IRS Form 990-T is the Exempt Organization Business Income Tax Return that a tax-exempt organization, an IRA, or certain other trusts must file when they earn $1,000 or more of gross income from a regularly conducted unrelated trade or business. The form reports that income, figures the unrelated business income tax (UBIT), and tells the IRS how much your group owes or gets back.
This return matters because being tax-exempt does not make every dollar tax-free. When a charity, a college, or a retirement account runs a side business that has nothing to do with its mission, the profit can be taxed at the 21% corporate rate. Each year, tax-exempt groups file hundreds of thousands of Forms 990-T with the IRS, and a single missed Schedule A or wrong box can trigger a hold, a penalty, or a costly audit.
Here is what you will learn in this guide:
- 📋 Who must file Form 990-T and the exact $1,000 gross-income trigger that pulls you in.
- 🧾 A line-by-line walkthrough of every Part and box on the 2025 form and its Schedule A.
- 👥 Three full filled-out examples for a charity, a university, and an IRA.
- 💸 The real deadlines, fees, and penalties that hit late or wrong filers.
- ⚠️ The most common mistakes filers make and the simple fixes that prevent them.
What the Form Is and Who Must File It
Form 990-T is the federal return that tax-exempt organizations use to report and pay tax on unrelated business taxable income (UBTI). The form carries the official title Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)), and the version covered here is the 2025 Form 990-T (created 1/12/26) with 2025 instructions dated February 3, 2026. Always check the year printed in the top-right corner so you know you have the right edition before you start.
The law behind the form is Internal Revenue Code sections 511 through 514, which impose tax on income from a trade or business that is regularly carried on and not substantially related to the group’s exempt purpose. In plain English, the IRS taxes profit that looks like ordinary business profit, even when a nonprofit earns it. If you ignore this rule, the IRS can assess back taxes, interest, and penalties, and can even question your exempt status.
You must file Form 990-T if any of the following apply to you. A 501(a) exempt organization, a 529 plan, or a 529A ABLE program with gross income of $1,000 or more from a regularly conducted unrelated trade or business must file. State colleges and universities, and their wholly owned subsidiaries, with that same $1,000 of unrelated gross income must file. Trustees of IRAs, SEP IRAs, SIMPLE IRAs, Roth IRAs, Coverdell ESAs, Archer MSAs, and HSAs must file when the account has $1,000 or more of unrelated business gross income.
A common misconception is that exempt status alone excuses you from this form. It does not. Each IRA or account is treated as its own separate trust, must use its own EIN, and files its own Form 990-T once it crosses the $1,000 line. A misbelief that hurts retirement savers is that an IRA can never owe tax. In truth, an IRA that holds a master limited partnership (MLP) or a leveraged real estate fund can generate UBTI and owe tax right inside the account.
Before You Start: Documents and Information You Need
Gather everything before you open the form, because a single missing number can stall the whole return. The IRS cross-checks your entries against its own records, so accuracy on the front end saves you from notices on the back end. Use this pre-filing checklist as your launch pad.
- Employer Identification Number (EIN). The form requires an EIN in item D, and an IRA must have its own EIN; without it the return cannot be processed and will bounce.
- Your exempt status code. You enter your 501(c) paragraph or other code in item B, and the wrong code can route your return to the wrong unit and delay it.
- Book value of all assets at year-end. Item C asks for this figure, and leaving it blank flags an incomplete return.
- Group exemption number (GEN), if any. Item E needs this when you file under a parent group ruling, and a missing GEN can break the link to your parent.
- Schedule K-1s and partnership statements. These report UBTI passed through from partnerships and MLPs, and missing one understates your income.
- Profit-and-loss records for each unrelated business. You need separate income and expense totals for every distinct activity because each one gets its own Schedule A.
- Prior-year Form 990-T and NOL records. You need pre-2018 and post-2017 net operating loss carryovers for Part IV; losing track of them throws away a valid deduction.
- Estimated tax payment records. You report these on Part III, and forgetting a payment means you overpay or trigger a penalty calculation.
