. Use this form to disclose any
item on a tax return for which a position
                                              exempt organization to disclose that it was     • Pub. 4220, Applying for 501(c)(3)
                                              a party to a prohibited tax shelter             Tax-Exempt Status.
has been taken that is contrary to
Treasury regulations.
                                              transaction.                                    • Pub. 4221-PF, Compliance Guide for
                                                                                              501(c)(3) Private Foundations.
                                              Form 8899, Notice of Income From Do-
Form 8300, Report of Cash Payments
                                              nated Intellectual Property. Used to            • Pub. 4302, A Charity’s Guide to Vehicle
Over $10,000 Received in a Trade or                                                           Donations.
                                              report income from qualified intellectual
Business. Used to report cash amounts
                                              property.                                       • Pub. 4303, A Donor’s Guide to Vehicle
in excess of $10,000 received in a single                                                     Donations.
transaction (or in two or more related        Form 8940, Request for Miscellaneous            • Pub. 4386, Compliance
transactions) in the course of a trade or     Determination. Used by private                  Checks—Examination, Audit or
business (as defined in section 162).         foundations and nonexempt charitable            Compliance Check.
Form 8621, Information Return by a
                                              trusts to obtain certain determinations         • Pub. 4630, Exempt Organizations
                                              including advance approval of individual        Products and Services Catalog.
Shareholder of a Passive Foreign In-
                                              grant procedures (section 4945(g)),
vestment Company or Qualified Elect-
                                              advance approval of certain set-asides          Publications and forms are available at no
ing Fund. A U.S. person that is a direct or
                                              (section 4942(g)(2)), advance approval of       charge on the IRS website at IRS.gov/
indirect shareholder of a passive foreign
                                              voter registration activities (section          FormsPubs.
investment company (PFIC) may need to
                                              4945(f)), and termination of private
file. But see Notice 2014-28, 2014-18
I.R.B. 990, available at IRS.gov/irb/
                                              foundation status (section 507(b)(1)(B)).       F. Use of Form 990-PF To
2014-18_IRB/, with respect to tax-exempt      Form 8992, U.S. Shareholder Calcula-            Satisfy State Reporting
                                              tion of Global Intangible Low-Taxed In-
foundations.
                                              come (GILTI). Used to figure a U.S.
                                                                                              Requirements
Form 8821, Tax Information Authoriza-                                                         Some states and local government units
                                              shareholder’s GILTI under section 951A
tion. Used to authorize an individual or                                                      will accept a copy of Form 990-PF and
                                              and attached to Form 990-PF.
organization to inspect and/or receive your                                                   required attachments instead of all or part
confidential tax information on designated    FinCEN Form 114, Report of Foreign              of their own financial report forms.
matters.                                      Bank and Financial Accounts. Used by
                                              organizations formed or organized in or             If the organization plans to use Form
Form 8822-B, Change of Address or                                                             990-PF to satisfy state or local filing
                                              under the laws of the United States to
Responsible Party—Business. Used by                                                           requirements, such as those from state
                                              report a financial interest in or signature
taxpayers to notify the IRS of changes in                                                     charitable solicitation acts, note the
                                              authority over a foreign financial account if
business mailing address, business                                                            following.
                                              the aggregate value exceeds $10,000 at
location, or responsible party.
                                              any time during the calendar year.              Determine state filing requirements.
Form 8865, Return of U.S. Persons                                                             Consult the appropriate officials of all
With Respect to Certain Foreign Part-         E. Useful Publications                          states and other jurisdictions in which the
nerships. Used by U.S. persons to report      The following publications may be helpful       organization does business to determine
information required under section 6038       in preparing Form 990-PF or for other tax       their specific filing requirements. “Doing
(controlled foreign partnerships), section    compliance purposes.                            business” in a jurisdiction may include any
6038B (transfers to foreign partnerships),     • Pub. 15 (Circular E), Employer’s Tax         of the following.
or section 6046A (acquisitions,               Guide.


                                                                   -6-                                       Form 990-PF Instructions
• Soliciting contributions or grants by mail    • The state in which the foundation's                In general, to change its accounting
or otherwise from individuals, businesses,      principal office is located; and                   period, the organization must file Form
or other charitable organizations.               • The state in which the foundation was           990-PF by the due date for the short
 • Conducting programs.                         incorporated or created.                           period resulting from the change. At the
 • Having employees within that                    A copy of the annual return must be             top of this short period return, write
jurisdiction.                                   sent to the Attorney General at the same           “Change of Accounting Period.”
