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

The following benefits provided for a

frequency with which similar fringes are

charge by the employee on company

listed person must be reported in

provided by the employer to the

credit card) isn't material. Payments that

column (D) to the extent not reported as

employees, is so small as to make

don't qualify under the accountable plan

taxable compensation on Form W-2,

accounting for it unreasonable or

rules, such as payments for which the

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

administratively impractical.

employee didn't adequately account to

box 7.

the organization, or allowances that

Working condition fringe. A

were more than the payee spent on

Value of housing provided by the

working condition fringe is any property

serving the organization, are

employer, except to the extent such

or service provided to an employee to

compensation.

value is a working condition fringe.

the extent that, if the employee paid for

Educational assistance.

Directors and trustees are treated as

the property or service, the payment

Health insurance.

employees for purposes of the working

would be deductible by the employee

Medical reimbursement programs.

condition fringe provisions of section

under section 162 (ordinary and

Life insurance.

132. Therefore, treat cash payments to

necessary business expense) or section

directors or trustees made under

Disability benefits.

167 (depreciation).

circumstances substantially identical to

Long-term care insurance.

In some cases, property provided to

the accountable plan provisions as a

Dependent care assistance.

employees may be used partly for

section 132 working condition fringe.

Adoption assistance.

business and partly for personal

Payment or reimbursement by the

See Pub. 15-B, Employer's Tax

purposes, such as automobiles. In that

organization of (or payment of liability

Guide to Fringe Benefits; Pub. 521,

case, the value of the personal use of

insurance premiums for) any penalty,

Moving Expenses; and Unreimbursed

such property is taxable

tax, or expense of correction owed

Employee Expenses in Pub. 529,

compensation, and the value of the

under chapter 42 of the Internal

Miscellaneous Deductions, for further

use for business purposes properly

Revenue Code, any expense not

explanation of section 132 fringe

accounted for is a working condition

reasonably incurred by the person in

benefits and for determining whether a

fringe benefit. Cell phones provided to

connection with a civil judicial or civil

given section 132 fringe benefit is

employees primarily for business

administrative proceeding arising out of

available to nonemployees, such as

purposes (other than compensation) are

the person's performance of services on

directors and trustees, or to persons

a working condition fringe benefit; in

behalf of the organization, or any

who no longer work for the organization.

such case, the employee's personal use

expense resulting from an act or failure

is a de minimis fringe. See Notice

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

to act with respect to which the person

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

payment reported in this year's column

has acted willfully and without

587, Business Use of Your Home, for

(B) to the extent such payment was

reasonable cause.

special rules regarding deductibility of

already reported as deferred

The list above is not all-inclusive.

home expenses for business use.

compensation to the listed person in a

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

Disregarded benefits. Disregarded

Accountable plan amounts. An

this purpose, the amount must have

benefits under Regulations section

accountable plan is a reimbursement or

been reported as compensation

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

other expense allowance arrangement

specifically for the listed person on the

column (D). Disregarded benefits

that meets each of the following rules.

prior form.

generally include fringe benefits

1. The expenses covered under the

excluded from gross income under

plan must be reasonable employee

Part III. Supplemental

section 132. These benefits include the

business expenses that are deductible

Information

following.

under section 162 or other provisions of

No-additional cost service.

Use Part III to provide narrative

the Code.

Qualified employee discount.

information, explanations, or

2. The employee must adequately

De minimis fringe.

descriptions required for Part I, lines 1a,

account to the employer for the

Reimbursements under an

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

expenses within a reasonable period of

accountable plan.

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

time.

Working condition fringe.

of each unrelated organization that

3. The employee must return any

Qualified transportation fringe.

provided compensation to persons

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

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2016 Instructions for Schedule J (Form 990)

Instructions For Schedule J Form 990 Page 6

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