Instructions For Form 990-Pf - Return Of Private Foundation Or Section 4947(A)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2010 Page 6
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32State reporting requirements. See
Most tax-exempt organizations, other
apply the rules of Part VI to your tax year
Amended returns under General
than churches, are required to file an
2011 estimated amounts for that part.
Instruction F.
annual Form 990, 990-EZ, 990-PF, or
Enter the tax you figured on line 10a of
990-N e-Postcard with the IRS. If an
Form 990-W.
Need a copy of an old return or form?
organization fails to file an annual return
Use Form 4506 to obtain a copy of a
The Form 990-W line items and
or notice for three consecutive years, it
previously filed return. You can obtain
instructions for large organizations also
will automatically lose its tax-exempt
blank forms for prior years by calling
apply to private foundations. For
status. In 2011, automatic revocations will
1-800-TAX-FORM (1-800-829-3676).
purposes of paying the estimated tax on
start for organizations not filing for the
net investment income, a “large
M. Penalty for Failure To
third consecutive year. A private
organization” is one that had net
foundation that loses its exemption must
File Timely, Completely, or
investment income of $1 million or more
file income tax returns and pay income
for any of the 3 tax years immediately
Correctly
taxes and must file Form 990-PF as a
preceding the tax year involved.
taxable private foundation. For details, go
To avoid filing an incomplete return or
Penalty. A foundation that does not pay
to
having to respond to requests for missing
the proper estimated tax when due may
information, see General Instruction B.
N. Penalties for Not Paying
be subject to the estimated tax penalty for
Against the organization. If an
the period of the underpayment. See
Tax on Time
organization does not file timely and
sections 6655(b) and (d) and the Form
completely, or does not furnish the correct
2220 instructions for further information.
There is a penalty for not paying tax when
information, it must pay $20 for each day
due (section 6651). The penalty generally
Special Rules
the failure continues ($100 a day if it is a
is
/
of 1% of the unpaid tax for each
1
2
large organization), unless it can show
month or part of a month the tax remains
Section 4947(a)(1) nonexempt
that the failure was due to reasonable
unpaid, not to exceed 25% of the unpaid
charitable trusts. Form 1041-ES should
cause. Those filing late (after the due
tax. If there was reasonable cause for not
be used to pay any estimated tax on
date, including extensions) must attach
paying the tax on time, the penalty can be
income subject to tax under section 1.
an explanation to the return. The
waived. However, interest is charged on
Form 1041-ES also contains the
maximum penalty for each return will not
any tax not paid on time, at the rate
estimated tax rules for paying the tax on
exceed the smaller of $10,000 ($50,000
provided by section 6621.
that income.
for a large organization) or 5% of the
Estimated tax penalty. The section
Taxable private foundations. Form
gross receipts of the organization for the
6655 penalty for failure to pay estimated
1120-W should be used to figure any
year.
tax applies to the tax on net investment
estimated tax on income subject to tax
Large organization. A large
income of domestic private foundations
under section 11. Form 1120-W contains
organization is one that has gross
and section 4947(a)(1) nonexempt
the estimated tax rules for paying the tax
receipts exceeding $1 million for the tax
charitable trusts. The penalty also applies
on that income.
year.
to any tax on unrelated business income
Gross receipts. Gross receipts
of a private foundation. Generally, if a
P. Tax Payment Methods
means the gross amount received during
private foundation’s tax liability is $500 or
for Domestic Private
the foundation’s annual accounting period
more and it did not make the required
from all sources without reduction for any
payments on time, then it is subject to the
Foundations
costs or expenses.
penalty.
Whether the foundation uses the
To figure the foundation’s gross
For more details, see the discussion
depository method of tax payment or the
receipts, complete the following:
of Form 2220 in General Instruction D.
special option for small foundations, it
1. Part I, line 12, column (a);
must pay the tax due (see Part VI) in full
O. Figuring and Paying
2. Add lines 6b and 10b; and
by the 15th day of the 5th month after the
3. Subtract line 6a.
Estimated Tax
end of its tax year.
Against the responsible person. The
A domestic exempt private foundation, a
IRS will make written demand that the
Electronic Deposit Requirement
domestic taxable private foundation, or a
delinquent return be filed or the
nonexempt charitable trust treated as a
information furnished within a reasonable
The IRS has issued proposed regulations
private foundation must make estimated
time after the mailing of the notice of the
under section 6302 which provide that
tax payments for the excise tax based on
demand. The person failing to comply
beginning January 1, 2011, the
investment income if it can expect its
with the demand on or before the date
foundation must deposit all depository
estimated tax (section 4940 tax minus
specified will have to pay $10 for each
taxes (such as employment tax, excise
allowable credits) to be $500 or more.
day the failure continues, unless there is
tax, and corporate income tax)
The number of installment payments it
reasonable cause. The maximum penalty
electronically using the Electronic Federal
must make under the depository method
imposed on all persons for any one return
Tax Payment System (EFTPS). Under
is determined at the time during the year
is $5,000. If more than one person is
these proposed regulations, which are
that it first meets this requirement. For
liable for any failures, all such persons
expected to be finalized by December 31,
calendar-year taxpayers, the first deposit
are jointly and severally liable for such
2010, Forms 8109 and 8109-B, Federal
of estimated taxes for a year generally
failures. See section 6652(c) for further
Tax Deposit Coupon, cannot be used
should be made by May 15 of the year.
information.
after December 31, 2010. For more
information about EFTPS or to enroll in
Although Form 990-W is used primarily
Other penalties. Because this return
EFTPS, visit the EFTPS website at
www.
to compute the installment payments of
also satisfies the filing requirements of a
eftps.gov, or call 1-800-555-4477. You
unrelated business income tax, it is also
tax return under section 6011 for the tax
can also get Pub. 966, The Secure Way
used to determine the timing and
on investment income imposed by section
to Pay Your Federal Taxes. See below for
amounts of installment payments of the
4940 (or 4948 if an exempt foreign
an exception to this rule for small
section 4940 tax based on investment
organization), the penalties imposed by
foundations
income. Compute separately any required
section 6651 for not filing a return (without
deposits of excise tax based on
reasonable cause) also apply.
Depositing on time. For deposits made
investment income and unrelated
There are also criminal penalties for
by EFTPS to be on time, the foundation
business income tax.
willful failure to file and for filing fraudulent
must initiate the transaction at least 1
returns and statements. See sections
To figure the estimated tax for the
business day before the date the deposit
7203, 7206, and 7207.
excise tax based on investment income,
is due.
-6-
Form 990-PF Instructions
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