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The section 4967 taxes on

on any taxable distributions under

IRS E-Services Make

distribution of prohibited benefits from

section 4966 (Schedule K).

donor advised funds;

Taxes Easier

Certain tax-exempt entities that are a

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The section 170(f)(10) tax on any

party to a prohibited tax shelter

Now more than ever before, businesses

premiums paid on a personal benefit

transaction (PTST). Certain

can enjoy the benefits of filing and

contract in connection with a transfer to

tax-exempt entities must file Form 4720

paying their federal taxes electronically.

an organization or charitable remainder

to report the liability and pay the tax

Whether you rely on a tax professional

trust for which a charitable deduction is

due under section 4965(a)(1). This

or handle your own taxes, the IRS

not allowed to the transferor; and

requirement applies to entities

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offers you convenient programs to

The section 664(c)(2) tax on the

described in section 501(c), 501(d), or

make taxes easier.

unrelated business taxable income of a

170(c) (other than the United States) or

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You can e-file your Form 990 or

charitable remainder trust.

an Indian tribal government (within the

Form 990-PF; Form 940 and 941

meaning of section 7701(a)(40)).

Who Must File

employment tax returns; Forms 1099;

and other information returns. Visit

Any entity described in section

Private foundations and section

for details.

TIP

4965(c) that is a party to a

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4947(a) trusts. Generally, Form 4720

PTST must file Form 8886-T.

You can pay taxes online or by

must be filed by all organizations,

phone using the free Electronic Federal

Managers, self-dealers, disqualified

including foreign organizations, that

Tax Payment System (EFTPS). Visit

persons, donors, donor advisors,

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

or call 1-800-555-4477

and related persons. If you are a

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

for details. Electronic Funds Withdrawal

manager, self-dealer, disqualified

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

(EFW) from a checking or savings

person, donor, donor advisor, or related

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

account also is available to those who

person who owes tax under Chapter 41

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

file electronically.

or 42, including entity managers under

5227. A trust described in section

section 4965, and you have the same

4947(a)(2) is considered a private

General Instructions

tax year (or accounting year, as

foundation insofar as it is subject to

applicable) of the entity, you may report

Chapter 42 provisions.

the tax you owe on the Form 4720 filed

Purpose of Form

Public charities making excess

by the entity. Managers, self-dealers,

lobbying expenditures. Public

and disqualified persons who do this

Use Form 4720 to figure and pay:

charities that made the election under

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are responsible for the parts that relate

The initial taxes on private

section 501(h) and owe tax on excess

to taxes they owe and should include

foundations and self-dealers, under

lobbying expenditures as figured on

their own check or money order,

sections 4941 through 4945 for

Schedule A (Form 990 or 990-EZ), Part

payable to the United States Treasury,

self-dealing, failure to distribute income,

VI-A, must file Form 4720 to report the

with the return.

excess business holdings, investments

liability and pay the tax (Schedule G).

that jeopardize charitable purpose, and

Managers, self-dealers, disqualified

Certain organizations (and possibly

taxable expenditures;

persons, donors, donor advisors, and

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their managers) whose section

related persons who owe tax under

The initial tax on certain supporting

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

Chapter 41 or 42, including entity

organizations and donor advised funds

excess lobbying activities are subject to

managers under section 4965, and do

for excess business holdings under

a 5% excise tax on their lobbying

not have the same tax year (or

section 4943;

expenditures.

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accounting year, as applicable) or do

The section 4911 tax on excess

not sign the return of the entity, must

Organizations making political

lobbying expenditures by public

file a separate return on Form 4720

expenditures. All section 501(c)(3)

charities that have elected to be subject

showing the tax owed and the name of

organizations that make a political

to section 501(h) regarding

the entity for which you owe tax. If you

expenditure must file Form 4720 to

expenditures to influence legislation.

file a separate Form 4720, enter your

report the liability and pay the tax.

(Private foundations and section

tax year at the top of the form. Enter

Organization managers may report any

4947(a) trusts are not eligible to make

your name, address, and taxpayer

first tier tax they owe on Schedule F of

this election.);

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identification number in Part II-A.

Form 4720. (See Schedule F

The section 4912 tax on excess

Complete all the information the form

instructions for the definition of political

lobbying expenditures that result in loss

requires, to the extent possible, that

expenditures.)

of section 501(c)(3) tax-exempt status;

applies to your liability.

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The section 4955 tax imposed on any

Charitable organizations that make

amount paid or incurred by a section

certain premium payments on

Managers of tax favored

501(c)(3) organization that participates

personal benefit contracts. Form

TIP

retirement plans, individual

or intervenes in any political campaign

4720 must be filed by any organization

retirement arrangements, and

on behalf of, or in opposition to, any

described in section 170(c) or section

savings arrangements described in

candidate for public office;

664(d) that answered “Yes” to question

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

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(b) in Part X of Form 990, question 6b

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

The section 4958 initial taxes on

in Part VII-B of Form 990-PF, or

223(d) must report and pay tax due

disqualified persons and organization

question 80b in Part VI-B of Form 5227.

managers of section 501(c)(3) (except

under section 4965(a)(2) on Form

private foundations) and section

5330.

Sponsoring organizations

501(c)(4) organizations that engage in

maintaining donor advised funds.

Charitable Remainder Trusts. All

excess benefit transactions;

All section 170(c) organizations

charitable remainder trusts described in

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The section 4965 taxes related to

(excluding private foundations and

section 664 that have unrelated

prohibited tax shelter transactions;

government organizations referred to in

business taxable income for the tax

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The section 4966 taxes on taxable

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

year must file Form 4720 to report the

distributions by sponsoring

that maintain one or more donor

liability and pay the tax due. Unrelated

organizations maintaining donor

advised funds must file Form 4720 to

business taxable income is figured

advised funds;

report the liability and pay the tax owed

under section 512 and is determined as

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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 - 2007 Page 2

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