Instructions For Form 4720 - 2016 (Page 6 of 19) in pdf

Schedule and item number of the act

1. Write “ATTACHMENT TO FORM

column (d), that the individual took part

or transaction that hasn't been

4720” at the top of page 1.

in as a foundation manager.

corrected,

2. Enter the trust's name under

Column (f). Enter for each person

A description of the act or

“Name of organization” and complete

listed in column (a) the tax on political

transaction, and

item D and E at the top of page 1.

expenditures from Schedule F, Part II,

A detailed explanation of why

column (d), that the individual took part

3. Complete Parts I and II. If a line

correction hasn't been made and what

in as an organization or foundation

doesn't apply, leave it blank.

steps are being taken to make the

manager.

4. Complete any of the Schedules

correction.

on Form 990-T or other forms or attach

Column (g). Enter for each person

If you are correcting deficient

a schedule as required by any line on

listed in column (a) the tax on

distributions under section 4942 where

which an entry is made for Parts I and II.

disqualifying lobbying expenditures from

an election under section 4942(h)(2)

Also, attach any schedule as may be

Schedule H, Part II, column (d), that the

was filed with the IRS, provide a copy of

required on any Schedule on Form

individual took part in as an organization

the election. See the instructions for

990-T or other form that you are

manager.

Form 990-PF, Part XIII, lines 4b and 4c

required to complete. However, if

for more information.

Column (h). For each person listed in

Schedule D (Form 1041) is required,

column (a), enter the sum of:

Part I

don't complete Part V of Schedule D

1. Taxes that person owes as a

(Form 1041).

Line 8

disqualified person, from Schedule I,

5. Enter the amount from line 34 of

Part II, column (d), and

If the organization has an entry

Form 990-T on Part I, line 11 of Form

on this line, it must also file

2. Tax on excess benefit

4720. Don't complete Parts III-V or the

TIP

Form 8870.

transactions in which the organization

signature area of Form 990-T.

manager participated knowing that the

Enter the total of all premiums paid by

If you don't complete a Form 990-T

transaction was an excess benefit

the organization on any personal benefit

as the attached statement, then attach a

transaction, from Schedule I, Part III,

contract if the payment of premiums is in

schedule with the same information as

column (d).

connection with a transfer for which a

Form 990-T and its Schedules (as

deduction isn't allowed under section

discussed above) including all the

Column (i). Enter for each person

170(f)(10)(A). Also, if there is an

information that must be attached to

listed in column (a) the tax on the entity

understanding or expectation that any

Form 990-T and its Schedules, such as

manager who approved or otherwise

person will directly or indirectly pay any

other forms and attachments. Be sure to

caused the entity to be a party to a

premium on a personal benefit contract

enter the amount shown as unrelated

prohibited tax shelter transaction from

for the transferor, include those

business taxable income on Part I,

Schedule J, Part II, column (d).

premium payments in the amount

line 11 of Form 4720.

Column (j). Enter for each person

entered on this line.

Part IIA

listed in column (a) the tax on taxable

distributions from sponsoring

A personal benefit contract is (to the

Columns (a) and (b). List the names,

organizations maintaining donor

transferor) any life insurance, annuity, or

addresses, and taxpayer identification

advised funds from Schedule K, Part II,

endowment contract that benefits

numbers of all persons who owe tax in

column (d), that the individual took part

directly or indirectly the transferor, a

connection with the foundation or

in as a manager.

member of the transferor's family, or any

organization, whether as managers,

other person designated by the

Column (k). For each person listed in

self-dealers, disqualified persons,

transferor (other than an organization

column (a), enter the:

donors, donor advisors, or related

described in section 170(c)).

persons, as shown in Schedules A, D,

1. Tax imposed on a donor, donor

E, F, H, I, J, K, and L.

advisor, or related person, from

For more information, see Notice

Schedule L, Part II, column (d), and

Column (c). For each person listed in

2000-24, 2000-17 I.R.B. 952, at

column (a), enter the sum of:

2. Tax on each fund manager who

agreed to the making of a distribution of

1. Taxes that person owes as a

a prohibited benefit from Schedule L,

self-dealer, from Schedule A, Part II,

Line 11

Part III, column (d), that the individual

column (d), and

Enter the charitable remainder trust's

took part in as a manager.

2. Tax for acts of self-dealing in

unrelated business taxable income on

which the individual participated as a

Liability for tax. A person's liability

line 11. Charitable remainder trusts

manager, from Schedule A, Part III,

for tax as a manager, self-dealer,

must attach a statement that shows how

column (d).

disqualified person, donor, donor

their unrelated business taxable income

advisor, or related person, under

was computed. The excise tax imposed

Column (d). Enter for each person

sections 4912, 4941, 4944, 4945, 4955,

on a charitable remainder trust is equal

listed in column (a) the tax on

4958, 4966, and 4967 is joint and

to the trust's unrelated business taxable

investments that jeopardize charitable

several. Therefore, if more than one

income.

purpose from Schedule D, Part II,

person owes tax on an act as a

Attached statement. Charitable

column (d), that the individual took part

manager, self-dealer, disqualified

remainder trusts may use Form 990-T

in as a foundation manager.

person, donor, donor advisor, or related

as the attached statement. If the trust

person, they may apportion the tax

Column (e). Enter for each person

uses Form 990-T as the attached

among themselves. However, when all

listed in column (a) the tax on taxable

statement, complete Form 990-T as

managers, self-dealers, donors, donor

expenditures from Schedule E, Part II,

follows:

Instructions for Form 4720 (2016)

Instructions For Form 4720 - 2016 Page 6

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