اختار اللغة

الاستمارة 4720 التعليمات

Instructions for Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Rev. 2023

النماذج ذات الصلة

  • الاستمارة 4720 - إعادة بعض الضرائب المفروضة بموجب الفصلين 41 و 42 من قانون الإيرادات الداخلية
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تحميل
Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 4720  
Return of Certain Excise Taxes Under Chapters 41 and 42 of the  
Internal Revenue Code  
(Sections 170(f)(10), 664(c)(2), 4911, 4912, 4941, 4942,  
4943, 4944, 4945, 4955, 4958, 4959, 4960, 4965, 4966, 4967, and 4968)  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
donor advisor, or related person who  
owes tax under Chapter 41 or 42,  
(including an entity manager under  
section 4965), may no longer report the  
tax on the Form 4720 filed by the  
organization. Each taxpayer must file a  
separate Form 4720.  
Contents  
Page  
Schedule L—Taxes on Prohibited  
Benefits Distributed From  
Donor Advised Funds  
Contents  
Page  
General Instructions . . . . . . . . . . . . . 2  
Purpose of Form . . . . . . . . . . . . . . . 2  
Who Must File . . . . . . . . . . . . . . . . 2  
Where and How To File . . . . . . . . . . . 3  
When To File . . . . . . . . . . . . . . . . . 4  
Extension . . . . . . . . . . . . . . . . . . . 4  
Name, Address, etc. . . . . . . . . . . . . 4  
Signature and Verification . . . . . . . . . 4  
Attachments . . . . . . . . . . . . . . . . . . 4  
(Section 4967) . . . . . . . . . . . . 18  
Schedule M—Tax on Hospital  
Organization for Failure to  
Meet the Community Health  
Needs Assessment  
Electronic filing for private founda-  
tions. Under Regulations section  
1.6033-2(a)(2)(ii)(J), private foundations  
are required to report such information  
as is required by Form 4720 as part of  
their information reporting requirement  
under section 6033. Therefore, private  
foundations reporting information  
Requirements (Sections 4959  
and 501(r)(3)) . . . . . . . . . . . . . 19  
Schedule N—Tax on Excess  
Executive Compensation  
(Section 4960) . . . . . . . . . . . . 19  
Organizations Organized or  
Schedule O—Excise Tax on Net  
Investment Income of Private  
Colleges and Universities  
Created in a Foreign Country . . . . 4  
Tax Payments . . . . . . . . . . . . . . . . . 5  
Rounding Off to Whole Dollars . . . . . . 5  
Penalties and Interest . . . . . . . . . . . . 5  
Abatement . . . . . . . . . . . . . . . . . . . 5  
Initial Tax Liability and Correction . . . . 5  
Completing the Schedules . . . . . . . . 6  
Amended Return . . . . . . . . . . . . . . . 6  
Specific Instructions for Page 1 . . . . . . 6  
(Section 4968) . . . . . . . . . . . . 20  
required as to liability for tax imposed  
under Chapter 42 on the Form 4720  
(Schedules A-F, J, or N) must file this  
form electronically. Other filers of Form  
4720 may be required to file  
Paid Preparer . . . . . . . . . . . . . . . . 21  
Phone Help . . . . . . . . . . . . . . . . . 21  
Photographs of Missing Children . . . 21  
How To Get Forms and  
Publications . . . . . . . . . . . . . . 21  
electronically as described in Where  
and How To File, later. See Regulations  
section 301.6011-12. Additionally, any  
other filer of Form 4720 who is not  
required to file electronically may also  
voluntarily use the electronic form.  
