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2013

Department of the Treasury

Internal Revenue Service

Instructions for Schedule L

(Form 990 or 990-EZ)

Transactions With Interested Persons

must attach Schedule L to Form 990 or

Section references are to the Internal Revenue

Identify the disqualified person(s) that

Code unless otherwise noted.

990-EZ. If an organization is not required

received an excess benefit in the

to file Form 990 or 990-EZ but chooses to

transaction;

Future Developments

do so, it must file a complete return and

Identify the relationship between the

provide all of the information requested,

disqualified person and the organization

For the latest information about

including the required schedules.

(for example, “officer” or “family member

developments related to Form 990 and its

of director”);

instructions, such as legislation enacted

Specific Instructions

Identify the organization manager(s), if

after they were published, go to

any, that participated in the transaction,

For Parts I, II, and III, report all

knowing that it was an excess benefit

transactions regardless of amount. Part IV

transaction;

General Instructions

instructions provide individual and total

Describe the transaction; and

Note. Terms in bold are defined in the

reporting thresholds below which reporting

State whether the transaction has been

Glossary of the Instructions for Form 990.

is not required for an interested person.

corrected.

Parts III and IV contain separate

Purpose of Schedule

Excess benefit transaction. An excess

reasonable effort instructions which

benefit transaction generally is a

organizations may rely on to satisfy

Schedule L (Form 990 or 990-EZ) is used

transaction in which an applicable

reporting requirements for those Parts.

by an organization that files Form 990 or

tax-exempt organization directly or

990-EZ to provide information on certain

There is a separate definition of interested

indirectly provides to or for the use of a

financial transactions or arrangements

person for each part of the schedule, so a

disqualified person an economic benefit

between the organization and

person who is an interested person for

the value of which exceeds the value of

disqualified person(s) under section

one part may not be an interested person

the consideration received by the

4958 or other interested persons.

for other parts of the schedule. Each

organization for providing such benefit.

Schedule L is also used to determine

reportable transaction is to be reported in

For special section 4958 rules governing

whether a member of the organization's

only one part of Schedule L, as described

transactions with donor advised funds

governing body is an independent

below.

and supporting organizations, see the

member for purposes of Form 990, Part

special rules under Section 4958 Excess

VI, line 1b.

Part I. Excess Benefit

Benefit Transactions in Appendix G in the

Supplemental information. Parts I-IV

Instructions for Form 990, or Appendix E

Transactions

can be duplicated if additional space is

in the Instructions for Form 990-EZ.

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

needed. Also, Part V may be used to

Applicable tax-exempt organizations

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

explain a transaction or to provide

are generally limited to organizations

additional information.

Line 1. For each excess benefit

which (without regard to any excess

transaction involving an organization

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

Who Must File

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

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

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

organizations, or organizations that had

The chart at the bottom of this page

provides which organizations must

such status at any time during the 5-year

complete all or a part of Schedule L and

period ending on the date of the excess

benefit transaction.

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

Type of filer

IF you answer “Yes” to

THEN you must

. . . .

501(c)(29) organizations should refer to

complete

. . . . . . . . . . .

the instructions for Form 990, Part IV, lines

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

Form 990, Part IV, line 25a or 25b

Schedule L, Part I.

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

501(c)(29) organization

(regarding excess benefit

line 40b) before completing Part I. For

transactions)

more information on excess benefit

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

Form 990-EZ, Part V, line 40b

Schedule L, Part I.

transactions, section 4958, and special

501(c)(29) organization

(regarding excess benefit

rules for donor advised funds and

transactions)

supporting organizations, see Appendix G

in the Instructions for Form 990 (or

All organizations

Form 990, Part IV, line 26

Schedule L, Part II.

Appendix E in the Instructions for Form

(regarding loans)

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

All organizations

Form 990-EZ, Part V, line 38a

Schedule L, Part II.

for Your Organization.

(regarding loans)

Line 2. Enter the amount of excise tax

All organizations

Form 990, Part IV, line 27

Schedule L, Part III.

incurred by disqualified persons and

(regarding grants)

organization managers under section

All organizations

Form 990, Part IV, line 28a, 28b, or

Schedule L, Part IV.

4958 for the transactions reported on

28c (regarding business

line 1, whether or not assessed by the

transactions)

Sep 04, 2013

Cat. No. 51522J

Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2013

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