Extension of time for reporting Tax on Form 990-T

Extension of time for reporting Tax on Form 990-T

Corporations may request an automatic 6-month extension of time to file Form 990-T by using Form 8868, Application for Extension of Time To File an Exempt Organization Return.

Trusts may request an automatic 3-month extension of time to file by using Form 8868. Also, if more than the initial automatic 3 months is needed, trusts may file a second Form 8868 to request that an additional, but not automatic, 3-month extension be granted by the IRS.

What id Form 990-T?

Form 990-T is to report Income Tax on a non-profit corporation, trust etc.

Purpose of Form

Use Form 990-T, Exempt Organization Business Income Tax Return, to:

Report unrelated business income;
Figure and report unrelated business income tax liability;
Report proxy tax liability;
Claim a refund of income tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT) on undistributed long-term capital gain; and
Request a credit for certain federal excise taxes paid or for small employer health insurance premiums paid.

Who Must File

Any domestic or foreign organization exempt under section 501(a) or section 529(a) must file Form 990-T if it has gross income from a regularly carried on unrelated trade or business, of $1,000 or more. See Regulations section 1.6012-2(e). Gross income is gross receipts minus the cost of goods sold. (See Regulations section 1.61-3.)

Caution: A disregarded entity, as described in Regulations sections 301.7701-1 through 301.7701-3, is treated as a branch or division of its parent organization for federal tax purposes. Therefore, financial information applicable to a disregarded entity must be reported as the parent organization’s financial information.

Organizations liable for the proxy tax on lobbying and political expenditures must file Form 990-T. See Line 37—Proxy Tax on page 16 for a discussion of the proxy tax. If your organization is only required to file Form 990-T because of the proxy tax, see Proxy Tax Only under Which Parts To Complete, beginning on page 4.

Colleges and universities of states and other governmental units, as well as subsidiary corporations wholly owned by such colleges and universities, are also subject to the Form 990-T filing requirements. However, a section 501(c)(1) corporation that is an instrumentality of the United States and both organized and exempted from tax by an Act of Congress does not have to file.

Applicable reinsurance entities generally exempt from tax under chapter 1 of the Internal Revenue Code by section 1341(c)(1) of the ACA must file Form 990-T to report unrelated business income.

Organizations that are liable for other taxes (such as the section 1291 tax (line 35c or 36 of Form 990-T) or recapture taxes (line 42 of Form 990-T)) must file Form 990-T. See pages 15 and 16 of the instructions for a discussion of these items. If your organization is only required to file Form 990-T because of these taxes, see Other Taxes under Which Parts To Complete, beginning on page 4.

Fiduciaries for the following trusts that have $1,000 or more of unrelated trade or business gross income must file Form 990-T:

1. Individual retirement accounts (IRAs) described under section 408(a),

2. Simplified employee pensions (SEPs) described under section 408(k),

3. Simple incentive match plans (SIMPLEs) described under section 408(p),

4. Roth IRAs described under section 408A(b),

5. Coverdell education savings accounts (ESAs) described under section 530(b),

6. Archer medical savings accounts (Archer MSAs) described under section 220(d), and

7. Qualified tuition programs described under section 529.

Tip: IRAs and other tax-exempt shareholders in a RIC or REIT filing Form 990-T only to obtain a refund of income tax paid on undistributed long-term capital gains should complete Form 990-T as explained in IRAs and other tax-exempt shareholders in a RIC or REIT on page 4.

Definitions:

Section 501(c)(3) organization:

Section 501(c)(3) describes certain organizations which are exempt from taxation under section 501(a).
A 501(c)(3) organization is an organization organized and operated exclusively for charitable purposes. See Regulations section 1.501(c)(3)-1(a).

Annual return:

An annual return is an exact copy of the Form 990-T that was filed with the IRS including all schedules and attachments. It also includes any amendments to the original return (amended return).

By annual return, we mean any annual return (defined above) that is not more than 3 years old from the later of:

The date the return is required to be filed (including extensions), or
The date that the return is actually filed.

When To File

An employees’ trust defined in section 401(a), an IRA (including SEPs and SIMPLEs), a Roth IRA, a Coverdell ESA, or an Archer MSA must file Form 990-T by the 15th day of the 4th month after the end of its tax year. All other organizations must file Form 990-T by the 15th day of the 5th month after the end of their tax year. If the regular due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. If the return is filed late, see Interest and Penalties on this page.

E-file an Extension

Corporations may request an automatic 6-month extension of time to file Form 990-T by using Form 8868, Application for Extension of Time To File an Exempt Organization Return.

Due Date to File Extension

By the 15th day of the fifth month after the end of organizations accounting period or from the date of dissolution or liquidation or termination

At www.ExtensionTax.com it is simple and quick to complete an extension return, instant approval from IRS once it passes all the required validations.

For any Help on Extension Tax forms please reach us at 1-866-245-3918 or simple write to us at support@extensiontax.com