 • Maintaining a checking account or            time the annual return is filed with the IRS.
owning or renting property there.                                                                     If the organization has previously
                                                Other requirements. If the Attorney                changed its accounting period within the
Monetary tests may differ. Some or all          General or other appropriate state official        10-calendar-year period that includes the
of the dollar limitations that apply to Form    of any state requests a copy of the annual         beginning of the short period resulting
990-PF when filed with the IRS may not          return, the foundation managers must               from the current change in accounting
apply when using Form 990-PF instead of         comply with the request.                           period, and it had a Form 990-PF filing
state or local report forms. IRS dollar                                                            requirement at any time during that
limitations that may not meet some state        Exceptions. These rules don't apply to             10-year period, it must also file Form
requirements are the $5,000 total assets        any foreign foundation that, from the date         1128, Application for Change in
minimum that requires completion of Part        of its creation, has received at least 85%         Accounting Method, with the short-period
II, column (c), and Part XV; and the            of its support (excluding gross investment         return. See Rev. Proc. 85-58, 1985-2 C.B.
$50,000 minimum for listing the highest         income) from sources outside the United            740, 1985-18 I.R.B. 5.
paid employees and for listing                  States. See General Instruction S, later,
                                                for other exceptions that affect this type of
professional fees in Part VIII.
                                                organization.                                      I. Accounting Methods
Additional information may be re-                                                                  Generally, you should report the financial
quired. State and local filing                  Coordination with state reporting re-              information requested on the basis of the
requirements may require attaching to           quirements. If the foundation managers             accounting method the foundation
Form 990-PF one or more of the following.       submit a copy of Form 990-PF and Form              regularly uses to keep its books and
 • Additional financial statements, such as     4720 (if applicable) to a state Attorney           records.
a complete analysis of functional               General to satisfy a state reporting
expenses or a statement of changes in net       requirement, they don't have to furnish a          Exception. Complete Part I, column (d),
assets.                                         second copy to that Attorney General to            on the cash receipts and disbursements
                                                comply with the Internal Revenue Code              method of accounting.
 • Notes to financial statements.
 • Additional financial schedules.              requirements discussed in this section.
 • A report on the financial statements by          If there is a state reporting requirement      J. When, Where, and How
an independent accountant.                      to file a copy of Form 990-PF with a state         To File
 • Answers to additional questions and          official other than the Attorney General (for
other information.                              instance, the Secretary of State), then the        This return must be filed by the 15th day of
    Each jurisdiction may require the           foundation managers must also send a               the 5th month following the close of the
additional material to be presented on          copy of the Form 990-PF and Form 4720              foundation's tax year. If the regular due
forms they provide. The additional              (if applicable) to the Attorney General of         date falls on a Saturday, Sunday, or legal
material doesn't have to be submitted with      that state.                                        holiday, file by the next business day. If
the Form 990-PF filed with the IRS.                                                                the return is filed late, see M. Penalty for
    If required information isn't provided to   H. Accounting Period                               Failure To File Timely, Completely, or
a state, the organization may be asked by       File the 2018 return for the calendar year         Correctly, later.
the state to provide it or to submit an         2018 or fiscal year beginning in 2018. If
                                                                                                      In case of a complete liquidation,
amended return even if the Form 990-PF          the return is for a fiscal year, fill in the
                                                                                                   dissolution, or termination, file the return
is accepted by the IRS as complete.             beginning and ending dates of the tax year
                                                                                                   by the 15th day of the 5th month following
                                                in the spaces at the top of the return.
Amended returns. If the organization                                                               complete liquidation, dissolution, or
submits supplemental information or files           The return must be filed on the basis of       termination.
an amended Form 990-PF with the IRS, it         the established annual accounting period
must also submit a copy of the information      of the organization. If the organization has          To file the return, mail or deliver it to:
or amended return to any state with which       no established accounting period, the
                                                return should be on the calendar-year                  Department of the Treasury
it filed a copy of Form 990-PF.
