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2016

Department of the Treasury

Internal Revenue Service

Instructions for Schedule L

(Form 990 or 990-EZ)

Transactions With Interested Persons

Who Must File

1. For Form 990 filers, a person

Section references are to the Internal Revenue

Code unless otherwise noted.

required to be listed in Form 990, Part VII,

The chart at the bottom of this page

Section A as a current or former officer,

Future Developments

provides which organizations must

director, trustee, or key employee, and

complete all or a part of Schedule L and

for Form 990-EZ filers, a current officer,

must attach Schedule L to Form 990 or

For the latest information about

director, trustee, or key employee required

990-EZ.

developments related to Form 990 and its

to be listed on Form 990-EZ, Part IV. For

instructions, such as legislation enacted

purposes of reporting management

Note. The organization should answer

after they were published, go to

company transactions in Part IV, however,

“Yes” to Form 990, Part IV, lines 28a, 28b,

a former officer, director, trustee, or key

or 28c, only if the party to the transaction

employee of the organization within the

was an “interested person” as defined in

General Instructions

last five tax years is treated as an

these instructions, and the threshold

Note. Terms in bold are defined in the

interested person whether or not required

amounts described in the specific

Glossary of the Instructions for Form 990.

to be so listed.

instructions to Schedule L, Part IV (later)

2. The creator or founder of the

are met.

Purpose of Schedule

organization, including the sponsoring

If an organization isn't required to file Form

organizations of a Voluntary Employees'

Schedule L (Form 990 or 990-EZ) is used

990 or 990-EZ but chooses to do so, it

Beneficiary Association (VEBA).

by an organization that files Form 990 or

must file a complete return and provide all

990-EZ to provide information on certain

of the information requested, including the

3. A substantial contributor. For

financial transactions or arrangements

required schedules.

purposes of Schedule L, Parts II–IV, a

between the organization and

substantial contributor is an individual or

Specific Instructions

disqualified person(s) under section

organization that made contributions

4958 or other interested persons.

during the tax year in the aggregate of at

Schedule L is also used to determine

For Parts I, II, and III, report all

least $5,000 and is required to be reported

whether a member of the organization's

transactions regardless of amount. Part IV

by name in Schedule B (Form 990,

governing body is an independent

instructions provide individual and total

990-EZ, or 990-PF), Schedule of

member for purposes of Form 990, Part

reporting thresholds below which reporting

Contributors, for the organization’s tax

VI, line 1b.

isn't required for an interested person.

year. A substantial contributor may include

an employer that contributes to a VEBA.

Supplemental information. Parts I–IV

Each reportable transaction is to be

can be duplicated if additional space is

4. For purposes of Part III, a member

reported in only one part of Schedule L, as

needed. Also, Part V may be used to

of the organization’s grant selection

described below.

explain a transaction or to provide

committee.

Interested persons. For purposes of

additional information.

5. A family member of any individual

Part I, an interested person is a

described above.

disqualified person under section 4958.

6. A 35% controlled entity of one or

For purposes of Parts II–IV, an interested

more individuals and/or organizations

person is one of the following:

described above.

7. For purposes of Part III, an

Type of filer

IF you answer “Yes” to

THEN you must

. . . .

employee (or child of an employee) of a

complete

. . . . . . . . . . .

substantial contributor or of a 35%

Section 501(c)(3), 501(c)(4), or

Form 990, Part IV, line 25a or 25b

Schedule L, Part I.

controlled entity of such person, but only if

501(c)(29) organization

(regarding excess benefit

the employee (or child of an employee)

transactions)

received the grant or assistance by the

direction or advice of the substantial

Section 501(c)(3), 501(c)(4), or

Form 990-EZ, Part V, line 40b

Schedule L, Part I.

501(c)(29) organization

(regarding excess benefit

contributor or designee or of the 35%

transactions)

controlled entity, or under a program

funded by the substantial contributor that

All organizations

Form 990, Part IV, line 26 (regarding

Schedule L, Part II.

was intended primarily to benefit such

loans)

employees (or their children).

All organizations

Form 990-EZ, Part V, line 38a

Schedule L, Part II.

(regarding loans)

Refer to the specific instructions

under each Part for information on

All organizations

Form 990, Part IV, line 27 (regarding

Schedule L, Part III.

TIP

how to report substantial

grants)

contributors or those related to substantial

All organizations

Form 990, Part IV, line 28a, 28b, or

Schedule L, Part IV.

contributors.

28c (regarding business

transactions)

An interested person for purposes of

Parts II–IV does not include a section

Nov 18, 2016

Cat. No. 51522J

Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2016

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