Looking for a Form 4720 Templates? Download it for free!

•

persons, as shown in Schedules A, D,

disqualified person, donor, donor

Lending of money or other extension

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

advisor, or related person, under

of credit between a private foundation

sections 4912, 4941, 4944, 4945, 4955,

and a disqualified person,

Column (c). For each person listed in

•

4958, 4966, and 4967 is joint and

Furnishing of goods, services, or

column (a), enter the sum of:

several. Therefore, if more than one

facilities between a private foundation

1. Taxes that person owes as a

person owes tax on an act as a

and a disqualified person,

self-dealer, from Schedule A, Part II,

•

manager, self-dealer, disqualified

Payment of compensation (or

column (d), and

person, donor, donor advisor, or related

payment or reimbursement of

2. Tax for acts of self-dealing in

person, they may apportion the tax

expenses) by a private foundation to a

which the individual participated as a

among themselves. However, when all

disqualified person,

manager, from Schedule A, Part III,

•

managers, self-dealers, donors, donor

Transfer to, or use by or for the

column (d).

advisors, related persons, or

benefit of, a disqualified person of the

disqualified persons who are liable for

income or assets of a private

Column (d). Enter for each person

tax on a particular transaction under

foundation, and

listed in column (a) the tax on jeopardy

•

sections 4912, 4941, 4944, 4945, 4955,

Agreement by a private foundation to

investments from Schedule D, Part II,

4958, 4966, or 4967 pay less than the

make any payment of money or other

column (d), that the individual took part

total tax due on that transaction, then

property to a government official other

in as a foundation manager.

the IRS may charge the amount owed

than an agreement to employ or make

Column (e). Enter for each person

to one or more of them regardless of

a grant to that individual for any period

listed in column (a) the tax on taxable

the tax apportionment shown on this

after the end of government service if

expenditures from Schedule E, Part II,

return.

that individual will be ending

column (d), that the individual took part

government service within a 90-day

in as a foundation manager.

Part II-B

period.

Column (f). Enter for each person

Exceptions to self-dealing. Go to

Line 2. If you filed Form 8868 for this

listed in column (a) the tax on political

return, subtract the payment(s) you

expenditures from Schedule F, Part II,

irm_07-027-015.html#d0e272

for a

made with Form 8868 from the amount

column (d), that the individual took part

description of acts that are not

you owe. If you have overpaid, report a

in as an organization or foundation

considered self-dealing.

negative amount in parenthesis.

manager.

Initial taxes on self-dealer. An initial

Column (g). Enter for each person

Note: If there is more than one signer

tax of 10% of the amount involved is

listed in column (a) the tax on

for this return, see Tax Payments on

charged for each act of self-dealing

disqualifying lobbying expenditures

page 3.

between a disqualified person and a

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

private foundation for each year or part

that the individual took part in as an

of a year in the taxable period. Any

organization manager.

Schedule A—Initial

disqualified person (other than a

Column (h). For each person listed in

foundation manager acting only as

Taxes on Self-Dealing

column (a), enter the sum of:

such) who takes part in the act of

1. Taxes that person owes as a

(Section 4941)

self-dealing must pay the tax.

disqualified person, from Schedule I,

Initial taxes on foundation managers.

Part II, column (d), and

General Instructions

When a tax is imposed on a foundation

2. Tax on excess benefit

manager for an act of self-dealing, the

transactions in which the organization

Requirement. All organizations that

tax will be 5% of the amount involved in

manager participated knowing that the

answered “Yes” to question 1b or 1c in

the act of self-dealing for each year or

transaction was improper, from

Part VII-B of Form 990-PF, or “Yes” to

part of a year in the taxable period.

Schedule I, Part III, column (d).

question 75b or 75c in Part VI-B of

However, the total tax imposed for all

Form 5227, must complete Schedule A.

years in the taxable period is limited to

Column (i). Enter for each person

Complete Parts I, II, and III of Schedule

$20,000 for each act of self-dealing.

listed in column (a) the tax on the entity

A only in connection with acts that are

The tax is imposed on any foundation

manager who approved or otherwise

subject to the tax on self-dealing.

manager who took part in the act

caused the entity to be a party to a

knowing that it was self-dealing except

prohibited tax shelter transaction from

Paying the tax and filing a Form

those foundation managers whose

Schedule J, Part II, column (d).

4720 is required for each year or part of

participation was not willful and was

a year in the taxable period that applies

Column (j). Enter for each person

due to reasonable cause. Any

to the act of self-dealing. Generally, the

listed in column (a) the tax on taxable

foundation manager who took part in

taxable period begins with the date on

distributions from sponsoring

the act of self-dealing must pay the tax.

which the self-dealing occurs and ends

organizations maintaining donor

on the earliest of:

advised funds from Schedule K, Part II,

Specific Instructions

•

column (d) that the individual took part

The date a notice of deficiency is

Part I. List each act of self-dealing in

in as a manager.

mailed under section 6212, in

Part I. Enter in column (d) the number

connection with the initial tax imposed

Column (k). For each person listed in

designation from Form 990-PF, Part

on the self-dealer,

column (a), enter the:

VII-B, question 1a, or Form 5227, Part

•

The date the initial tax on the

1. Tax imposed on a donor, donor

VI-B, question 75a, that applies to the

self-dealer is assessed, or

advisor, or related person, from

act. For example, “1a(1)” or “1a(4).”

•

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

The date correction of the act of

Part II. Enter in column (a) the names

self-dealing is completed.

2. Tax on each fund manager who

of all disqualified persons who took part

agreed to the making of a distribution of

Self-dealing. Self-dealing includes

in the acts of self-dealing listed in Part

a prohibited benefit from Schedule L,

any direct or indirect:

I. If more than one disqualified person

Part III, column (d) that the individual

•

Sale, exchange, or leasing of

took part in an act of self-dealing, each

took part in as a manager.

property between a private foundation

is individually liable for the entire tax in

Liability for tax. A person’s liability

and a disqualified person (see

connection with the act. But the

for tax as a manager, self-dealer,

definitions in Form 990-PF instructions),

disqualified persons who are liable for

-6-

Form 4720 Instructions

Instructions For Form 4720 - Instructions For Return Of Certain Excise Taxes - Department Of The Treasury - 2010 Page 6

Related Articles

Related forms

Related Categories