IRS e-Services Makes Taxes  
Easier . . . . . . . . . . . . . . . . . . 21  
Schedule A—Initial Taxes on  
Index . . . . . . . . . . . . . . . . . . . . . 23  
Self-Dealing (Section 4941) . . . . . 8  
Schedule B—Initial Tax on  
Future Developments  
Undistributed Income (Section  
4942) . . . . . . . . . . . . . . . . . . . 9  
For the latest information about  
developments related to Form 4720 and  
its instructions, such as legislation  
enacted after they were published, go to  
Entity or person subject to tax filing  
Form 4720 with respect to more than  
one organization. Item B in the header  
area of Form 4720 is revised for use by  
any entity (other than the organization)  
or person who is required to file Form  
4720 to report and pay an excise tax  
Schedule C—Initial Tax on Excess  
Business Holdings (Section  
4943) . . . . . . . . . . . . . . . . . . . 9  
Schedule D—Initial Taxes on  
Investments That Jeopardize  
Charitable Purpose (Section  
4944) . . . . . . . . . . . . . . . . . . 12  
What’s New  
Schedule E—Initial Taxes on  
Electronic filing for filers that are not under Chapters 41 or 42 of the Internal  
Taxable Expenditures  
private foundations. Under final  
regulations (T.D. 9972) issued in  
Revenue Code with respect to more  
than one organization. The information  
entered in Item B will allow IRS systems  
to accept and process multiple Form  
4720 filings under the same taxpayer  
number (Employer Identification  
(Section 4945) . . . . . . . . . . . . 13  
Schedule F—Initial Taxes on  
February 2023, filers of Form 4720 that  
are not private foundations are required  
to file Form 4720 electronically if they  
file 10 or more returns in the aggregate  
in a calendar year. The regulations are  
effective for returns required to be filed  
for tax years ending on or after  
Political Expenditures  
(Section 4955) . . . . . . . . . . . . 13  
Schedule G—Tax on Excess  
Lobbying Expenditures  
(Section 4911) . . . . . . . . . . . . 14  
Number or Social Security Number).  
Schedule H—Taxes on  
Explanations of corrective action  
taken. Instead of using Item B to collect  
information about corrections made (or  
not made) on taxable events, Form 4720  
is revised to request information about  
such corrections in each of Schedules  
A, B, C, D, E, F, or I. Now, for each  
Disqualifying Lobbying  
Expenditures (Section 4912) . . . 14  
December 31, 2023. See Where and  
How To File, for more information.  
Schedule I—Initial Taxes on  
Excess Benefit Transactions  
(Section 4958) . . . . . . . . . . . . 15  
Reminders  
Schedule J—Taxes on Being a  
Party to Prohibited Tax Shelter  
Transactions (Section 4965) . . . 16  
Forms 4720 filed by private foundations  
are publicly disclosable. Don’t enter  
Social Security Numbers on these  
publicly disclosable returns.  
transaction to which an initial tax applies  
under sections 4941, 4942, 4943, 4944,  
4945, 4955, or 4958, the organization or  
any other entity or person required to file  
Form 4720 to report one or more such  
Schedule K—Taxes on Taxable  
Distributions of Sponsoring  
Organizations Maintaining  
Donor Advised Funds  
Separate returns. A manager,  
(Section 4966) . . . . . . . . . . . . 17  
self-dealer, disqualified person, donor,  
Oct 3, 2023  
Cat. No. 13023Z  
transactions, must indicate whether a  
correction has been made (or not) on  
the Schedule where each transaction is  
reported.  
that result in prohibited benefits from a  
donor advised fund.  
(Form 990), Part II-A, must file Form  
4720 to report the liability and pay the  
tax (Schedule G). Certain organizations  
whose section 501(c)(3) status is  
The section 4968 taxes on net  
investment income of certain private  
colleges and universities.  
revoked because of excess lobbying  
activities (and possibly their managers)  
are subject to a 5% excise tax on their  
lobbying expenditures (Schedule H).  
The section 170(f)(10) tax on any  
General Instructions  
premiums paid on a personal benefit  
contract in connection with a transfer to  
an organization or charitable remainder  
trust for which a charitable deduction  
isn't allowed to the transferor.  
Purpose of Form  
Charitable organizations that en-  
gage in excess benefit transactions.  
Form 4720 must be filed by any  
organization that answered “Yes” to  
question 25a in Part V of Form 990 or  
that otherwise engaged in an excess  
benefit transaction described in section  
4958. (Schedule I).  
Charitable organizations that make  
certain premium payments on per-  
sonal benefit contracts. Form 4720  
must be filed by any organization  
Use Form 4720 to figure and pay the  
following.  
The initial taxes on private  
The section 664(c)(2) tax on the  
foundations, disqualified persons, or  
foundation managers under sections  
4941 through 4945 for self-dealing,  
failure to distribute income, excess  
business holdings, investments that  
jeopardize charitable purpose, and  
taxable expenditures (see instructions  
for Schedules A through E for  
unrelated business taxable income of a  
charitable remainder trust.  
Who Must File  
Organizations and Any Related  
Organization Subject to Tax  
Under Chapter 41 or 42  
definitions).  
Organizations liable for excise tax under  
Chapter 41 or 42 should complete the  
schedule(s) described below, as  
The initial tax on certain supporting  
described in section 170(c) or section  
664(d) that answered “Yes,to question  
7f in Part V of Form 990, question 6b in  
Part VI-B of Form 990-PF, question 6b in  
Part VIII of Form 5227, or that otherwise  
paid premiums on a personal benefit  
contract in connection with a transfer to  
an organization for which a charitable  
deduction was not allowed to the  
organizations and donor advised funds  
for excess business holdings under  
section 4943.  
applicable. Taxes owed by the  
organization are reported in Part I only.  