- Cost of goods sold figures. Gross income is gross receipts minus cost of goods sold, so you need these to test the $1,000 trigger correctly.
If any item is missing, stop and find it first. A return filed without an EIN or with a blank asset figure is treated as incomplete, and an incomplete return does not stop the late-filing clock from running.
Where to Get the Form and How to Access It
You get the official form straight from the IRS. Download the current Form 990-T PDF and the matching Schedule A (Form 990-T) from the IRS forms library. You can also visit the About Form 990-T page for recent updates, related forms, and links to the instructions.
Even though the PDF is free to view, almost no one files it on paper. For tax years covered by current law, an organization or trust defined in section 511 that needs to file Form 990-T is required to file electronically. The IRS explains this mandate on its exempt organization e-file page, and it applies to nearly every charity, college, and IRA trustee.
To e-file, you use an IRS-authorized software provider rather than uploading the PDF yourself. Several vendors handle Form 990-T and its Schedule A, including services that advertise 990-T e-filing with Schedule A. Pick a provider, create an account, enter your data through its guided screens, and transmit the return to the IRS, which sends back an electronic acceptance.
The only filers who may still mail a paper return are applicable entities that are not section 511 organizations and that file only to make an elective payment election. Those filers send the paper Form 990-T to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027. For everyone else, paper is not an option, so plan to e-file.
Step-by-Step: How to Fill Out Form 990-T Line by Line
Work the schedules first, then the main form. The instructions tell you to complete every Schedule A (Form 990-T) before you touch Part I, because the main form simply pulls totals from your schedules. The walkthrough below follows the form’s own order: the heading, then Parts I through V, then the key parts of Schedule A.
Heading: Name, Address, and Tax Year
What it asks in plain English. The top of the form asks for your organization’s legal name, mailing address, and the tax year the return covers.
How to answer it. Enter the full legal name exactly as it appears in your IRS exemption records, then the number and street, city, state, ZIP, and country. For a fiscal-year filer, fill in the “tax year beginning” and “ending” dates at the very top.
Example answer. Riverside Community Arts Center enters its name, 412 Maple Street, Suite 200, Austin, TX 78701, and leaves the calendar-year dates blank because it uses the standard year.
Nuance or edge case. If you use a P.O. box, the instructions say to enter the box only when the post office does not deliver mail to your street address.
Common mistake and consequence. Filers often enter a “doing business as” name instead of the legal name, and the mismatch with IRS records can cause the return to be rejected on e-file.
Misconception. Some filers think the name can be informal; in fact the IRS matches the name to your EIN, so the legal name is what counts.
Item B: Exempt Under Section
What it asks in plain English. Box B asks which Code section makes you exempt or which account type you are.
How to answer it. Check the right option and fill the blanks, such as 501(c)(3), or check 408(e) for an IRA, 408A for a Roth IRA, 530(a) for a Coverdell ESA, 220(e) for an Archer MSA, 529(a), or 529A.
Example answer. A public charity enters 501(c)( 3 ), while a self-directed IRA trustee checks the 408(e) box.
Nuance or edge case. A 501(c)(7) social club, a 501(c)(9) VEBA, or a 501(c)(17) trust has special investment-income rules later on Schedule A, so the code you pick here signals which parts apply.
Common mistake and consequence. Checking the wrong code can route your return to the wrong IRS unit and slow processing.
Misconception. Filers think this box is cosmetic; it actually drives the tax computation, since trusts and corporations are taxed differently.
Items C through F: Assets, EIN, Group Number, Amended
What it asks in plain English. These boxes capture your year-end asset value (C), your EIN (D), your group exemption number (E), and whether this is an amended return (F).
How to answer it. Enter the book value of all assets at year-end in C, your nine-digit EIN in D, your GEN in E if you file under a group ruling, and check F only if you are correcting a return you already filed.
Example answer. Riverside Community Arts Center enters $1,450,000 in C and 74-1234567 in D, and leaves E and F blank.
