Form 990-T, Exempt Organization Business Income Tax Return
Form 990-T is where a tax-exempt organization reports income from business activities unrelated to its exempt purpose and figures the tax on it. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 990-T?
Form 990-T, Exempt Organization Business Income Tax Return, reports unrelated business taxable income (UBTI) and figures the unrelated business income tax. Even though an organization is exempt, income from a trade or business regularly carried on that is not substantially related to its exempt purpose is generally taxable.
The form is also used to report proxy tax under section 6033(e), claim refunds of certain federal excise taxes and credits, and report tax on undistributed capital gains from regulated investment companies or REITs. Each separate unrelated trade or business is reported on its own Schedule A attached to the 990-T.
Who files 990-T?
- Tax-exempt organizations with gross income from an unrelated trade or business above the filing threshold
- IRAs and other retirement accounts whose investments generate unrelated business taxable income
- Organizations owing proxy tax under section 6033(e) on nondeductible lobbying and political expenditures
- Exempt organizations claiming refundable credits or refunds of certain excise taxes
How to fill out 990-T
- Complete the header with the organization’s name, EIN, exempt status, and the number of unrelated trades or businesses.
- Prepare a Schedule A for each unrelated trade or business, reporting its income and directly connected deductions.
- Carry the totals to the main form, apply the specific deduction and any net operating losses as allowed, and figure unrelated business taxable income.
- Compute the tax, then apply credits and payments to find the balance due or overpayment.
- Download the finished PDF for your records. Form 990-T must generally be e-filed; payments are made electronically as the instructions describe.
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Frequently asked questions
What is unrelated business income?
Income from a trade or business that is regularly carried on and not substantially related to the organization’s exempt purpose. Common examples include advertising revenue and some debt-financed investment income. Exceptions exist for volunteer-run activities, donated goods sales, and certain passive income.
Does filing Form 990-T replace Form 990?
No. Form 990-T is in addition to the organization’s annual information return, such as Form 990 or 990-EZ. One reports overall activities; the other reports and pays tax on unrelated business income.
Why would an IRA file Form 990-T?
If an IRA holds investments that generate unrelated business taxable income, for example certain partnership interests, the custodian may need to file Form 990-T for the account and pay the tax from IRA assets.