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Amended Return

of a year in the taxable period that

The taxable event will be treated as

applies to the act or investment.

occurring:

To correct a previously filed Form 4720,

•

Generally, the taxable period begins

For the tax on failure to distribute

use the same year form as you are

with the date of the act or investment

income, on the first day of the tax year

correcting, then:

and ends with the date corrective action

for which there was a failure to

•

Write “Amended Return,” at the top

is completed, a notice of deficiency is

distribute income,

of page 1.

•

mailed, or the tax is assessed,

For the tax on excess business

•

Complete the entire return (not just

whichever comes first.

holdings, on the first day on which there

the part that changed) following the

were excess business holdings, or

Similar rules apply for the initial tax

form and instructions for the amended

•

In any other case, on the date the

liability resulting from failing to distribute

year.

event occurred.

•

income (Schedule B) and from

Include a statement that identifies the

Generally, the term “correction” has

acquiring excess business holdings

lines and amounts being changed and

(Schedule C). Thus, the initial tax

the following meanings.

the reason for each change.

•

liability for those taxes continues to

Write the entity’s name and EIN at

1. Section 4941 (Schedule A)

accrue until the date a notice of

the top of each page of the statement.

Undoing the transaction to the extent

deficiency is mailed, the violation is

possible, but in any case placing the

If the amended return is claiming a

corrected, or the tax is assessed,

private foundation in a financial position

refund or requesting an abatement,

whichever comes first.

not worse than that in which it would be

write “Claim for Refund” or “Request for

if the disqualified person were dealing

Abatement,” whichever is applicable,

Completing the

under the highest fiduciary standards.

near the top of the statement discussed

2. Section 4942 (Schedule B)

Schedules

above.

Making sufficient qualifying distributions

Before completing any of the schedules

Note: If you are claiming a refund or

to compensate for deficient qualifying

in this return, read the applicable

requesting an abatement, you may use

distributions for a prior tax year.

instructions. If any completed schedule

Form 843, Claim for Refund and

3. Section 4943 (Schedule C)

shows taxes owed, enter them on page

Request for Abatement, instead of

Action that results in the foundation no

1 of this return.

Form 4720.

longer having excess business holdings

in a business enterprise.

The instructions for Schedules A

4. Section 4944 (Schedule D) An

through L describe acts or transactions

investment is considered to be removed

Specific Instructions for

subject to tax under Chapter 42. Also,

from jeopardy when the investment is

go to

Page 1

sold or otherwise disposed of, and the

index.html for a list of exceptions that

proceeds of such sale or other

eliminate any tax liability that would

Question B. To avoid additional taxes

disposition are not investments that

otherwise be shown on Schedules A

and penalties under sections 4941

jeopardize the carrying out of the

and E. Do not complete Schedules A

through 4945, 4955, and 4958, and in

foundation’s exempt purposes.

and E if exceptions apply to all the acts

some cases further initial taxes on the

5. Section 4945 (Schedule E)

or transactions. In general, question A

foundation, organization, and related

a. Recovering part or all of the

on page 1 and Schedules A, B, C, D,

persons, a foundation, organization,

expenditure to the extent recovery is

and E do not apply to public charities.

disqualified person, or manager must

possible, and where full recovery is not

However, Schedule C does apply to

correct the taxable event within the

possible, such additional corrective

some public charities including donor

correction period. The taxable event is

action as is prescribed by regulations,

advised funds and certain supporting

the act, failure to act, or transaction that

organizations that are treated as private

resulted in the liability for initial taxes

b. Obtaining or making the report in

foundations for purposes of section

under these provisions.

question for a case that fails to comply

4943. See the instructions for Schedule

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

Generally, the correction period

C for a description of the public

(expenditure responsibility).

begins on the date the event occurs

charities to which section 4943 applies.

and ends 90 days after the mailing date

6. Section 4955 (Schedule F)

Before completing Schedule C,

of a notice of deficiency, under section

Recovering part or all of the

determine whether the organization or

6212, in connection with the second tier

expenditure to the extent recovery is

donor advised fund has excess

tax imposed on that taxable event. That

possible, establishment of safeguards

holdings in any business enterprise. If

time is extended by:

to prevent future political expenditures,

the organization or donor advised fund

•

Any period in which a deficiency

and where full recovery is not possible,

has holdings subject to the tax on

cannot be assessed under section

such additional corrective action as is

excess business holdings, complete

6213(a) because a petition to the Tax

prescribed by the regulations.

Schedule C for each enterprise.

Court for redetermination of the

7. Section 4958 (Schedule I)

Before completing Schedule D,

deficiency is pending, not extended by

Undoing the excess benefit to the

determine whether the investment was

any supplemental proceeding by the

extent possible and taking any

program related. If not, complete

Tax Court under section 4961(b),

additional measures necessary to place

Schedule D for each investment for

regarding whether correction was

the organization in a financial position

which you answered “Yes,” to Form

made, and

not worse than that in which it would be

•

990-PF, Part VII-B, question 4a or b, or

Any other period the IRS determines

if the disqualified person had been

Form 5227, Part VI-B, question 78a or

is reasonable and necessary to correct

dealing under the highest fiduciary

the taxable event.

standards.

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Form 4720 Instructions

Instructions For Form 4720 - Return Of Certain Excise Taxes - Department Of The Treasury - 2011 Page 5

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