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Rounding Off to Whole

For a corporation (or an association),

total, including amounts and

the form may be signed by one of the

transactions from both inside and

Dollars

following: president, vice president,

outside the United States.

treasurer, assistant treasurer, chief

You may round off cents to whole

accounting officer, or other corporate

dollars on your return and schedules. If

Sections 4941 through 4945 and

officer (such as tax officer).

you do round to whole dollars, you

section 4955 do not apply to foreign

must round all amounts. To round, drop

private foundations that receive

For a partnership, the form may be

amounts under 50 cents and increase

signed by a partner or partners

substantially all of their support (other

amounts from 50 to 99 cents to the next

authorized to sign the partnership

than gross investment income) from

dollar. For example, $1.39 becomes $1

return.

sources outside the United States.

and $2.50 becomes $3.

These organizations must complete this

If the return is filed on behalf of a

If you have to add two or more

form and file it in the same manner as

trust, the authorized trustee(s) must

amounts to figure the amount to enter

other private foundations. However,

sign it.

on a line, include cents when adding

these organizations, as well as

A receiver, trustee, or assignee

the amounts and round off only the

foundation managers and self-dealers,

required to file any return on behalf of

total.

do not have to pay any tax that would

an individual, a trust, estate,

otherwise be due on this return.

partnership, association, company, or

Penalties and Interest

corporation must sign the Form 4720

There are penalties for failure to file or

filed for these taxpayers.

Tax Payments

to pay tax. There are also penalties for

Also, a person with a valid power of

willful failure to file, supply information

Managers, self-dealers, disqualified

attorney may sign for the organization,

or pay tax, and for filing fraudulent

persons, donors, donor advisors, and

foundation, manager, self-dealer,

returns and statements, that apply to

related persons, paying tax on the

donor, donor advisor, or related person.

public charities, private foundations,

Include a copy of the power of attorney

organization’s Form 4720 must pay with

managers, donors, donor advisors,

with the return.

the return the tax that applies to them

related persons, and self-dealers who

as shown in Part II-A. Managers,

are required to file this return. See

Paid Preparer

self-dealers, disqualified persons,

sections 6651, 7203, 7206, and 7207.

Generally, anyone who is paid to

donors, donor advisors, and related

Also, see section 6684 for penalties

prepare a tax return must sign the

persons, who file separate Forms 4720

that relate to tax liability under Chapter

return and fill in the blanks in the Paid

must pay the applicable tax with their

42.

Preparer Use Only area of the return.

separate returns. When managers do

Interest at the underpayment rate

not sign the organization’s Form 4720

The person required to sign the

established under section 6621 is

to report their own tax liability, the

return must:

charged for any unpaid tax. The

•

amount of tax they owe should not be

Complete the required preparer

interest on underpayments is in addition

entered in Part II-B, line 1.

information,

to any penalties.

•

Sign it in the space provided for the

preparer’s signature (a facsimilie

Payment by a private foundation of

Abatement

signature is acceptable), and

any taxes owed by the foundation

•

See section 4962 for rules on

Give you a copy of the return for your

managers or self-dealers will result in

abatement, refund, or relief from

records.

additional taxes under the self-dealing

payment of first tier taxes under

and taxable expenditure provisions.

Attachments

sections 4942 through 4945, 4955,

Managers and self-dealers should pay

4958, 4966, and 4967. To request

taxes imposed on them with their own

If you need more space, attach

abatement, refund, or relief under

check or money order.

separate sheets showing the same

section 4962, write “Request for

information in the same order as on the

Abatement Under Section 4962” in the

printed form. Show the totals on the

Disqualified persons and entity

top margin of Form 4720, page 1.

printed form.

managers should pay taxes on excess

Initial Tax Liability

benefit transactions that are imposed

Enter the organization’s name and

on them with their own check or money

EIN on each sheet. Use sheets that are

If you pay an initial tax on self-dealing

order. Any reimbursement of a

the same size as the form and indicate

or on investments that jeopardize

disqualified person’s tax liability from

clearly the line of the printed form to

charitable purpose (figured on

excess benefit transactions by the

which the information relates.

Schedules A and D of Form 4720,

organization will be treated as an

respectively) for tax year 2011, the

Organizations Organized

excess benefit transaction subject to

payment may not satisfy the entire tax

the tax unless the organization included

or Created in a Foreign

liability for an act of self-dealing or a

the reimbursement in the disqualified

jeopardy investment. (For the definition

Country or U.S.

person’s compensation and the

of self-dealing, see the instructions for

disqualified person’s total

Schedule A of this form; for the

Possession

compensation was reasonable. See the

definition of jeopardy investment, see

instructions for Schedule I, later, for

Report all amounts in U.S. currency

the instructions for Schedule D of this

information on excess benefit

(state conversion rate used) and give

form.) Paying the tax and filing a Form

information in English. Report items in

transactions.

4720 are required for each year or part

-4-

Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes - Department Of The Treasury - 2011 Page 4

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