Form 990 - Instructions For Schedule J printable pdf download

2010

Department of the Treasury

Internal Revenue Service

Instructions for Schedule J

(Form 990)

Compensation Information

501(c)(3) and section 501(c)(4)

travel does not include intermediate

Section references are to the Internal

organizations.

classes between first class and coach,

Revenue Code unless otherwise noted.

such as business class on commercial

General Instructions

Part II requires detailed

airlines. Bump-ups to first class free of

compensation information for

charge or as a result of using frequent

individuals for whom the organization

Note. Terms in bold are defined in the

flyer benefits, or similar arrangements

answered “Yes” on Form 990, Part IV,

Glossary of the Instructions for Form

that are at no additional cost to the

line 23. Not all persons listed on Form

990.

organization, can be disregarded.

990, Part VII, Section A, will necessarily

Charter travel refers to travel on an

be listed in Schedule J, Part II.

Purpose of Schedule

airplane, train, or boat under a charter

Part III is used to provide

Schedule J (Form 990) is used by an

or rental arrangement. Charter travel

explanations of answers as required in

organization that files Form 990 to

also includes any travel on an airplane

Parts I or II.

report compensation information for

or boat that is owned or leased by the

certain officers, directors, individual

Unless stated otherwise, all

organization.

trustees, key employees, and highest

questions in this schedule pertain to

Travel for companions refers to any

compensated employees, and

activity during the calendar year ending

travel of a listed person’s guest not

information on certain compensation

with or within the organization’s tax

traveling primarily for bona fide

year.

practices of the organization.

business purposes of the organization.

It also refers to any travel of a listed

Part II of Schedule J may be

Part I. Questions

person’s family members, whether or

duplicated if additional space is

Regarding

not for bona fide business purposes.

needed. Use as many duplicate copies

of Part II as needed, and number each

Tax indemnification and gross-up

Compensation

page.

payments refer to the organization’s

payment or reimbursement of any tax

For purposes of Part I, a listed person

Who Must File

obligations of a listed person.

is a person listed on Form 990, Part VII,

Section A.

Discretionary spending account

An organization that answered “Yes” on

refers to an account or sum of money

Line 1. Report information regarding

Form 990, Part IV, line 23, must

under the control of a listed person with

certain benefits (if any) provided to

complete Schedule J. Do not file

respect to which he or she is not

persons listed on Form 990, Part VII,

Schedule J for institutional trustees.

accountable to the organization under

Section A, line 1a.

If an organization is not required to

an accountable plan, whether or not

Line 1a. Check the appropriate

file Form 990 but chooses to do so, it

actually used for any personal

box(es) if the organization provided any

must file a complete return and provide

expenses. Accountable plans are

of the listed benefits to any of the

all of the information requested,

discussed in the instructions for Part II.

persons listed on Form 990, Part VII,

including the required schedules.

Housing allowance or residence for

Section A, regardless of whether such

personal use refers to any payment for,

benefits are reported as compensation

or provision of, housing by the

on Form W-2, box 5, or Form

Specific Instructions

organization for personal use by a

1099-MISC, box 7. For each of the

listed person, including a ministerial

listed benefits provided to or for a listed

Part I asks questions regarding certain

housing or parsonage allowance.

person, provide in Part III relevant

compensation practices of the

information regarding these items,

Payments for business use of

organization. Part I generally pertains to

which can include the following.

personal residence refers to any

all officers, directors, trustees and

•

The type of benefit.

payment by the organization for the use

employees of the organization listed on

•

The listed person who received the

of all or part of a listed person’s

Form 990, Part VII, Section A,

benefit, or a description of the types (for

residence for any purpose of the

regardless of whether the organization

example, all directors) and number of

organization.

answered “Yes” to line 23 of Part IV for

listed persons that received the benefit.

all such individuals. However, only the

Health or social club dues or

•

Whether the benefit, or any part of it,

organizations that are described in Who

initiation fees refers to any payment of

was treated as taxable compensation to

Must File must complete Part I. Part I,

dues by the organization for the

the listed person.

lines 1, 2, 7, and 8 require reporting on

membership of a listed person in a

the compensation practices of the filing

First-class travel refers to any travel

health or fitness club or a social or

organization, but not of related

on a passenger airplane, train, or boat

recreational club, whether or not such

organizations. Lines 3 through 6

with first-class seats or

clubs are tax-exempt. It does not

require information regarding both the

accommodations by a listed person or

include membership fees for an

filing organization and its related

his or her companion if any portion of

organization described in section

organizations. Part I, lines 5 through 8,

the cost above the lower-class fare is

501(c)(3) or section 501(c)(6) unless

must be completed only by section

paid by the organization. First-class

such organization provides health,

Cat. No. 51525Q

Form 990 - Instructions For Schedule J

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