The section 4911 tax on excess  
lobbying expenditures by public  
charities that have elected to be subject  
to section 501(h) regarding  
The organization should not  
enter any amount(s) in Part II.  
!
CAUTION  
Part II is used by persons and  
expenditures to influence legislation.  
(Private foundations and section  
4947(a) trusts aren't eligible to make this  
election).  
entities other than the organization to  
report and pay excise tax liability relating  
transactions or activities described in  
the applicable schedule.  
transferor (Part I, line 8).  
Certain tax-exempt entities that are a  
party to a prohibited tax shelter  
transaction (PTST). Certain  
The section 4912 tax on disqualifying  
lobbying expenditures that result in loss  
of section 501(c)(3) tax-exempt status.  
Private foundations and section  
4947(a) trusts. Generally, Form 4720  
must be filed by all organizations,  
tax-exempt entities must file Form 4720  
to report the liability and pay the tax due  
under section 4965(a)(1) (Schedule J).  
This requirement applies to entities  
described in sections 501(c), 501(d), or  
170(c) (other than the United States) or  
an Indian tribal government (within the  
meaning of section 7701(a)(40)).  
The section 4955 tax imposed on any  
amount paid or incurred by a section  
501(c)(3) organization that participates  
or intervenes in any political campaign  
on behalf of, or in opposition to, any  
candidate for public office.  
including foreign organizations, that  
answered “Yes,to question 1b, 1d, 2b,  
3b, 4a, 4b, 5b, 6b, 7b, or 8 in Part VI-B of  
Form 990-PF; or “Yes,to question 1b,  
1c, 3b, 4a, 4b, 5b, 6b, or 7 in Part VIII of  
Form 5227. (Schedules A through E).  
The section 4958 initial taxes on  
disqualified persons and organization  
managers of section 501(c)(3) (except  
private foundations), section 501(c)(4),  
and section 501(c)(29) organizations  
that engage in excess benefit  
Any entity described in section  
Other organizations owing initial tax-  
es on excess business holdings.  
Supporting organizations described in  
section 4943(f)(3) and donor advised  
funds described in section 4966(d)(2)  
that owe the tax reported on Schedule C  
(section 4943(a)). (Schedule C).  
Organizations making political ex-  
penditures. All section 501(c)(3)  
organizations that make a political  
expenditure must file Form 4720 to  
report the liability and pay the tax  
(Schedule F). Organization managers  
may report any first-tier tax they owe on  
Schedule F of Form 4720. (See  
4965(c) that is a party to a PTST  
must file Form 8886-T.  
TIP  
Sponsoring organizations maintain-  
ing donor advised funds. All section  
170(c) organizations (excluding private  
foundations and government  
transactions.  
The section 4959 tax on the failure by  
a hospital organization to meet the  
community health needs assessment  
requirements under section 501(r)(3).  
organizations referred to in sections  
170(c)(1) and 170(c)(2)(A)) that  
The section 4960 taxes on excess  
maintain one or more donor advised  
funds must file Form 4720 to report the  
liability and pay the tax owed on any  
taxable distributions under section 4966  
(Schedule K). In addition, sponsoring  
organizations that have made a  
tax-exempt organization executive  
compensation.  
The section 4965 taxes on prohibited  
tax shelter transactions.  
The section 4966 taxes on taxable  
distributions by sponsoring  
organizations maintaining donor  
advised funds.  
Schedule F instructions, later, for the  
definition of political expenditures.)  
Public charities making excess lob-  
bying expenditures. Public charities  
that made the election under section  
501(h) and owe tax on excess lobbying  
expenditures as figured on Schedule C  
distribution resulting in a prohibited  
benefit to a donor, donor advisor, or  
related person must file Form 4720 to  
report the distribution (Schedule L).  
Charitable remainder trusts. All  
charitable remainder trusts described in  
section 664 that have unrelated  
The section 4967 taxes on a donor,  
donor advisor, or related party, and a  
manager of a sponsor of a donor  
advised fund, relating to distributions  
Instructions for Form 4720 (2023)  
-2-  
       
business taxable income for the tax year educational institution, as defined in  
must file Form 4720 to report the liability section 25A(f)(2);  
Authorized IRS e-File Providers for  
Business Returns.  
Mandatory electronic filing for pri-  
vate foundations. All private  
and pay the tax due (Part I, line 11).  