Nuance or edge case. An IRA must show its own EIN, not the owner’s Social Security number, because each account is a separate trust.
Common mistake and consequence. Entering an SSN where an EIN belongs exposes private data and causes rejection, and on a 501(c)(3) return the form is open to public inspection.
Misconception. Some assume “amended” means any change; check F only after an original return was already filed, and explain the changes in Part V.
Item G: Organization Type
What it asks in plain English. Box G asks what kind of filer you are so the form knows which tax rate to use.
How to answer it. Check one box: 501(c) corporation, 501(c) trust, 401(a) trust, Other trust, State college/university, or 6417(d)(1)(A) Applicable entity.
Example answer. A charity organized as a nonprofit corporation checks 501(c) corporation; an IRA checks Other trust.
Nuance or edge case. This box controls Part II, because corporations multiply income by 21% while trusts use the trust rate schedule.
Common mistake and consequence. Picking “corporation” when you are a trust applies the wrong rate and can overstate or understate your tax.
Misconception. Filers think IRAs are corporations; an IRA is a trust and uses the trust rates on Part II, line 2.
Items H through L: Special Claims, Schedules A Count, Affiliation, Books
What it asks in plain English. These items flag refund-only filings (H), report how many Schedules A you attach (J), ask about parent-subsidiary status (K), and name the person who keeps the books (L).
How to answer it. Check the H box only if you file solely to claim a credit or refund, enter the number of attached Schedules A in J, answer K “Yes” or “No,” and list the books-in-care-of name and phone in L.
Example answer. A university with two unrelated businesses enters 2 in item J and lists its controller in item L.
Nuance or edge case. Item I is only for a 501(c)(3) filing a consolidated return with a 501(c)(2) title-holding company, which is rare.
Common mistake and consequence. Entering the wrong count in J, or zero when you do have UBTI, signals a missing schedule and stalls the return.
Misconception. Filers think one Schedule A covers everything; you need a separate Schedule A for each separate unrelated trade or business.
Part I, Lines 1-11: Total Unrelated Business Taxable Income
What it asks in plain English. Part I gathers the income from all your Schedules A and applies a few deductions to reach your total UBTI.
How to answer it. On line 1, enter the total UBTI computed from all unrelated trades or businesses; line 2 is reserved, so add lines 1 and 2 on line 3. Enter charitable contributions on line 4, subtract to get line 5, take the net operating loss deduction on line 6, and reach line 7. Enter the specific deduction of generally $1,000 on line 8, the trust section 199A deduction on line 9, total deductions on line 10, and your final UBTI on line 11.
Example answer. Riverside Community Arts Center enters $24,000 on line 1, no contributions, a $1,000 specific deduction on line 8, and $23,000 on line 11.
Nuance or edge case. The specific deduction on line 8 is generally $1,000, but the instructions list exceptions, and you cannot use it to create or increase a loss.
Common mistake and consequence. Forgetting the $1,000 specific deduction on line 8 makes you pay tax on the first $1,000 you were allowed to exclude.
Misconception. Filers think the $1,000 specific deduction is per business; it is a single deduction for the whole organization, not one per Schedule A.
Part II, Lines 1-7: Tax Computation
What it asks in plain English. Part II turns your taxable income into a tax dollar figure.
How to answer it. If you are a corporation, multiply Part I, line 11, by 21% (0.21) on line 1. If you are a trust, figure tax on line 2 using the trust rate schedule or Schedule D (Form 1041). Add any proxy tax on line 3, other tax amounts on lines 4 through 6, and total them on line 7.
Example answer. Riverside Community Arts Center, a corporation, multiplies $23,000 by 0.21 and enters $4,830 on line 1 and line 7.
Nuance or edge case. A 501(c) trust or IRA uses the trust rates, which climb quickly and can exceed the flat corporate rate on modest income.
Common mistake and consequence. A trust that uses the 21% corporate rate by mistake usually underpays, which invites interest and penalties.
