which you answered “Yes,” to Form
Any other period the IRS determines
organization in a financial position not
990-PF, Part VII-B, question 4a or b, or
worse than that in which it would be if
is reasonable and necessary to correct
Form 5227, Part VI-B, question 78a or b.
the disqualified person had been
the taxable event.
dealing under the highest fiduciary
The taxable event will be treated as
Amended Return
standards.
occurring:
To correct a previously filed Form 4720
For the tax on failure to distribute
If, when the return is filed, the
(including the reporting of additional
income, on the first day of the tax year
foundation, entity, managers,
excise taxes discovered after the
for which there was a failure to distribute
self-dealers, disqualified persons,
original Form 4720 filing), use the same
income,
donors, donor advisors, or related
year form as the form you are
For the tax on excess business
persons have corrected any acts or
correcting, and:
holdings, on the first day on which there
transactions resulting in liability for tax
Write “Amended Return,” at the top of
were excess business holdings, or
under Chapter 42, answer “Yes,” to
page 1.
In any other case, on the date the
question B and give the following
Complete the entire return (not just
event occurred.
information separately for each
the part that changed) following the form
correction:
Generally, the term “correction” has
and instructions for the amended year.
Schedule and item number of the act
the following meanings.
Include a statement that identifies the
or transaction that has been corrected,
1. Section 4941 (Schedule A)
lines and amounts being changed and
A description of the act or transaction
Undoing the transaction to the extent
the reason for each change.
that resulted in the tax,
possible, but in any case placing the
Write the entity's name and EIN at the
A detailed description of the
private foundation in a financial position
top of each page of the statement.
correction made,
not worse than that in which it would be
The amount of any political
If the amended return is claiming a
if the disqualified person were dealing
expenditure recovered,
refund or requesting an abatement,
under the highest fiduciary standards.
Description of safeguards to prevent
write “Claim for Refund” or “Request for
2. Section 4942 (Schedule B)
future political expenditures, and
Abatement,” whichever is applicable,
Making sufficient qualifying distributions
The date of correction.
near the top of the statement discussed
to compensate for deficient qualifying
above.
For any acts or transactions the
distributions for a prior tax year.
foundation, entity, managers,
3. Section 4943 (Schedule C)
Note. If you are claiming a refund or
self-dealers, disqualified persons,
Action that results in the foundation no
requesting an abatement, you may use
donors, donor advisors, or related
longer having excess business holdings
Form 843, Claim for Refund and
persons have not corrected, give the
in a business enterprise.
Request for Abatement, instead of Form
following information separately for
4. Section 4944 (Schedule D)
4720.
each act:
An investment is considered to be
Schedule and item number of the act
removed from jeopardy when the
or transaction that has not been
Specific Instructions for
investment is sold or otherwise
corrected,
Page 1
disposed of, and the proceeds of such
A description of the act or
sale or other disposition are not
transaction, and
Question B. To avoid additional taxes
investments that jeopardize the carrying
A detailed explanation of why
and penalties under sections 4941
out of the foundation's exempt
correction has not been made and what
through 4945, 4955, and 4958, and in
purposes.
steps are being taken to make the
some cases further initial taxes on the
5. Section 4945 (Schedule E)
correction.
foundation, organization, and related
a. Recovering part or all of the
persons, a foundation, organization,
If you are correcting deficient
expenditure to the extent recovery is
disqualified person, or manager must
distributions under section 4942 where
possible, and where full recovery is not
correct the taxable event within the
an election under section 4942(h)(2)
possible, such additional corrective
correction period. The taxable event is
was filed with the IRS, provide a copy of
action as is prescribed by regulations,
the act, failure to act, or transaction that
the election. See the instructions for
or
resulted in the liability for initial taxes
Form 990-PF, Part XIII, lines 4b and 4c
under these provisions.
for more information.
b. Obtaining or making the report in
question for a case that fails to comply
Generally, the correction period
Part I
begins on the date the event occurs and
with section 4945(h)(2) or (3)
Line 8
ends 90 days after the mailing date of a
(expenditure responsibility).
notice of deficiency, under section
6. Section 4955 (Schedule F)
If the organization has an entry
6212, in connection with the second tier
Recovering part or all of the expenditure
on this line, it must also file
tax imposed on that taxable event. That
TIP
to the extent recovery is possible,
Form 8870.
time is extended by:
establishment of safeguards to prevent
Any period in which a deficiency
Enter the total of all premiums paid by
future political expenditures, and where
cannot be assessed under section
the organization on any personal benefit
full recovery is not possible, such
6213(a) because a petition to the Tax
contract if the payment of premiums is in
additional corrective action as is
Court for redetermination of the
connection with a transfer for which a
prescribed by the regulations.
deficiency is pending, not extended by
deduction is not allowed under section
7. Section 4958 (Schedule I)
any supplemental proceeding by the
170(f)(10)(A). Also, if there is an
Undoing the excess benefit to the extent
Tax Court under section 4961(b),
understanding or expectation that any
possible and taking any additional
regarding whether correction was made,
person will directly or indirectly pay any
measures necessary to place the
and
Instructions for Form 4720 (2015)
5