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to compensate for deficient qualifying

Schedule and item number of the act

4. Complete any of the Schedules

distributions for a prior tax year.

or transaction that has not been

on Form 990-T or other forms or attach

3. Section 4943 (Schedule C) —

corrected,

a schedule as required by any line on

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Action that results in the foundation no

A description of the act or

which an entry is made for Parts I and

longer having excess business holdings

transaction, and

II. Also, attach any schedule as may be

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in a business enterprise.

A detailed explanation of why

required on any Schedule on Form

4. Section 4944 (Schedule D) — An

correction has not been made and what

990-T or other form that you are

investment is considered to be removed

steps are being taken to make the

required to complete. However, if

from jeopardy when the investment is

correction.

Schedule D (Form 1041) is required, do

sold or otherwise disposed of, and the

not complete Part V of Schedule D

If you are correcting deficient

proceeds of such sale or other

(Form 1041).

distributions under section 4942 where

disposition are not investments that

5. Enter the amount from line 34 of

an election under section 4942(h)(2)

jeopardize the carrying out of the

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

was filed with the IRS, provide a copy

foundation’s exempt purposes.

4720. Do not complete Parts III-V or the

of the election. See the instructions for

5. Section 4945 (Schedule E) —

signature area of Form 990-T.

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

a. Recovering part or all of the

for more information.

If you do not complete a Form 990-T

expenditure to the extent recovery is

Part I

as the attached schedule, then attach a

possible, and where full recovery is not

schedule with the same information as

possible, such additional corrective

Form 990-T and its Schedules (as

Line 8

action as is prescribed by regulations,

discussed above) including all the

information that must be attached to

If the organization has an entry

b. Obtaining or making the report in

Form 990-T and its Schedules, such as

TIP

on this line, it must also file

question for a case that fails to comply

other forms and attachments. Be sure

Form 8870.

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

to enter the amount shown as unrelated

(expenditure responsibility).

Enter the total of all premiums paid

business taxable income on Part I, line

6. Section 4955 (Schedule F) —

by the organization on any personal

11 of Form 4720.

Recovering part or all of the

benefit contract if the payment of

expenditure to the extent recovery is

Part II-A

premiums is in connection with a

possible, establishment of safeguards

transfer for which a deduction is not

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

to prevent future political expenditures,

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

addresses, and taxpayer identification

and where full recovery is not possible,

Also, if there is an understanding or

numbers of all persons who owe tax in

such additional corrective action as is

expectation that any person will directly

connection with the foundation or

prescribed by the regulations.

or indirectly pay any premium on a

organization, whether as managers,

7. Section 4958 (Schedule I) —

personal benefit contract for the

self-dealers, disqualified persons,

Undoing the excess benefit to the

transferor, include those premium

donors, donor advisors, or related

extent possible and taking any

payments in the amount entered on this

persons, as shown in Schedules A, D,

additional measures necessary to place

line.

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

the organization in a financial position

A personal benefit contract is (to the

not worse than that in which it would be

Column (c). For each person listed in

transferor) any life insurance, annuity,

if the disqualified person had been

column (a), enter the sum of:

or endowment contract that benefits

dealing under the highest fiduciary

1. Taxes that person owes as a

directly or indirectly the transferor, a

standards.

self-dealer, from Schedule A, Part II,

member of the transferor’s family, or

column (d), and

any other person designated by the

If, when the return is filed, the

2. Tax for acts of self-dealing in

transferor (other than an organization

foundation, entity, managers,

which the individual participated as a

described in section 170(c)).

self-dealers, disqualified persons,

manager, from Schedule A, Part III,

donors, donor advisors, or related

For more information, see Notice

column (d).

persons have corrected any acts or

2000-24, which is on page 952 of

transactions resulting in liability for tax

Internal Revenue Bulletin 2000-17 at

Column (d). Enter for each person

under Chapter 42, answer “Yes” to

listed in column (a) the tax on jeopardy

question B and give the following

investments from Schedule D, Part II,

Line 11

information separately for each

column (d), that the individual took part

Charitable remainder trusts that have

correction:

in as a foundation manager.

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unrelated business taxable income

Schedule and item number of the act

Column (e). Enter for each person

must attach a schedule that shows how

or transaction that has been corrected,

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listed in column (a) the tax on taxable

the amount was computed. The excise

A description of the act or transaction

expenditures from Schedule E, Part II,

tax imposed on a charitable remainder

that resulted in the tax,

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column (d), that the individual took part

trust is equal to the trust’s unrelated

A detailed description of the

in as a foundation manager.

business taxable income.

correction made,

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The amount of any political

Attached schedule. Charitable

Column (f). Enter for each person

expenditure recovered,

remainder trusts may use Form 990-T

listed in column (a) the tax on political

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Description of safeguards to prevent

as the attached schedule. If the trust

expenditures from Schedule F, Part II,

future political expenditures, and

column (d), that the individual took part

uses Form 990-T, complete the form as

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The date of correction.

in as an organization or foundation

follows:

manager.

For any acts or transactions the

1. Write “ATTACHMENT TO FORM

foundation, entity, managers,

4720 ” at the top of page 1.

Column (g). Enter for each person

self-dealers, disqualified persons,

2. Enter the trust’s name under

listed in column (a) the tax on

donors, donor advisors, or related

“Name of organization” and complete

disqualifying lobbying expenditures

persons have not corrected, give the

item D and E at the top of page 1.

from Schedule H, Part II, column (d),

following information separately for

3. Complete Parts I and II. If a line

that the individual took part in as an

each act:

does not apply, leave it blank.

organization 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 - 2007 Page 5

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