Instructions For Form 4720 - 2016 (Page 2 of 19) in pdf

must be filed by all organizations,

transaction (PTST). Certain

person paying taxes shown on Part II-A

including foreign organizations, that

tax-exempt entities must file Form 4720

should include his or her own check or

answered “Yes,” to question 1b, 1c, 2b,

to report the liability and pay the tax due

money order, payable to the United

3b, 4a, 4b, 5b, 6b, or 7b in Part VII-B of

under section 4965(a)(1) (Schedule J

States Treasury, with Form 4720. The

Form 990-PF; or “Yes,” to question 75b,

and Part I, line 9). This requirement

organization must not pay any taxes

75c, 77b, 78a, 78b, 79b, or 80b in Part

applies to entities described in sections

shown on Part II-A.

VI-B, and Item G on page 1 of Form

501(c), 501(d), or 170(c) (other than the

A manager, self-dealer, disqualified

5227. A trust described in section

United States) or an Indian tribal

person, donor, donor advisor, and

4947(a)(2) is considered a private

government (within the meaning of

related person who owes tax under

foundation insofar as it is subject to

section 7701(a)(40)).

Chapter 41 or 42, including organization

Chapter 42 provisions. (Schedules B

managers under section 4965, and who

Any entity described in section

through E and Part I, lines 1 through 4,

doesn’t have the same tax year (or

4965(c) that is a party to a PTST

TIP

as applicable).

accounting year, as applicable) or

must file Form 8886-T.

doesn’t sign the return filed by the

Other organizations owing initial tax

organization, must file a separate Form

Sponsoring organizations maintain

es on excess business holdings.

4720 showing the tax owed. A separate

ing donor advised funds. All section

Supporting organizations described in

Form 4720 filed by a manager,

170(c) organizations (excluding private

section 4943(f)(3) and donor advised

self-dealer, disqualified person, donor,

foundations and government

funds described in section 4966(d)(2)

donor advisor or related person who

organizations referred to in sections

that owe the tax reported on Schedule C

files a separate Form 4720 should

170(c)(1) and 170(c)(2)(A)) that

(section 4943(a)). (Schedule C and Part

include the name of the organization. If

maintain one or more donor advised

I, line 2).

applicable, a separate Form 4720

funds must file Form 4720 to report the

Organizations making political ex

should be filed for each organization for

liability and pay the tax owed on any

penditures. All section 501(c)(3)

which the manager, self-dealer,

taxable distributions under section 4966

organizations that make a political

disqualified person, donor, donor

(Schedule K and Part I, line 10).

expenditure must file Form 4720 to

advisor or related person owes tax. A

Charitable remainder trusts. All

report the liability and pay the tax

person filing Form 4720 separate from

charitable remainder trusts described in

(Schedule F and Part I, line 5).

the organization should enter his or her

section 664 that have unrelated

Organization managers may report any

tax year at the top of Form 4720. Enter

business taxable income for the tax year

first tier tax they owe on Schedule F of

the name, address, and taxpayer

must file Form 4720 to report the liability

Form 4720. (See Schedule F

identification number of the manager,

and pay the tax due (Part I, line 11).

instructions, later, for the definition of

self-dealer, disqualified person, donor,

Unrelated business taxable income is

political expenditures.)

donor advisor or related person in Part

figured under section 512 and is

II-A. Each manager, self-dealer,

Public charities making excess lob

determined as if Part III of subchapter F

disqualified person, donor, donor

bying expenditures. Public charities

applies to such trusts.

advisor or related person should

that made the election under section

Hospital organizations failing to

complete all the information the form

501(h) and owe tax on excess lobbying

meet the community health needs

requires, including the schedule(s)

expenditures as figured on Schedule C

assessment requirements (Sections

applicable to each tax shown on Part

(Form 990 or 990-EZ), Part II-A, must

501(r)(3), 4959). An excise tax is

II-A, to the extent possible, and as

file Form 4720 to report the liability and

imposed on the failure by a hospital

applicable.

pay the tax (Schedule G and Part I,

organization to meet the community

line 6). Certain organizations (and

Managers of tax favored

health needs assessment (“CHNA”)

possibly their managers) whose section

retirement plans, individual

TIP

requirements of section 501(r)(3)

501(c)(3) status is revoked because of

retirement arrangements, and

(Schedule M).

excess lobbying activities are subject to

savings arrangements described in

a 5% excise tax on their lobbying

Individuals

sections 401(a), 403(a), 403(b), 529,

expenditures (Schedule H and Part I,

457(b), 408(a), 220(d), 408(b), 530, or

line 7 or Part II-A, column (g), as

Managers, selfdealers, disqualified

223(d) must report and pay tax due

applicable).

persons, donors, donor advisors,

under section 4965(a)(2) on Form 5330.

and related persons. A manager,

Charitable organizations that make

self-dealer, disqualified person, donor,

certain premium payments on per

Where To File

donor advisor, or related person who

sonal benefit contracts. Form 4720

owes tax under Chapter 41 or 42,

must be filed by any organization

including an organization manager

described in section 170(c) or section

under section 4965, who has the same

664(d) that answered “Yes,” to question

If you are located in

Then use the

tax year (or accounting year, as

7f in Part V of Form 990, question 6b in

following address

applicable) as the organization, may

Part VII-B of Form 990-PF, question 80b

The United States

Department of the

report the tax shown on Part II-A of the

in Part VI-B of Form 5227, or that

Treasury

Form 4720 filed by the organization. A

Internal Revenue

otherwise paid premiums on a personal

manager, self-dealer, or disqualified

Service Center

benefit contract in connection with a

person who reports a tax on Part II-A is

Ogden, UT 84201-0027

transfer to an organization for which a

personally responsible for the accuracy

A foreign country or

Internal Revenue

charitable deduction was not allowed to

of information set forth on Part II-A, as

a U.S. possession

Service Center

the transferor (Part I, line 8).

P.O. Box 409101

well as any tax shown there. Each

Ogden, UT 84409

Certain taxexempt entities that are a

manager, self-dealer, disqualified

party to a prohibited tax shelter

person, donor, donor advisor or related

Instructions for Form 4720 (2016)

Instructions For Form 4720 - 2016 Page 2

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