Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2010

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2010
Department of the Treasury
Internal Revenue Service
Instructions for Schedule L
(Form 990 or 990-EZ)
Transactions With Interested Persons
Specific Instructions
State whether the transaction has been
Section references are to the Internal
corrected.
Revenue Code unless otherwise noted.
For Parts I, II, and III, report all
Excess benefit transaction. An excess
General Instructions
transactions regardless of amount. Part
benefit transaction generally is a
IV instructions provide individual and
transaction in which an applicable
aggregate reporting thresholds below
tax-exempt organization directly or
Note. Terms in bold are defined in the
which reporting is not required with
indirectly provides to or for the use of a
Glossary of the Instructions for Form 990.
respect to an interested person. Parts III
disqualified person an economic benefit
and IV contain separate reasonable
Purpose of Schedule
the value of which exceeds the value of
effort instructions which organizations
the consideration received by the
Schedule L (Form 990 or 990-EZ) is used
may rely on to satisfy reporting
organization for providing such benefit.
by an organization that files Form 990 or
requirements for those Parts.
For special section 4958 rules governing
990-EZ to provide information on certain
transactions with donor advised funds
There is a separate definition of
financial transactions or arrangements
and supporting organizations, see the
interested person for each part of the
between the organization and
special rules under Section 4958 Excess
schedule, so a person who is an
disqualified person(s) under section
Benefit Transactions in Appendix G in the
interested person for one part may not be
4958 or other interested persons.
Instructions for Form 990 or Appendix E
an interested person for other parts of the
Schedule L is also used to determine
in the Instructions for Form 990-EZ.
schedule. Each reportable transaction is
whether a member of the organization’s
Applicable tax-exempt organizations are
to be reported in only one part of
governing body is an independent
generally limited to organizations which
Schedule L, as described below.
member for purposes of Form 990, Part
(without regard to any excess benefit) are
VI, line 1b.
section 501(c)(3) public charities or
Part I. Excess Benefit
section 501(c)(4) organizations, or
Supplemental information. Parts I-IV
Transactions
organizations that had such status at any
can be duplicated if additional space is
time during the 5-year period ending on
needed. Also, Part V may be used to
(To be completed by section 501(c)(3)
the date of the excess benefit transaction.
explain a transaction or to provide
and 501(c)(4) organizations.)
Section 501(c)(3) and section
additional information.
Line 1. For each excess benefit
501(c)(4) organizations should refer to the
transaction involving the organization if it
instructions for Form 990, Part IV, line 25
Who Must File
is described in section 501(c)(3) or
(or Form 990-EZ, Part V, line 40b) before
501(c)(4), regardless of amount:
The chart at the bottom of this page sets
completing Part I. For more information
Identify the disqualified person(s) that
forth which organizations must complete
on excess benefit transactions, section
received an excess benefit in the
4958, and special rules for donor advised
all or a part of Schedule L and must
transaction;
funds and supporting organizations, see
attach Schedule L to Form 990 or
Appendix G in the Instructions for Form
990-EZ. If an organization is not required
Identify the organization manager(s), if
990 (or Appendix E in the Instructions for
to file Form 990 or 990-EZ but chooses to
any, that participated in the transaction,
Form 990 – EZ) and Pub. 557,
do so, it must file a complete return and
knowing that it was an excess benefit
Tax-Exempt Status for Your Organization.
provide all of the information requested,
transaction;
including the required schedules.
Describe the transaction; and
Line 2. Enter the amount of taxes
imposed under section 4958 on
organization managers or disqualified
Type of filer
IF you answer “Yes” to . .
THEN you must complete
persons, whether or not assessed by the
IRS, unless abated. Form 4720, Return of
Section 501(c)(3) or 501(c)(4)
Form 990, Part IV, line 25a or
Schedule L, Part I.
Certain Excise Taxes Under Chapters 41
25b (regarding excess benefit
organization
and 42 of the Internal Revenue Code,
transactions)
must be filed to report and pay the tax on
Section 501(c)(3) or 501(c)(4)
Form 990-EZ, Part V, line 40b
Schedule L, Part I.
excess benefit transactions.
organization
(regarding excess benefit
Part II. Loans to and/or
transactions)
From Interested Persons
All organizations
Form 990, Part IV, line 26
Schedule L, Part II.
(regarding loans)
Report details on loans, including salary
All organizations
Form 990-EZ, Part V, line 38a
Schedule L, Part II.
advances and other advances and
(regarding loans)
receivables (referred to collectively as
“loans”), as described in Form 990, Part
All organizations
Form 990, Part IV, line 27
Schedule L, Part III.
IV, line 26 or Form 990-EZ, Part V, line
(regarding grants)
38a. Report only loans between the
organization and interested persons that
All organizations
Form 990, Part IV, line 28a, 28b, Schedule L, Part IV.
are outstanding as of the end of the
or 28c (regarding business
organization’s tax year. Report each loan
transactions)
separately and regardless of amount.
Cat. No. 51522J

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