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An interested person for purposes of

special rules under Section 4958 Excess

Excess benefit transactions reported

Parts II-IV does not include a section

Benefit Transactions in Appendix G in the

in Schedule L, Part I.

501(c)(3) organization, an exempt

Instructions for Form 990, or Appendix E

Advances under an accountable plan

organization with the same tax-exempt

in the Instructions for Form 990-EZ.

as described in the instructions for Part II

status (for example, section 501(c)(3) or

of Schedule J (Form 990), Compensation

Applicable tax-exempt organizations

527 status) as the filing organization, or a

Information.

are generally limited to organizations

governmental unit or instrumentality.

Pledges receivable that would qualify

which (without regard to any excess

Treat as a section 501(c)(3) organization a

as charitable contributions when paid.

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

foreign organization for which the filing

Accrued but unpaid compensation

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

organization has made a reasonable

owed by the organization.

organizations, or organizations that had

judgment (or has an opinion of U.S.

Loans from a credit union made to an

such status at any time during the 5-year

counsel) that the foreign organization is

period ending on the date of the excess

interested person on the same terms as

described in section 501(c)(3).

offered to other members of the credit

benefit transaction.

union.

Reasonable effort. The organization is

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

Tax-exempt bonds purchased from

not required to provide information about a

501(c)(29) organizations should refer to

the filing organization and held by an

transaction if it is unable to secure

the instructions for Form 990, Part IV, lines

interested person, so long as the

sufficient information to conclude that the

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

interested person purchased the bonds on

transaction is reportable after making a

line 40b) before completing Part I. For

the same terms as offered to the general

reasonable effort to obtain such

more information on excess benefit

public.

information. An example of a reasonable

transactions, section 4958, and special

Deposits into a bank account (when the

effort is for the organization to distribute a

rules for donor advised funds and

bank is an interested person) in the

questionnaire annually to each person that

supporting organizations, see Appendix G

ordinary course of business, on the same

it believes may be an interested person,

in the Instructions for Form 990 (or

terms as the bank offers to the general

as described earlier, requesting

Appendix E in the Instructions for Form

public.

information relevant to determining

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

Receivables for a section 501(c)(9)

whether a transaction is reportable. The

for Your Organization.

voluntary employees' beneficiary

questionnaire may include the name and

Line 2. Enter the amount of excise tax

organization from a sponsoring

title of each person reporting information,

incurred by disqualified persons and

organization or contributing employer of

blank lines for the person’s signature and

organization managers under section

the VEBA, if those receivables were

signature date, and the pertinent

4958 for the transactions reported on

created in the ordinary course of business

instructions and definitions for Schedule L

line 1, whether or not assessed by the

and have been due for 90 days or fewer.

interested persons and transactions.

IRS, unless abated. Form 4720, Return of

Receivables outstanding that were

Certain Excise Taxes Under Chapters 41

Part I. Excess Benefit

created in the ordinary course of the

and 42 of the Internal Revenue Code,

organization's business on the same

Transactions

must be filed to report and pay the tax on

terms as offered to the general public

excess benefit transactions.

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

(such as receivables for medical services

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

provided by a hospital to an officer of the

Part II. Loans to and/or

hospital).

Line 1. For each excess benefit

From Interested Persons

transaction involving an organization

Column (a). Identify the interested

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

Report details on loans, including salary

person that was the debtor or creditor on

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

advances, payments made pursuant to a

the loan.

Identify in column (a) the disqualified

split-dollar life insurance arrangement that

Column (b). Identify the relationship

person(s) that received an excess benefit

are treated as loans under Regulations

between the interested person and the

in the transaction;

section 1.7872-15, and other advances

organization.

Identify in column (b) the relationship

and receivables (referred to collectively as

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

between the disqualified person and the

Column (c). Describe the organization's

organization (for example, “officer” or

IV, line 26 (including receivables reported

purpose for engaging in the transaction.

“family member of director”);

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

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

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

Describe the transaction in column (c);

whichever is applicable.

990, Part X, line 5, 6, or 22. Report only

State in column (d) whether the

loans between the organization and

transaction has been corrected; and

Column (e). Enter the original dollar

interested persons that are outstanding as

Identify in Part V the organization

amount owed (the loan principal).

of the end of the organization's tax year.

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

Column (f). Enter the balance due as of

Report each loan separately, regardless of

transaction, knowing that it was an excess

the end of the organization's tax year,

amount.

benefit transaction.

including outstanding principal, accrued

In addition to loans originally made

interest, and any applicable penalties and

Excess benefit transaction. An excess

between the organization and an

collection costs. For Form 990 filers, the

benefit transaction generally is a

interested person, report also loans

sum total indicated in column (d) must

transaction in which an applicable

originally between the organization and a

tax-exempt organization directly or

equal the total of Form 990, Part X,

third party or between an interested

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

indirectly provides to or for the use of a

person and a third party that were

(for amounts owed to the organization),

disqualified person an economic benefit

transferred so as to become a debt

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

the value of which exceeds the value of

outstanding between the organization and

by the organization).

the consideration received by the

an interested person.

organization for providing such benefit.

Column (g). Answer “Yes” if any

For special section 4958 rules governing

Exceptions. Do not report the following

payment by the debtor was past due as of

transactions with donor advised funds

in Part II:

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

and supporting organizations, see the

Instructions for Schedule L

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Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2014 Page 2

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