                                                basis.                                                 Internal Revenue Service Center
Method of accounting. Many states                                                                      Ogden, UT 84201-0027
                                                   For an initial or final return or for a short
require that all amounts be reported based
                                                tax year resulting from a change in
on the accrual method of accounting.                                                                   If the organization's principal business,
                                                accounting period, the 2018 form may
Time for filing may differ. The time for        also be used as the return for a short             office, or agency is located in a foreign
filing Form 990-PF with the IRS may differ      period (less than 12 months) ending                country or U.S. possession, mail or deliver
from the time for filing state reports.         November 30, 2018, or earlier. The 2018            the return to:
                                                form may also be used for a short period
                                                                                                       Internal Revenue Service Center
G. Furnishing Copies of                         beginning after November 30, 2018, and
                                                                                                       P.O. Box 409101
                                                ending before December 31, 2019 (not on
Form 990-PF to State                            or after December 31, 2019). When doing
                                                                                                       Ogden, UT 84409
Officials                                       so, provide the information for designated
The foundation managers must furnish a          years listed on the return, other than the         Private delivery services (PDSs). You
copy of Form 990-PF and Form 4720 (if           tax year being reported, as if they were           can use certain PDSs designated by the
applicable) to the Attorney General of:         updated on the 2018 form. For example,             IRS to meet the “timely mailing as timely
• Each state required to be listed in Part      provide the information in Part V, line 1, for     filing/paying” rule for tax returns. Go to
VII-A, line 8a;                                 the tax years 2014–2018, rather than for           IRS.gov/PDS for the current list of
                                                the printed years, 2013–2017.                      designated services.

Form 990-PF Instructions                                              -7-
The PDSs can tell you how to get             previously filed return. You can download           annual Form 990, 990-EZ, 990-PF, or
written proof of the mailing date.              items from the IRS website at IRS.gov/              990-N e-Postcard with the IRS. If an
   For the IRS mailing address to use if        FormsPubs.                                          organization fails to file an annual return or
you’re using a PDS, go to IRS.gov/                                                                  notice for 3 consecutive years, it will
PDSStreetAddresses.                             M. Penalty for Failure To                           automatically lose its tax-exempt status. A
                                                                                                    private foundation that loses its exemption
        PDSs can't deliver items to P.O.        File Timely, Completely, or                         must file income tax returns and pay
  !     boxes. You must use the U.S.            Correctly                                           income taxes and must file Form 990-PF
CAUTION Postal Service to mail any item to
                                                To avoid filing an incomplete return or             as a taxable private foundation. For
an IRS P.O. box address.                        having to respond to requests for missing           details, go to IRS.gov/EO.
                                                information, see B. Which Parts To
Electronic Filing                               Complete, earlier.                                  N. Penalties for Not Paying
Generally, a private foundation may file its    Against the organization. If an                     Tax on Time
Form 990-PF by mail, by private delivery,       organization doesn't file timely and                There is a penalty for not paying tax when
or electronically. However, if the              completely, or doesn't furnish the correct          due (section 6651). The penalty generally
foundation files at least 250 returns during    information, it must pay $20 for each day           is 1/2 of 1% of the unpaid tax for each
the calendar year, it must file Form 990-PF     the failure continues ($100 a day if it is a        month or part of a month the tax remains
electronically. If the foundation must file a   large organization), unless it can show             unpaid, not to exceed 25% of the unpaid
return electronically but doesn't, the          that the failure was due to reasonable              tax. If there was reasonable cause for not
organization is considered to have not          cause. The maximum penalty for each                 paying the tax on time, the penalty can be
filed its return. See Regulations section       return won't exceed the smaller of $10,000          waived. However, interest is charged on
301.6033-4 for more information. For            ($52,000 for a large organization) or 5% of         any tax not paid on time, at the rate
additional information on the electronic        the gross receipts of the organization for          provided by section 6621.
filing requirement, visit IRS.gov/EFile.        the year.
                                                                                                    Estimated tax penalty. The section
        The IRS may waive the                      Large organization. A large                      6655 penalty for failure to pay estimated
 TIP requirements to file electronically        organization is one that has gross receipts         tax applies to the tax on net investment
        in cases of undue hardship. For         exceeding $1,046,500 for the tax year.              income of domestic private foundations
more information on filing a waiver, see                                                            and section 4947(a)(1) nonexempt
Notice 2010-13, 2010-4 I.R.B. 327,                 Gross receipts. Gross receipts
                                                                                                    charitable trusts. The penalty also applies
available at IRS.gov/irb/2010-04_IRB/           means the gross amount received during
                                                                                                    to any tax on unrelated business income
ar14.html.                                      the foundation's annual accounting period
                                                                                                    of a private foundation. Generally, if a
                                                from all sources without reduction for any
                                                                                                    private foundation's tax liability is $500 or
                                                costs or expenses.
K. Extension of Time To                            To figure the foundation's gross
                                                                                                    more and it didn't make the required
                                                                                                    payments on time, then it is subject to the
File                                            receipts, complete the following.                   penalty.
A foundation generally uses Form 8868 to        1. Part I, line 12, column (a).