Unrelated business taxable income is  
figured under section 512 and is  
Had at least 500 students during the  
preceding tax year, with more than 50%  
of those students located in the United  
States; and  
foundations reporting information  
required as to liability for tax imposed  
under Chapter 42 on the Form 4720  
(Schedules A-F, J, or N) must file this  
form electronically, regardless of the  
number of other returns the private  
foundation must file during the calendar  
year. Form 4720 returns filed on paper  
by organizations required to file  
electronically will not be accepted or  
processed.  
determined as if Part III of subchapter F  
applies to such trusts. Use Form 990-T  
to compute unrelated business taxable  
income. The charitable remainder trust  
should not submit Form 990-T for  
Had an aggregate fair market value,  
at the end of the preceding tax year, of  
assets not used directly in the carrying  
out of the organization’s exempt  
processing as a return. Instead, attach a purpose, held by the organization and  
copy of the completed Form 990-T and  
file it with Form 4720.  
related organizations, of at least  
$500,000 per student.  
Hospital organizations failing to  
meet the community health needs  
assessment requirements (Sections  
501(r)(3), 4959). An excise tax is  
imposed on the failure by a hospital  
organization to meet the community  
health needs assessment (“CHNA”)  
requirements of section 501(r)(3)  
(Schedule M).  
Other Filers  
Managers, self-dealers, disqualified  
persons, donors, donor advisors,  
and related persons. A manager,  
self-dealer, disqualified person, donor,  
donor advisor, or related person who  
owes tax under Chapter 41 or 42,  
including an entity manager under  
section 4965, must file a separate Form  
4720 showing the tax owed. The Form  
4720 filed by a manager, self-dealer,  
disqualified person, donor, donor  
advisor, or related person should  
include the name of the organization in  
Part II. If applicable, a separate Form  
4720 should be filed for each  
Mandatory electronic filing for other  
than private foundations. Filers that  
are not private foundations required to  
file at least 10 returns of any type during  
the calendar year ending with or within  
the tax year must file their returns  
electronically. Returns” for purposes of  
these instructions include information  
returns (for example, Forms W-2 and  
Forms 1099), income tax returns,  
employment tax returns (including  
quarterly Forms 941, Employer’s  
Certain taxpayers that pay excess  
executive compensation. An  
applicable tax-exempt organization  
(ATEO) that pays to any covered  
employee more than $1 million in  
remuneration or pays an excess  
parachute payment during the year must  
file Form 4720 to report the liability and  
pay the excise tax imposed by section  
4960. (Schedule N). An ATEO includes  
section 501(a) exempt organizations,  
section 527 political organizations,  
section 521 farmers’ cooperatives, and  
government entities that have income  
excluded under section 115(1). If  
remuneration from a related  
Quarterly Federal Tax Return), and  
excise returns. The failure to file a return  
electronically when required is deemed  
a failure to file the return even if the filer  
submits a paper return.  
organization for which the manager,  
self-dealer, disqualified person, donor,  
donor advisor, or related person owes  
tax. A person filing Form 4720 should  
enter their tax year at the top of Form  
4720. Enter the name, address, and  
taxpayer identification number of the  
manager, self-dealer, disqualified  
person, donor, donor advisor, or related  
person in the address area at the top of  
Form 4720. Enter the name of the  
organization in the name and address  
area in Part II. Each manager,  
On a year-by-year and form-by-form  
basis, the IRS may waive, in cases of  
undue hardship, the requirement that  
filers other than private foundations that  
file 10 or more returns file electronically.  
In certain circumstances, a filer may be  
administratively exempt from the  
organization is included to determine  
the tax imposed by section 4960, the  
related organization must file a separate  
Form 4720 to report its share of liability  
for the tax on Schedule N. See the  
instructions for Schedule N, later, for the  
definition of related organization for  
purposes of the excise tax under section  
4960.  
requirement to file electronically. The  
filer should keep documentation  
supporting their undue hardship or other  
applicable reason for not filing  
self-dealer, disqualified person, donor,  
donor advisor, or related person should  
complete all the information the form  
requires, including the schedule(s)  
applicable to each tax shown on Part II,  
to the extent possible, and as  
electronically in the filer’s records. For  
more information about mandatory  
electronic filing based on the 10–return  
threshold, waivers, and exemptions, see  
Regulations section 301.6011–12.  
