Form 990 - Instructions For Schedule J


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
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
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
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
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
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
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
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


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