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sufficient information to conclude that the

Applicable tax-exempt organizations

Pledges receivable that would qualify

transaction is reportable after making a

are generally limited to organizations

as charitable contributions when paid.

reasonable effort to obtain such

which (without regard to any excess

Accrued but unpaid compensation

information. An example of a reasonable

benefit) are section 501(c)(3) public

owed by the organization.

effort is for the organization to distribute a

charities, section 501(c)(4) or 501(c)(29)

Loans from a credit union made to an

questionnaire annually to each person that

organizations, or organizations that had

interested person on the same terms as

it believes may be an interested person,

such status at any time during the 5-year

offered to other members of the credit

as described earlier, requesting

period ending on the date of the excess

union.

information relevant to determining

benefit transaction.

Tax-exempt bonds purchased from

whether a transaction is reportable. The

the filing organization and held by an

Section 501(c)(3), 501(c)(4), and

questionnaire may include the name and

interested person, so long as the

501(c)(29) organizations should refer to

title of each person reporting information,

interested person purchased the bonds on

the instructions for Form 990, Part IV, lines

blank lines for the person’s signature and

the same terms as offered to the general

25a-25b (or Form 990-EZ, Part V,

signature date, and the pertinent

public.

line 40b) before completing Part I. For

instructions and definitions for Schedule L

Deposits into a bank account (when the

more information on excess benefit

interested persons and transactions.

transactions, section 4958, and special

bank is an interested person) in the

rules for donor advised funds and

ordinary course of business, on the same

Example. A substantial contributor to the

supporting organizations, see Appendix G

terms as the bank offers to the general

organization states that he would like Mr.

in the Instructions for Form 990 (or

public.

X and Ms. Y to be beneficiaries of a grant.

Appendix E in the Instructions for Form

Receivables for a section 501(c)(9)

The organization inquires of the

990-EZ) and Pub. 557, Tax-Exempt Status

VEBA from a sponsoring organization or

substantial contributor whether Mr. X or

for Your Organization.

contributing employer of the VEBA, if

Ms. Y are interested persons with respect

those receivables were created in the

to the organization because of a family or

Line 2. Enter the amount of excise tax

ordinary course of business and have

business relationship they have with the

incurred by disqualified persons and

been due for 90 days or fewer.

substantial contributor (using the pertinent

organization managers under section

Receivables outstanding that were

instructions and definitions), and the

4958 for the transactions reported on

created in the ordinary course of the

substantial contributor replies in writing

line 1, whether or not assessed by the

organization's business on the same

that they are not. Whether they actually

IRS, unless abated. Form 4720, Return of

terms as offered to the general public

are interested persons or not, the

Certain Excise Taxes Under Chapters 41

(such as receivables for medical services

organization has made a reasonable effort

and 42 of the Internal Revenue Code,

provided by a hospital to an officer of the

in this situation.

must be filed to report and pay the tax on

hospital).

excess benefit transactions.

Part I. Excess Benefit

Column (a). Identify the interested

Part II. Loans to and/or

Transactions

person that was the debtor or creditor on

From Interested Persons

the loan.

(To be completed by section 501(c)(3),

501(c)(4), and 501(c)(29) organizations.)

Column (b). Identify the relationship

Report details on loans, including salary

between the interested person and the

advances, payments made pursuant to a

Line 1. For each excess benefit

organization.

split-dollar life insurance arrangement that

transaction involving an organization

are treated as loans under Regulations

described in section 501(c)(3), 501(c)(4),

Column (c). Describe the organization's

section 1.7872-15, and other advances

or 501(c)(29), regardless of amount:

purpose for engaging in the loan.

and receivables (referred to collectively as

Identify in column (a) the disqualified

Column (d). Check either “To” or “From”,

“loans”), as described in Form 990, Part

person(s) that received an excess benefit

whichever is applicable.

IV, line 26 (including receivables reported

in the transaction;

on Form 990, Part X, lines 5, 6, or 22), in

Identify in column (b) the relationship

Column (e). Enter the original dollar

Form 990-EZ, Part V, line 38a or in Form

between the disqualified person and the

amount owed (the loan principal).

990, Part IV, line 26 (if the organization

organization (for example, “officer” or

Column (f). Enter the balance due as of

reported an amount on Form 990, Part X,

“family member of director”);

the end of the organization's tax year,

lines 5,6, or 22). Report only loans

Describe the transaction in column (c);

including outstanding principal, accrued

between the organization and interested

State in column (d) whether the

interest, and any applicable penalties and

persons that are outstanding as of the end

transaction has been corrected; and

collection costs. For Form 990 filers, the

of the organization's tax year. Report

Identify in Part V the organization

sum total indicated in column (f) must

each loan separately, regardless of

manager(s), if any, that participated in the

equal the total of Form 990, Part X,

amount.

transaction, knowing that it was an excess

Balance Sheet, column (B), lines 5 and 6

benefit transaction.

In addition to loans originally made

(for amounts owed to the organization),

between the organization and an

and column (B), line 22 (for amounts owed

Excess benefit transaction. An excess

interested person, report also loans

by the organization).

benefit transaction generally is a

originally between the organization and a

transaction in which an applicable

Column (g). Answer “Yes” if any

third party or between an interested

tax-exempt organization directly or

payment by the debtor was past due as of

person and a third party that were

indirectly provides to or for the use of a

the end of the organization's tax year, or if

transferred so as to become a debt

disqualified person an economic benefit

the debtor otherwise is in default under the

outstanding between the organization and

the value of which exceeds the value of

terms and conditions of the loan.

an interested person.

the consideration received by the

Column (h). State whether the

organization for providing such benefit.

Exceptions. Do not report the following

organization's governing body (or a

For special section 4958 rules governing

in Part II:

committee of the governing body)

transactions with donor advised funds

Excess benefit transactions reported

approved the loan transaction.

and supporting organizations, see the

in Schedule L, Part I.

special rules under Section 4958 Excess

Advances under an accountable plan

Column (i). State whether the loan is

Benefit Transactions in Appendix G in the

as described in the instructions for Part II

evidenced by a promissory note or other

Instructions for Form 990, or Appendix E

of Schedule J (Form 990), Compensation

written agreement signed by the debtor.

in the Instructions for Form 990-EZ.

Information.

-2-

Instructions for Schedule L

Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2015 Page 2

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