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In any other case, on the date the

A detailed description of the

was computed. The excise tax imposed

event occurred.

correction made,

on a charitable remainder trust is equal

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The amount of any political

to the trust’s unrelated business taxable

Generally, the term “correction” has

expenditure recovered,

income.

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the following meanings.

Description of safeguards to prevent

Attached schedule. Charitable

1. Section 4941 (Schedule A)

future political expenditures, and

remainder trusts may use Form 990-T

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Undoing the transaction to the extent

The date of correction.

as the attached schedule. If the trust

possible, but in any case placing the

For any acts or transactions the

uses Form 990-T as the attached

private foundation in a financial position

foundation, entity, managers,

schedule, complete Form 990-T as

not worse than that in which it would be

self-dealers, disqualified persons,

follows:

if the disqualified person were dealing

donors, donor advisors, or related

1. Write “ATTACHMENT TO FORM

under the highest fiduciary standards.

persons have not corrected, give the

4720” at the top of page 1.

2. Section 4942 (Schedule B)

following information separately for

2. Enter the trust’s name under

Making sufficient qualifying distributions

each act:

“Name of organization” and complete

to compensate for deficient qualifying

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Schedule and item number of the act

item D and E at the top of page 1.

distributions for a prior tax year.

or transaction that has not been

3. Complete Parts I and II. If a line

3. Section 4943 (Schedule C)

corrected,

does not apply, leave it blank.

Action that results in the foundation no

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A description of the act or

4. Complete any of the Schedules

longer having excess business holdings

transaction, and

on Form 990-T or other forms or attach

in a business enterprise.

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A detailed explanation of why

a schedule as required by any line on

4. Section 4944 (Schedule D) An

correction has not been made and what

which an entry is made for Parts I and

investment is considered to be removed

steps are being taken to make the

II. Also, attach any schedule as may be

from jeopardy when the investment is

correction.

required on any Schedule on Form

sold or otherwise disposed of, and the

If you are correcting deficient

990-T or other form that you are

proceeds of such sale or other

distributions under section 4942 where

required to complete. However, if

disposition are not investments that

an election under section 4942(h)(2)

Schedule D (Form 1041) is required, do

jeopardize the carrying out of the

was filed with the IRS, provide a copy

not complete Part V of Schedule D

foundation’s exempt purposes.

of the election. See the instructions for

(Form 1041).

5. Section 4945 (Schedule E)

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

5. Enter the amount from line 34 of

a. Recovering part or all of the

for more information.

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

expenditure to the extent recovery is

4720. Do not complete Parts III-V or the

possible, and where full recovery is not

Part I

signature area of Form 990-T.

possible, such additional corrective

action as is prescribed by regulations,

Line 8

If you do not complete a Form 990-T

as the attached schedule, then attach a

b. Obtaining or making the report in

If the organization has an entry

schedule with the same information as

question for a case that fails to comply

TIP

on this line, it must also file

Form 990-T and its Schedules (as

with section 4945(h)(2) or (3)

Form 8870.

discussed above) including all the

(expenditure responsibility).

information that must be attached to

Enter the total of all premiums paid

6. Section 4955 (Schedule F)

Form 990-T and its Schedules, such as

by the organization on any personal

Recovering part or all of the

other forms and attachments. Be sure

benefit contract if the payment of

expenditure to the extent recovery is

to enter the amount shown as unrelated

premiums is in connection with a

possible, establishment of safeguards

business taxable income on Part I, line

transfer for which a deduction is not

to prevent future political expenditures,

11 of Form 4720.

allowed under section 170(f)(10)(A).

and where full recovery is not possible,

Also, if there is an understanding or

such additional corrective action as is

Part II-A

expectation that any person will directly

prescribed by the regulations.

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

or indirectly pay any premium on a

7. Section 4958 (Schedule I)

addresses, and taxpayer identification

personal benefit contract for the

Undoing the excess benefit to the

numbers of all persons who owe tax in

transferor, include those premium

extent possible and taking any

connection with the foundation or

payments in the amount entered on this

additional measures necessary to place

line.

organization, whether as managers,

the organization in a financial position

self-dealers, disqualified persons,

not worse than that in which it would be

A personal benefit contract is (to the

donors, donor advisors, or related

if the disqualified person had been

transferor) any life insurance, annuity,

persons, as shown in Schedules A, D,

dealing under the highest fiduciary

or endowment contract that benefits

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

standards.

directly or indirectly the transferor, a

member of the transferor’s family, or

Column (c). For each person listed in

any other person designated by the

column (a), enter the sum of:

If, when the return is filed, the

transferor (other than an organization

foundation, entity, managers,

1. Taxes that person owes as a

described in section 170(c)).

self-dealers, disqualified persons,

self-dealer, from Schedule A, Part II,

donors, donor advisors, or related

For more information, see Notice

column (d), and

persons have corrected any acts or

2000-24, which is on page 952 of

2. Tax for acts of self-dealing in

transactions resulting in liability for tax

Internal Revenue Bulletin 2000-17 at

which the individual participated as a

under Chapter 42, answer “Yes” to

manager, from Schedule A, Part III,

question B and give the following

column (d).

Line 11

information separately for each

correction:

Enter the charitable remainder trust’s

Column (d). Enter for each person

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Schedule and item number of the act

unrelated business taxable income on

listed in column (a) the tax on jeopardy

or transaction that has been corrected,

line 11. Charitable remainder trusts

investments from Schedule D, Part II,

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A description of the act or transaction

must attach a schedule that shows how

column (d), that the individual took part

that resulted in the tax,

their unrelated business taxable income

in as a foundation manager.

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Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes On Charities And Other Persons - Department Of The Treasury - 2009 Page 5

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