A Simple Guide To Completing IRS Form 990-T
Exempt organizations are required to file Form 990 annually to report information about their revenue, expenses, assets, liabilities, programs and services, and governing officers.
In addition to this, some nonprofits and private foundations need to report their unrelated business taxable income to the IRS. This information is reported through Form 990-T, Exempt Organization Business Income Tax Return (and Proxy Tax Under Section 6033(e)).
Although submitting these forms can be time-consuming, it is a must for maintaining IRS compliance with your organization.
Now that the IRS mandates electronic filing for 990 series forms choosing a trusted e-filing service such as ExpressTaxExempt will ensure your organization’s returns are filed accurately and on time. With ExpressTaxExempt, completing IRS Form 990-T is simple and straightforward, and our e-filing process is safe, secure, and accurate.
Follow these helpful steps to complete Form 990-T with ease:
Necessary Information
Before you jump right into filing your Form 990-T, it will be helpful to gather all of the necessary information you will need to complete your form. Gathering this information beforehand will ensure a quick filing and reduce the risk of errors.
The following information is required to file Form 990-T:
- Your organization’s name, EIN, address, and phone number
- Relevant information on any address changes, name changes, or amended returns.
- Group exemption number.
- Your organization’s tax-exempt status
- If you are only filing Form 990-T to claim a credit from Form 8941 and/or to claim a refund shown on Form 2439, be sure to provide the relevant details.
- Form of organization
- The fair market value of all assets at the end of the year.
- Schedule A details attached with Form 990-T
Form 990-T Breakdown
Once you’ve gathered the necessary information, you can begin filling out your form using our direct form-based entry. Form 990-T is divided into five parts. Within these 5 sections, organizations must report:
- Unrelated Business Income
- Unrelated Business Income Tax Liability
- Proxy Tax Liability
- Unrelated Business Income Tax on Reinsurance Entities
Organizations can also use Form 990-T to claim a refund of income tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT) on an undistributed long-term capital gain. They may also request a credit for certain federal excise taxes paid or for small employer health insurance premiums paid.
Here is a quick overview of the different Form 990-T instruction sections:
Part I – Total Unrelated Business Taxable Income
Part I of Form 990-T consists of lines 1-11. In this section, you will be required to provide information about your organization’s business income.
The business income values you include in these lines will be determined by the Schedule’s A you complete. At least one Schedule A must be present in your return. With ExpressTaxExempt, clients can attach multiple Schedule’s A if they participate in more than one unrelated trade or business.
Part II – Tax Computation
Part II consists of lines 1-7 and requires information about your organization’s taxable income.
Part III – Tax and Payments
In part 3, you will need to provide information about the tax amount your organization owes to the IRS. There are several subsections within each line of part III, so it’s important to read this section carefully.
Part IV – Statements Regarding Certain Activities and Other Information
Lines 1-4 of part IV require information on your organization’s various activities and relevant changes made for the tax year. In doing so, you will answer whether or not your organization had a financial account in a foreign country or if your organization completed any transactions with foreign trusts or received certain foreign gifts. You should also report any tax-exempt interest your organization received or accrued during the tax year, as well as any changes to your organization’s accounting method.
Part V – Supplemental Information
Part 5 of 990-T requires organizations to respond to a series of questions. In this section, you will need you to explain your organization’s operations, and responses to various questions asked in previous parts of Form 990-T.
Visit, https://www.expresstaxexempt.com/form-990-t/form-990-t-instructions/ to find line-by-line instructions for filing form 990-T.
Once each section of Form 990-T has been completed, your last step is to sign your form! The return must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or by any other corporate officer (such as a tax officer) authorized to sign. In addition, receivers, trustees, or assignees must also sign and date any return filed on behalf of the organization.
Review and Transmit
You’re almost done! Once you enter all the required information, ExpressTaxExempt will check your return for mistakes. If we find any errors, you’ll be able to correct them quickly. It’s important to review your form thoroughly to ensure all the information you provided is correct.
After reviewing your form and making any necessary corrections, you are ready to transmit it to the IRS!
ExpressTaxExempt
ExpressTaxExempt will provide you with these step-by-step instructions when filing Form 990-T to ensure your filing process is quick and straightforward.
As a trusted IRS-Authorized e-filing provider, ExpressTaxExempt provides its clients with a secure, accurate, and timely e-filing process.
When filing, clients will receive access to internal error checks, instant notifications on their return’s status, and dedicated live customer support. In just 5 simple steps, you can e-file Form 990-T with ExpressTaxExempt and keep your organization in good standing with the IRS.
Learn more here: https://www.expresstaxexempt.com/e-file-form-990-t/