Misconception. Filers think the proxy tax on line 3 applies to everyone; it applies only to groups with certain lobbying and political expenditures under section 6033(e).
Part III: Tax and Payments
What it asks in plain English. Part III subtracts your credits and payments from the tax to show whether you owe money or get a refund.
How to answer it. Enter credits on lines 1a-1e, subtract them on line 2, add other amounts due on lines 3 and 4, then list payments on lines 6a-6k, including prior-year overpayments, estimated payments, and tax deposited with Form 8868. Show any estimated tax penalty on line 8, your tax due on line 9, your overpayment on line 10, and on line 11 split the overpayment between next year’s estimates and a refund.
Example answer. Riverside Community Arts Center enters $2,000 of estimated payments on line 6b, owes $2,830 on line 9, and attaches no Form 2220.
Nuance or edge case. If you have an overpayment on line 11 and want it direct-deposited, you must complete and attach Form 8050.
Common mistake and consequence. Skipping estimated payments when tax is $500 or more triggers the line 8 underpayment penalty under section 6655.
Misconception. Filers think an extension to file also extends time to pay; interest still runs from the original due date even with a Form 8868 extension.
Part IV: Statements Regarding Certain Activities
What it asks in plain English. Part IV asks yes/no questions about foreign accounts and foreign trusts and records your NOL carryovers.
How to answer it. Answer line 1 about foreign financial accounts and name the country if “Yes,” answer line 2 about foreign trusts, enter tax-exempt interest on line 3, your pre-2018 NOL carryovers on line 4, and your post-2017 NOL carryovers by business activity code on line 5.
Example answer. Riverside Community Arts Center checks No on lines 1 and 2 and leaves the NOL lines blank because it has no carryovers.
Nuance or edge case. A “Yes” on line 1 may require you to file FinCEN Form 114 (FBAR) separately, which is easy to overlook.
Common mistake and consequence. Mixing pre-2018 and post-2017 NOLs on the wrong lines can overstate the deduction and draw an IRS adjustment.
Misconception. Filers think small foreign accounts are exempt; the FBAR question turns on signature authority, not on the size of the balance alone.
Part V: Supplemental Information and Signature
What it asks in plain English. Part V is the open space for extra statements, and the signature block makes the return official.
How to answer it. Add any required statements in Part V, such as the reason for an amended return, then have an officer sign and date, enter the title, and answer whether the IRS may discuss the return with your paid preparer.
Example answer. The executive director signs, dates the return, and enters the title Executive Director.
Nuance or edge case. An amended return must include a Part V statement listing the changed line numbers and the reason for each change.
Common mistake and consequence. An unsigned return is not valid, so the IRS treats it as unfiled and the late-filing penalty keeps running.
Misconception. Filers think a bookkeeper can sign; only an authorized officer of the organization may sign the return.
Schedule A, Part I: Unrelated Trade or Business Income
What it asks in plain English. Schedule A reports the income and deductions for one unrelated business, and Part I lists the gross income.
How to answer it. Enter gross receipts, returns, and cost of goods sold to reach gross profit, then add income from rents, debt-financed property, controlled organizations, investment income, exploited activity, and advertising on the matching lines.
Example answer. State University enters $60,000 of advertising revenue from its alumni magazine on the advertising line.
Nuance or edge case. Gross income for the $1,000 test is gross receipts minus cost of goods sold, so a business with high cost of goods may fall below the trigger.
Common mistake and consequence. Netting expenses into Part I income hides the true gross figure and can misstate whether you even had to file.
Misconception. Filers think gaming income is net of prizes; the rules count all amounts wagered, and cash prizes are not cost of goods sold.
Schedule A, Part II: Deductions Not Taken Elsewhere
What it asks in plain English. Part II lists the expenses that directly connect to the unrelated business so you tax only the profit.
How to answer it. Enter salaries, repairs, rent, taxes, depreciation, and other expenses on their lines, and put items like cash prizes on line 14, other deductions.
Example answer. State University deducts $12,000 of magazine printing and sales staff costs against its advertising income.
