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2012

Department of the Treasury

Internal Revenue Service

Instructions for Schedule L

(Form 990 or 990-EZ)

Transactions With Interested Persons

complete all or a part of Schedule L and

Section references are to the Internal Revenue

Identify the disqualified person(s) that

Code unless otherwise noted.

must attach Schedule L to Form 990 or

received an excess benefit in the

990-EZ. If an organization is not required

transaction;

Future Developments

to file Form 990 or 990-EZ but chooses to

Identify the relationship between the

do so, it must file a complete return and

disqualified person and the organization

provide all of the information requested,

(for example, “officer” or “family member

For the latest information about

including the required schedules.

of director”);

developments related to Form 990 and its

Identify the organization manager(s), if

instructions, such as legislation enacted

Specific Instructions

any, that participated in the transaction,

after they were published, go to

knowing that it was an excess benefit

transaction;

For Parts I, II, and III, report all

General Instructions

Describe the transaction; and

transactions regardless of amount. Part IV

State whether the transaction has been

instructions provide individual and total

Note. Terms in bold are defined in the

corrected.

reporting thresholds below which reporting

Glossary of the Instructions for Form 990.

is not required for an interested person.

Excess benefit transaction. An excess

Purpose of Schedule

Parts III and IV contain separate

benefit transaction generally is a

reasonable effort instructions which

transaction in which an applicable

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

organizations may rely on to satisfy

tax-exempt organization directly or

by an organization that files Form 990 or

reporting requirements for those Parts.

indirectly provides to or for the use of a

990-EZ to provide information on certain

disqualified person an economic benefit

financial transactions or arrangements

There is a separate definition of interested

the value of which exceeds the value of

between the organization and

person for each part of the schedule, so a

the consideration received by the

disqualified person(s) under section

person who is an interested person for

organization for providing such benefit.

4958 or other interested persons.

one part may not be an interested person

For special section 4958 rules governing

Schedule L is also used to determine

for other parts of the schedule. Each

transactions with donor advised funds

whether a member of the organization's

reportable transaction is to be reported in

and supporting organizations, see the

governing body is an independent

only one part of Schedule L, as described

special rules under Section 4958 Excess

member for purposes of Form 990, Part

below.

Benefit Transactions in Appendix G in the

VI, line 1b.

Instructions for Form 990, or Appendix E

Part I. Excess Benefit

Supplemental information. Parts I-IV

in the Instructions for Form 990-EZ.

Transactions

can be duplicated if additional space is

Applicable tax-exempt organizations

needed. Also, Part V may be used to

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

are generally limited to organizations

explain a transaction or to provide

and 501(c)(4) organizations.)

which (without regard to any excess

additional information.

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

Line 1. For each excess benefit

charities or section 501(c)(4)

Who Must File

transaction involving an organization

organizations, or organizations that had

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

The chart at the bottom of this page

such status at any time during the 5-year

regardless of amount:

provides which organizations must

period ending on the date of the excess

benefit transaction.

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

Type of filer

IF you answer “Yes” to

THEN you must

. . . .

organizations should refer to the

complete

. . . . . . . . . . .

instructions for Form 990, Part IV, lines

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

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

Schedule L, Part I.

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

organization

(regarding excess benefit

line 40b) before completing Part I. For

transactions)

more information on excess benefit

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

Form 990-EZ, Part V, line 40b

Schedule L, Part I.

transactions, section 4958, and special

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 with excise

All organizations

Form 990, Part IV, line 27

Schedule L, Part III.

tax incurred by organization managers or

(regarding grants)

disqualified persons under section

All organizations

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

Schedule L, Part IV.

4958, whether or not assessed by the IRS,

28c (regarding business

unless abated. Form 4720, Return of

transactions)

Nov 09, 2012

Cat. No. 51522J

Instructions For Schedule L (Form 990 Or 990-Ez) - Transactions With Interested Persons - 2012

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