                                                                                                       For more details, see the discussion of
request an automatic extension of time to       2. Add lines 6b and 10b.
                                                                                                    Form 2220, Underpayment of Estimated
file its return.                                3. Subtract line 6a.
                                                                                                    Tax by Corporations, in D. Other Forms
                                                Against the responsible person. The                 You May Need To File, earlier.
    An automatic extension will be granted
                                                IRS will make written demand that the                  A private foundation is also subject to
if you properly complete this form, file it,
                                                delinquent return be filed or the                   the section 6656 penalty for failure to
and pay any balance due by the due date
                                                information furnished within a reasonable           deposit employment taxes when due. See
for Form 990-PF.
                                                time after the mailing of the notice of the         sections 11 and 12 of Pub. 15 (Circular E),
                                                demand. The person failing to comply with
L. Amended Return                               the demand on or before the date
                                                                                                    Employer’s Tax Guide, for details.
To change the organization's return for
any year, file an amended return, including
                                                specified will have to pay $10 for each day
                                                the failure continues, unless there is
                                                                                                    O. Figuring and Paying
attachments, with the correct information.      reasonable cause. The maximum penalty               Estimated Tax
The amended return must provide all the         imposed on all persons for any one return           A domestic exempt private foundation, a
information required by the form and            is $5,000. If more than one person is liable        domestic taxable private foundation, or a
instructions, not just the new or corrected     for any failures, all such persons are jointly      nonexempt charitable trust treated as a
information. Check “Amended return” in          and severally liable for such failures. See         private foundation must make estimated
Item G at the top of page 1 of the form.        section 6652(c) for further information.            tax payments for the excise tax based on
See the instructions for Part VI, line 9,                                                           investment income if it can expect its
later.                                          Other penalties. Because this return
                                                                                                    estimated tax (section 4940 tax minus
                                                also satisfies the filing requirements of a
                                                                                                    allowable credits) to be $500 or more. The
   If the organization files an amended         tax return under section 6011 for the tax
                                                                                                    number of installment payments it must
return to claim a refund of tax paid under      on investment income imposed by section
                                                                                                    make under the depository method is
section 4940 or 4948, it must file the          4940 (or 4948 if an exempt foreign
                                                                                                    determined at the time during the year that
amended return within 3 years after the         organization), the penalties imposed by
                                                                                                    it first meets this requirement. For
date the original return was filed, or within   section 6651 for not filing a return (without
                                                                                                    calendar-year taxpayers, the first deposit
2 years from the date the tax was paid,         reasonable cause) also apply.
                                                                                                    of estimated taxes for a year generally
whichever date is later.                            There are also criminal penalties for           should be made by May 15 of the year.
State reporting requirements. See               willful failure to file and for filing fraudulent
                                                returns and statements. See sections                    Although Form 990-W is used primarily
Amended returns under General
                                                7203, 7206, and 7207.                               to figure the installment payments of
Instruction F, earlier.
                                                                                                    unrelated business income tax, it is also
                                                    Most tax-exempt organizations, other
Need a copy of an old return or form?                                                               used to determine the timing and amounts
                                                than churches, are required to file an
Use Form 4506 to obtain a copy of a                                                                 of installment payments of the section

                                                                       -8-                                          Form 990-PF Instructions
4940 tax based on investment income.           Started. See below for an exception to this       • Any statement or other supporting
Figure separately any required deposits of     rule for small foundations.                       document submitted in support of the
excise tax based on investment income                                                            application, and
                                               Depositing on time. For deposits made
and unrelated business income tax.
                                               by EFTPS to be on time, the foundation
                                                                                                 • Any letter or other document issued by
                                                                                                 the IRS concerning the application.
    To figure the estimated tax for the        generally must submit the transaction at
excise tax based on investment income,         least 1 business day before the date the             An application for tax exemption
apply the rules of Part VI to your estimated   deposit is due. See Pub. 15 (Circular E)          doesn't include:
amounts for that part. Enter the tax you       for information on a same-day payment             • Any application for tax exemption filed
figured on line 10a of Form 990-W.             option under some circumstances.                  before July 15, 1987, unless the private
                                                                                                 foundation filing the application had a
    The Form 990-W line items and              Special Payment Option for                        copy of the application on July 15, 1987;
instructions for large organizations also      Small Foundations                                 or
apply to private foundations. For purposes     A private foundation may pay its section          • Any material that isn't available for
of paying the estimated tax on net             4940 tax by check or money order,                 public inspection under section 6104.
investment income, a “large organization”      payable to “United States Treasury,” with
is one that had net investment income of                                                         Who Must Make the Annual
                                               the Form 990-PF or Form 8868,
$1 million or more for any of the 3 tax        Application for Automatic Extension of
                                                                                                 Returns and Exemption
years immediately preceding the tax year       Time To File an Exempt Organization               Application Available for Public
involved.                                      Return, if it meets all of the following          Inspection?