Nuance or edge case. Expenses must be directly connected to the unrelated business, and shared costs must be split on a reasonable basis.
Common mistake and consequence. Deducting unrelated mission expenses that have no link to the business can be disallowed and increase your tax.
Misconception. Filers think all overhead is deductible here; only the portion tied to the unrelated activity qualifies.
Schedule A, Parts III-X: COGS, Rents, Debt-Financed, and More
What it asks in plain English. These parts handle special income types, including cost of goods sold (III), rent (IV), debt-financed income (V), controlled-organization income (VI), social-club investment income (VII), exploited activity (VIII), advertising (IX), and officer compensation (X).
How to answer it. Complete only the parts that match your activity, such as Part V for debt-financed income when you borrow to buy income property, or Part IX for advertising in a member publication.
Example answer. An IRA that holds a leveraged real estate partnership reports its share of debt-financed income in Part V.
Nuance or edge case. Debt-financed income under section 514 taxes the leveraged portion even when the underlying income would otherwise be exempt, like rent or dividends.
Common mistake and consequence. Skipping Part V on a leveraged investment understates UBTI, which is a frequent IRA audit trigger.
Misconception. Filers think passive investment income is always exempt; debt financing can pull dividends, interest, and rent into the tax.
Three Filled-Out Examples Using Real Scenarios
These three named scenarios show how different filers move through the same form. Each table follows one filer through the most important sections.
Scenario 1 — Riverside Community Arts Center (a 501(c)(3) charity with advertising income). Riverside sells ads in its event programs and nets a small profit from that side business.
| Form Section | What Riverside Enters |
|---|---|
| Item B, Exempt under section | 501(c)( 3 ) |
| Item D, EIN | 74-1234567 |
| Item G, Organization type | 501(c) corporation |
| Item J, Number of Schedules A | 1 |
| Part I, Line 1 (total UBTI) | $24,000 |
| Part I, Line 8 (specific deduction) | $1,000 |
| Part I, Line 11 (UBTI) | $23,000 |
| Part II, Line 1 (21% tax) | $4,830 |
| Part III, Line 9 (tax due) | $2,830 |
Scenario 2 — State University (a public college with magazine advertising and parking income). The university runs two unrelated businesses, so it attaches two Schedules A.
| Form Section | What State University Enters |
|---|---|
| Item B, Exempt under section | State college/university |
| Item G, Organization type | State college/university |
| Item J, Number of Schedules A | 2 |
| Schedule A #1, Part IX (advertising income) | $60,000 |
| Schedule A #1, Part II (direct expenses) | $12,000 |
| Schedule A #2, Part I (parking income) | $30,000 |
| Part I, Line 1 (total UBTI) | $70,000 |
| Part I, Line 8 (specific deduction) | $1,000 |
| Part II, Line 1 (21% tax) | $14,490 |
Scenario 3 — Daniel Carter’s Self-Directed IRA (a Roth IRA holding a leveraged real estate partnership). Daniel’s IRA earns debt-financed income from a partnership, so the IRA itself files.
| Form Section | What Daniel’s IRA Enters |
|---|---|
| Item B, Exempt under section | 408A (Roth IRA) |
| Item D, EIN | IRA’s own EIN, 88-7654321 |
| Item G, Organization type | Other trust |
| Item J, Number of Schedules A | 1 |
| Schedule A, Part V (debt-financed income) | $9,000 |
| Part I, Line 1 (total UBTI) | $9,000 |
| Part I, Line 8 (specific deduction) | $1,000 |
| Part II, Line 2 (trust rate tax) | figured on trust schedule |
| Part III, Line 9 (tax due) | amount paid from IRA assets |
How to File the Completed Form
For almost every filer, the answer is e-file. An organization or trust defined in section 511 is required to file Form 990-T electronically through an IRS-authorized e-file provider. You select a vendor, enter your data, attach each Schedule A, and transmit; the IRS returns an electronic acknowledgment that serves as your proof of filing, so save it.
