Instructions For Schedule J (Form 990) (Page 6 of 6) in pdf

The following benefits provided for a

provided by the employer to the

credit card) isn't material. Payments that

listed person must be reported in

employees, is so small as to make

don't qualify under the accountable plan

column (D) to the extent not reported as

accounting for it unreasonable or

rules, such as payments for which the

taxable compensation on Form W-2,

administratively impractical.

employee didn't adequately account to

box 1 or box 5, or Form 1099-MISC,

the organization, or allowances that

Working condition fringe. A

box 7.

were more than the payee spent on

working condition fringe is any property

Value of housing provided by the

serving the organization, are

or service provided to an employee to

employer, except to the extent such

compensation.

the extent that, if the employee paid for

value is a working condition fringe.

Directors and trustees are treated as

the property or service, the payment

Educational assistance.

employees for purposes of the working

would be deductible by the employee

Health insurance.

condition fringe provisions of section

under section 162 (ordinary and

Medical reimbursement programs.

132. Therefore, treat cash payments to

necessary business expense) or section

Life insurance.

directors or trustees made under

167 (depreciation).

Disability benefits.

circumstances substantially identical to

In some cases, property provided to

Long-term care insurance.

the accountable plan provisions as a

employees may be used partly for

Dependent care assistance.

section 132 working condition fringe.

business and partly for personal

Adoption assistance.

See Pub. 15-B, Employer's Tax

purposes, such as automobiles. In that

Payment or reimbursement by the

Guide to Fringe Benefits; Pub. 521,

case, the value of the personal use of

organization of (or payment of liability

Moving Expenses; and Unreimbursed

such property is taxable

insurance premiums for) any penalty,

Employee Expenses in Pub. 529,

compensation, and the value of the

tax, or expense of correction owed

Miscellaneous Deductions, for further

use for business purposes properly

under chapter 42 of the Internal

explanation of section 132 fringe

accounted for is a working condition

Revenue Code, any expense not

benefits and for determining whether a

fringe benefit. Cell phones provided to

reasonably incurred by the person in

given section 132 fringe benefit is

employees primarily for business

connection with a civil judicial or civil

available to nonemployees, such as

purposes (other than compensation) are

administrative proceeding arising out of

directors and trustees, or to persons

a working condition fringe benefit; in

the person's performance of services on

who no longer work for the organization.

such case, the employee's personal use

behalf of the organization, or any

is a de minimis fringe. See Notice

expense resulting from an act or failure

Column (F). Enter in column (F) any

2011-72, 2011-38 I.R.B. 407. See Pub.

to act with respect to which the person

payment reported in this year's column

587, Business Use of Your Home, for

has acted willfully and without

(B) to the extent such payment was

special rules regarding deductibility of

reasonable cause.

already reported as deferred

home expenses for business use.

compensation to the listed person in a

The list above is not all-inclusive.

prior Form 990, 990-EZ, or 990-PF. For

Accountable plan amounts. An

Disregarded benefits. Disregarded

this purpose, the amount must have

accountable plan is a reimbursement or

benefits under Regulations section

been reported as compensation

other expense allowance arrangement

53.4958-4(a)(4) need not be reported in

specifically for the listed person on the

that meets each of the following rules.

column (D). Disregarded benefits

prior form.

1. The expenses covered under the

generally include fringe benefits

plan must be reasonable employee

excluded from gross income under

Part III. Supplemental

business expenses that are deductible

section 132. These benefits include the

Information

under section 162 or other provisions of

following.

Use Part III to provide narrative

the Code.

No-additional cost service.

information, explanations, or

Qualified employee discount.

2. The employee must adequately

descriptions required for Part I, lines 1a,

De minimis fringe.

account to the employer for the

1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and

Reimbursements under an

expenses within a reasonable period of

8, and for Part II. List in Part III the name

accountable plan.

time.

of each unrelated organization that

Working condition fringe.

3. The employee must return any

provided compensation to persons

Qualified transportation fringe.

excess allowance or reimbursement

listed in Form 990, Part VII, Section A;

Qualified moving expense

within a reasonable period of time. See

the type and amount of compensation

reimbursement.

Regulations section 1.62-2 and Pub.

the unrelated organization paid or

Qualified retirement planning

535, Business Expenses, for

accrued; and the person receiving or

services.

explanations of accountable plans.

accruing such compensation. Also use

Qualified military base realignment

Part III to provide other narrative

and closure fringe.

The method by which benefits under

explanations and descriptions, as

an accountable plan are provided

De minimis fringe. A de minimis

applicable. Identify the specific part and

(whether reimbursement, cash

fringe is a property or service the value

line(s) that the response supports.

advances with follow-up accounting, or

of which, after taking into account the

charge by the employee on company

frequency with which similar fringes are

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2017 Instructions for Schedule J (Form 990)

Instructions For Schedule J (Form 990) Page 6

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