Penalty. A foundation that doesn't pay         requirements.                                     The foundation's Form 990-PF, 990-T,
the proper estimated tax when due may             1. The tax based on investment                 and exemption application must be made
be subject to the estimated tax penalty for    income shown on Part VI, line 5, of Form          available to the public by the foundation
the period of the underpayment. See            990-PF is less than $500.                         and the IRS.
sections 6655(b) and (d) and the Form             2. If Form 8868 is used, the amount
2220 instructions for further information.                                                       How Does a Private Foundation
                                               entered on line 3a must be less than $500
    With regard to figuring and paying         and it must be the full balance due.              Make Its Annual Returns and
employment taxes, see Pub. 15 (Circular                                                          Exemption Application
E).                                                Be sure to write “2018 Form 990-PF”
                                               and the foundation's name, address, and           Available for Public Inspection?
Special Rules                                  employer identification number (EIN) on           A private foundation must make its annual
                                               its check or money order.                         returns and exemption application
Section 4947(a)(1) nonexempt charita-                                                            available in three ways.
ble trusts. Form 1041-ES should be                       Foreign organizations should see
used to pay any estimated tax on income
                                                                                                 • By office visitation.
                                                 !       the instructions for Part VI, line 9.
subject to tax under section 1. Form
                                                                                                 • By providing copies.
                                                                                                 • By internet posting.
                                               CAUTION

1041-ES also contains the estimated tax
rules for paying the tax on that income.       Q. Public Inspection                              Public Inspection by Office
Taxable private foundations. Form              Requirements                                      Visitation
1120-W, Estimated Tax for Corporations,        A private foundation must make its annual
should be used to figure any estimated tax     returns and exemption application                 A private foundation must make its annual
on income subject to tax under section 11.     available for public inspection.                  returns and exemption application
Form 1120-W contains the estimated tax                                                           available for public inspection without
rules for paying the tax on that income.       Definitions                                       charge at its principal, regional, and
                                                                                                 district offices during regular business
                                               Annual returns. Annual returns include
P. Tax Payment Methods                         an exact copy of the following documents
                                                                                                 hours.
for Domestic Private                           as filed with the IRS.                            Conditions that may be set for public
Foundations                                    • Form 990-PF, including all schedules,           inspection at the office. A private
                                               attachments, and supporting documents,            foundation:
Whether the foundation uses the                and any amended return that is 3 or fewer          • May have an employee present,
depository method of tax payment or the        years old from:                                    • Must allow the individual conducting the
special option for small foundations, it                                                         inspection to take notes freely during the
must pay the tax due (see Part VI) in full         1. The date the original return was
                                               filed or required to be filed, or                 inspection, and
by the 15th day of the 5th month after the                                                        • Must allow an individual to make
end of its tax year.                               2. The date the return was required to        photocopies of documents at no charge
                                               be filed.                                         but only if the individual brings
Electronic Deposit                             • Form 990-T, if it was used to report any        photocopying equipment to the place of
Requirement                                    tax on unrelated business income.                 inspection.
The foundation must deposit all depository     Exemption application. An application
taxes (such as employment tax, excise                                                            Determining if a site is a regional or
                                               for tax exemption includes (except as             district office. A regional or district office
tax, and unrelated business income tax)        described later):
electronically using electronic funds                                                            is any office of a private foundation, other
                                               • Any prescribed application form (such           than its principal office, that has paid
transfer. Generally, such transfers are        as Form 1023 or Form 1024),
made using the Electronic Federal Tax                                                            employees whose total number of paid
                                               • Any letter application where a form isn't       hours a week are normally 120 hours or
Payment System (EFTPS). For more               required,
information about EFTPS or to enroll in                                                          more. Include the hours worked by
                                               • All documents and statements the IRS            part-time (as well as full-time) employees
EFTPS, visit the EFTPS website at              requires an applicant to file with the form
EFTPS.gov, or call 800-555-4477. You                                                             in making that determination.
                                               or letter application,
can also get Pub. 966, Electronic Federal
Tax Payment System: A Guide To Getting

Form 990-PF Instructions                                              -9-
You can also read
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