If you e-file, expect acknowledgment within minutes to a couple of days, and there is no IRS filing fee, though your software vendor charges its own fee. You pay any tax due electronically, because the organization must deposit taxes through the Electronic Federal Tax Payment System (EFTPS). To be timely, submit an EFTPS deposit by 8 p.m. Eastern the day before it is due, and keep the EFTPS confirmation number as proof of payment.
Paper filing is allowed only for an applicable entity that is not a section 511 organization and files solely to make an elective payment election. That filer mails the return to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027, and should use certified mail so the postmark proves the filing date. There is no separate filing fee for paper, but you still pay any tax through EFTPS.
The due date depends on who you are. An employees’ trust under section 401(a), an IRA, a Roth IRA, a Coverdell ESA, or an Archer MSA must file by the 15th day of the 4th month after year-end, while all other organizations file by the 15th day of the 5th month. For a calendar-year charity, that means May 15, and an IRA’s deadline is April 15. You can request an automatic extension with Form 8868, but the extension moves the filing date, not the payment date.
What Happens After You File
Once the IRS accepts your return, it processes the figures and matches them against the Schedule K-1s, Forms 2439, and other data it already has. If everything reconciles and you paid in full, you simply keep your acceptance acknowledgment and EFTPS receipt for your records. If you overpaid and asked for a refund, the IRS issues it, and a direct deposit requires the attached Form 8050.
If the numbers do not match, the IRS sends a notice rather than calling. The agency can figure interest and most penalties itself and bill you, so you generally do not compute them on the form. If you get a penalty notice and had a good reason for filing or paying late, reply to the notice with a reasonable-cause explanation, but do not attach that explanation to the original return.
Your return can also be selected for examination, and IRAs with debt-financed or partnership income draw extra attention because UBTI there is easy to misreport. Keep your supporting records, because the IRS can generally adjust a return and you can generally file an amended Form 990-T within 3 years of the due date or the date you filed, whichever is later. For 501(c)(3) filers, remember the return is open to public inspection, so anyone can request a copy.
Mistakes to Avoid When Filling Out the Form
Each line on Form 990-T is its own chance to slip, so review this list before you transmit. Every item below pairs the error with what it costs you.
- Using a “doing business as” name instead of the legal name, which causes e-file rejection.
- Entering a Social Security number where an EIN belongs, which exposes data and stalls processing.
- Checking the wrong organization type in item G, which applies the wrong tax rate.
- Filing one Schedule A for multiple businesses, which violates the separate-business rule and understates tax.
- Forgetting the $1,000 specific deduction on Part I, line 8, which overstates your tax.
- Netting expenses into Schedule A, Part I income, which hides true gross income and the filing trigger.
- Skipping Part V debt-financed income on a leveraged investment, which understates UBTI and invites audit.
- Mixing pre-2018 and post-2017 NOLs on the wrong Part IV lines, which can be disallowed.
- Missing estimated tax payments when tax is $500 or more, which triggers the section 6655 penalty.
- Filing late because you assumed an extension also extends payment, which lets interest pile up.
- Leaving the return unsigned, which the IRS treats as never filed.
- Mailing a paper return when e-file is mandatory, which can be rejected as an improper filing.
Do’s and Don’ts
These quick rules keep your return clean and on time. Each one carries the reason behind it.
Do’s
- Do complete every Schedule A before the main form, because Part I pulls totals from them.
- Do use the IRA’s own EIN, because each account is a separate trust.
- Do take the $1,000 specific deduction, because it lowers taxable income at no cost.
- Do pay through EFTPS, because electronic deposit is required for these taxes.
- Do keep your e-file acknowledgment, because it is your proof of timely filing.
- Do answer the Part IV foreign-account questions honestly, because a “Yes” can require an FBAR.
Don’ts
- Don’t paper-file if you are a section 511 filer, because electronic filing is mandatory.
- Don’t combine separate businesses on one Schedule A, because the silo rule requires separation.
