Looking for a Form 990-bl Templates? Download it for free!

Line 9. Enter the administrative expenses (including legal, accounting,

excess compensation. For purposes of the preceding sentence, the

actuarial, and trustee expenses) for the year other than salaries and

FMV:

wages paid to trustees and other employees.

1. For the initial taxes imposed by section 4951(a), is determined

as of the date on which the act of self-dealing occurs; and

Line 10. Attach a schedule, listing by type and amount, all allowable

2. For additional taxes imposed by section 4951(b), is the highest

deductions that are not deductible elsewhere on Form 990-BL. Enter

FMV during the taxable period.

the total of these deductions on line 10. See Regulations section

1.501(c)(21)-1 for additional information.

Correction. The terms “correction” and “correct” mean, for any act of

self-dealing, undoing the transaction to the extent possible, but in any

Part II—Balance Sheets

case placing the trust in a financial position not worse than that in which

Complete the balance sheets on the basis of the accounting method

it would be if the disqualified person were dealing under the highest

regularly used by the trust in keeping its books and records.

fiduciary standards.

Line 19. Enter only liabilities of the trust as of the first and last days of

Disqualified Person. The term “disqualified person” means, for a trust

the tax year of the trust. Include payments for approved black lung

described in section 501(c)(21), a person who is:

claims that are due but not paid, accrued trustee fees, etc. Do not

1. A contributor to the trust,

include amounts for black lung claims being contested, the present

2. A trustee of the trust,

value of payments for approved claims, or the estimated liability for

3. An owner of more than 10% of:

future claims.

a. The total combined voting power of a corporation,

Line 21. Enter the total of lines 19 and 20. That figure must equal the

b. The profits interest of a partnership, or

figure for total assets reported on line 18 for both the beginning and end

c. The beneficial interest of a trust or unincorporated enterprise,

of year.

which is a contributor to the trust,

4. An officer, director, or employee of a person who is a contributor

Part III—Questionnaire

to the trust,

5. The spouse, ancestor, lineal descendant, or spouse of a lineal

General Instructions

descendant of an individual described in 1, 2, 3, or 4,

6. A corporation of which persons described in 1, 2, 3, 4, or 5 own

The Black Lung Benefits Revenue Act of 1977 imposes excise taxes

more than 35% of the total combined voting power,

and penalties on acts of self-dealing between trusts and disqualified

7. A partnership in which persons described in 1, 2, 3, 4, or 5 own

persons, and on taxable expenditures made by the trusts. These taxes

more than 35% of the profits interest, or

and penalties apply to the trust (section 4952), trustees (sections 4951

8. A trust or estate in which persons described in 1, 2, 3, 4, or 5

and 4952), and self-dealers (section 4951). The purpose of the

hold more than 35% of the beneficial interest.

questions is to determine whether there is any initial tax due under

either of these two sections.

For purposes of 3a and 6, indirect stockholdings are taken into

account if they would be taken into account under section 267(c),

Definitions

except that, for purposes of this paragraph, section 267(c)(4) is treated

as providing that the members of the family of an individual are only

Self-dealing (Section 4951)

those individuals described in 5. For purposes of 3b and c, 7, and 8, the

Self-dealing. For purposes of section 4951, the term “self-dealing”

ownership of profits or beneficial interests is determined by the rules for

means any direct or indirect:

constructive ownership of stock provided in section 267(c) (other than

•

Sale, exchange, or leasing of real or personal property between a

paragraph (3)), except that section 267(c)(4) is treated as providing that

trust described in section 501(c)(21) and a disqualified person;

the members of the family of an individual are only those individuals

•

Lending of money or other extension of credit between such a trust

described in 5.

and a disqualified person;

•

Payment of Benefits. For purposes of section 4951, a payment out of

Furnishing of goods, services, or facilities between such a trust and a

assets or income of a trust described in section 501(c)(21) for the

disqualified person;

•

purposes described in sections 501(c)(21)(A)(i)(I) and

Payment of compensation (or payment or reimbursement of

501(c)(21)(A)(i)(IV) is not considered an act of self-dealing.

expenses) by such a trust to a disqualified person; and

•

Transfers to, or use by or for the benefit of, a disqualified person of

Taxable Expenditures (Section 4952)

the income or assets of such a trust.

Taxable expenditure. For purposes of section 4952, the term “taxable

Special Rules. For purposes of section 4951:

expenditure” means any amount paid or incurred by a trust described in

•

The transfer of personal property by a disqualified person to such a

section 501(c)(21) other than for a purpose specified in that section.

trust is treated as a sale or exchange if the property is subject to a

Correction. The terms “correction” and “correct” mean, with respect to

mortgage or similar lien;

•

any taxable expenditure, placing the trust in a financial position not

If a bank or an insured credit union is a trustee of the trust or

worse than that in which it would have been if the taxable expenditure

otherwise is a “disqualified person” with respect to the trust, any amount

had not been made:

invested in checking accounts, savings accounts, certificates of deposit,

1. By recovering all or part of the expenditure to the extent recovery

or other time or demand deposits in that bank or credit union constitutes

is possible; and

a lending of money;

•

2. When full recovery is not possible, by contributions by the person

The furnishing of goods, services, or facilities by a disqualified person

or persons whose liabilities for black lung benefit claims (as defined in

to such a trust is not an act of self-dealing if the furnishing is without

section 192(e)) are to be paid out of the trust.

charge and if the goods, services, or facilities so furnished are used

exclusively for the purposes specified in section 501(c)(21)(A); and

•

Taxable Period. The term “taxable period” means, with respect to any

The payment of compensation (and the payment or reimbursement of

taxable expenditure, the period beginning with the date on which the

expenses) by such a trust to a disqualified person for personal services

taxable expenditure occurs and ending on the earlier of:

that are reasonable and necessary to carry out the exempt purpose of

the trust is not an act of self-dealing if the compensation (or payment or

1. The date of mailing a notice of deficiency under section 6212

with respect to the tax imposed by section 4952(a)(1), or

reimbursement) is not excessive. See Regulations section 53.4951-1

2. The date on which the tax imposed by section 4952(a)(1) is

for additional information.

assessed.

Taxable Period. The term “taxable period” means, with respect to any

act of self-dealing, the period beginning with the date on which the act

Specific Instructions

of self-dealing occurs and ending on the earliest of:

1. The date of mailing of a notice of deficiency under section 6212,

Line 22. A “conformed” copy is one that agrees with the original

with respect to the tax imposed by section 4951(a)(1),

document, and all amendments to it. If the copies are not signed, they

2. The date on which the tax imposed by section 4951(a)(1) is

must be accompanied by a written declaration signed by an officer

assessed, or

authorized to sign for the organization certifying that they are complete

3. The date on which correction of the act of self-dealing is

and accurate copies of the original documents.

completed.

Chemically or photographically reproduced copies of articles of

incorporation showing the certification of an appropriate State official

Amount Involved. The term “amount involved” means, for any act of

need not be accompanied by such a declaration. See Rev. Proc. 68-14,

self-dealing, the greater of the amount of money and the fair market

1968-1 C.B. 768, for additional information.

value (FMV) of the other property given or the amount of money and the

FMV of the other property received. However, in the case of services

Line 23. If you answered “Yes” to 23a(1), (2), (3), (4), or (5) and “No”

described in section 4951(d)(2)(C), the amount involved is only the

to 23b, notify each self-dealer and trustee who may be liable for initial

-3-

Instructions For Form 990-Bl - Information And Initial Excise Tax Return For Black Lung Benefit Trusts And Certain Related Persons - Internal Revenue Service Page 3

Related Articles

Related forms

Related Categories