- Don’t assume an extension delays payment, because interest runs from the original due date.
- Don’t put an SSN on the form, because 501(c)(3) returns are public.
- Don’t ignore debt-financed income, because leverage can tax otherwise-exempt income.
- Don’t file without an officer’s signature, because an unsigned return is invalid.
Pros and Cons of Filing on Your Own vs. With Help
Whether you self-file or hire a pro depends on how complex your unrelated income is. Use these points to weigh the trade-off.
Pros of filing on your own
- You save the cost of a paid preparer, which helps small charities on tight budgets.
- You control the timeline and do not wait on a third party near the deadline.
- You learn your own numbers, which makes next year’s filing faster.
- Simple, single-business returns are manageable with guided e-file software.
- You avoid sharing sensitive financial detail beyond your own staff.
Cons of filing on your own
- You may misclassify income, such as debt-financed amounts, and underpay.
- You bear full responsibility for penalties from a mistake.
- Multiple Schedules A and the silo rule get complex fast.
- You may miss deductions, such as NOLs, that a pro would catch.
- IRA and partnership UBTI rules are technical and easy to get wrong.
FAQs
Do I have to file Form 990-T if my unrelated income is under $1,000?
No. You generally file only when gross income from a regularly conducted unrelated trade or business reaches $1,000 or more, measured as gross receipts minus cost of goods sold.
Does my IRA file its own Form 990-T?
Yes. Each IRA is treated as a separate trust, needs its own EIN, and files its own Form 990-T once it has $1,000 or more of unrelated business gross income.
Do I need a separate Schedule A for each business?
Yes. You must complete a separate Schedule A (Form 990-T) for every distinct unrelated trade or business under the section 512(a)(6) silo rule.
Do I enter my SSN anywhere on the form?
No. Never enter an SSN, because 501(c)(3) returns are open to public inspection; use the EIN in item D instead.
Do I check item B for an IRA or a charity?
Yes. A charity enters its 501(c) code in item B, while an IRA checks 408(e), a Roth IRA checks 408A, and a Coverdell ESA checks 530(a).
Does the $1,000 specific deduction on line 8 apply per business?
No. It is a single deduction for the whole organization, not one per Schedule A, and it cannot create a loss.
Do trusts and corporations use the same tax rate?
No. Corporations use a flat 21% on Part II, line 1, while trusts and IRAs use the trust rate schedule on Part II, line 2.
Do I have to file electronically?
Yes. A section 511 organization or trust that must file Form 990-T is required to e-file through an IRS-authorized provider.
Do I report debt-financed income from a leveraged IRA investment?
Yes. You report it on Schedule A, Part V, because leverage under section 514 can tax income that would otherwise be exempt.
Does an extension on Form 8868 also extend my time to pay?
No. Form 8868 extends only the filing date, and interest still runs on unpaid tax from the original due date.
Do I owe an estimated tax penalty if I skip payments?
Yes. If your tax is $500 or more and you did not make required estimated payments, the section 6655 underpayment penalty can apply on Part III, line 8.
Do I need to sign the return if my preparer fills it out?
Yes. An authorized officer of the organization must sign and date the return, and an unsigned return is treated as never filed.
Does a calendar-year charity file by April 15?
No. A calendar-year charity files by May 15, the 15th day of the 5th month, while an IRA files by April 15, the 15th day of the 4th month.
Do I attach Form 8050 for a refund?
Yes. If you want your overpayment on Part III, line 11 sent by direct deposit, you must complete and attach Form 8050.
Related reading
- How to Fill Out IRS Form 990-T (w/Examples) + FAQs
- How to Fill Out IRS Form 990 (w/Examples) + FAQs
- IRS Form 990-PF Instructions: Foundation Return (w/Examples) + FAQs
- How to Fill Out IRS Form 4506-A (w/Examples) + FAQs
- How to Fill Out IRS Form 990-EZ (w/Examples) + FAQs
- How to Fill Out IRS Schedule O (Form 990) (w/Examples) + FAQs