A governmental entity that is not  
applicable.  
exempt from tax under section  
501(a) and does not exclude  
TIP  
Paper filing. For filers submitting paper  
Managers of tax favored  
returns:  
income under section 115(1) is not an  
ATEO for purposes of section 4960.  
retirement plans, individual  
TIP  
retirement arrangements, and  
savings arrangements described in  
sections 401(a), 403(a), 403(b), 529,  
457(b), 408(a), 220(d), 408(b), 530, or  
223(d) must report and pay tax due  
under section 4965(a)(2) on Form 5330.  
Certain private colleges and univer-  
sities subject to the excise tax on  
net investment income (section  
4968). An applicable educational  
institution must file Form 4720 to report  
the liability and pay the excise tax  
imposed by section 4968. (Schedule O)  
An applicable educational institution is a  
private college or university that:  
Where and How To File  
Electronic filing. All persons required  
to file can file Form 4720 electronically.  
For general information about electronic  
filing, visit IRS.gov/Efile, and see Pub.  
4163, Modernized e-file Information for  
Answered “Yes” to line 16 in Part V of  
Form 990 or that otherwise is a private  
college or university that is an eligible  
Instructions for Form 4720 (2023)  
-3-  
   
treasurer, assistant treasurer, chief  
accounting officer, or other corporate  
officer (such as tax officer).  
Part II taxes on managers, self-deal-  
ers, disqualified persons, donors,  
donor advisors, or related persons.  
Each manager, self-dealer, disqualified  
person, donor, donor advisor, or related  
person, must file Form 4720 by the 15th  
day of the 5th month after the end of  
their tax year.  
IF you are  
THEN use the  
following  
located in ...  
address ...  
For a partnership, the form may be  
signed by a partner or partners  
authorized to sign the partnership  
return.  
the United States Department of the  
Treasury  
Internal Revenue  
Service Center  
For a trust, the form must be signed  
by the trustee(s).  
Ogden, UT  
If the regular due date falls on a  
Saturday, Sunday, or legal holiday, file  
by the next business day.  
84201-0027  
A receiver, trustee, or assignee  
required to file any return on behalf of an  
individual, a trust, estate, partnership,  
association, company, or corporation  
must sign the Form 4720 filed for these  
taxpayers.  
a foreign country or Internal Revenue  
a U.S. territory  
Service Center  
P.O. Box 409101  
Ogden, UT 84409  
Extension  
Use Form 8868, Application for  
Automatic Extension of Time To File an  
Exempt Organization Return or Excise  
Taxes Related to Employee Benefit  
Plans, to request an automatic  
Also, a person with a valid power of  
attorney may sign for the organization,  
foundation, manager, self-dealer, donor,  
donor advisor, or related person.  
Include a copy of the power of attorney  
with the return.  
Private delivery services. You can  
use certain private delivery services  
(PDS) designated by the IRS to meet  
the “timely mailing as timely filing/  
paying” rule for tax returns and  
extension of time to file. The automatic  
extension will be granted if Form 8868 is  
properly completed, filed, and any  
balance due shown on Form 4720 is  
paid by the due date for Form 4720.  
payments. Go to IRS.gov/PDS for the  
current list of designated services.  
Attachments  
The private delivery service can tell  
you how to get written proof of the  
mailing date.  
Private delivery services can't deliver  
items to P.O. boxes. You must use the  
U.S. Postal Service to mail any item to  
an IRS P.O. box address. Private  
delivery services deliver to:  
If you need more space, and are  
permitted to file a paper form, attach  
separate sheets showing the same  
information in the same order as on the  
printed form. Show the totals on the  
printed form.  
Name, Address, etc.  
For an organization filing its own Form  
4720, the name, address, and employer  
identification number of the organization  
should be the same as shown on Form  
990-PF, Form 5227, Form 990, or Form  
990-EZ, and entered in the address field  
at the top of the form. A self-dealer,  
donor, donor advisor, related person,  
disqualified person, or manager filing a  
separate Form 4720 enters their name,  
address, and taxpayer identification  
number in the address field at the top of  
the form. The name and address of the  
organization to which taxes reported in  
Part II relate is entered in the address  
field at the top of Part II.  
Enter the organization's name and  
EIN on each sheet. Use sheets that are  
the same size as the form and indicate  
clearly the line of the paper form to  
which the information relates.  
Internal Revenue Service  
1973 Rulon White Blvd.  
Ogden, UT 84201  
When To File  
Part I taxes on the organization. File  
Form 4720 by the due date (not  
Organizations Organized  
or Created in a Foreign  
Country  
including extensions) for filing the  
organization's Form 990-PF, Form 990,  
Form 990-EZ, or Form 5227. If you  
aren't required to file any of these forms,  
file Form 4720 by the 15th day of the 5th  
month after the organization's  
Report all amounts in U.S. currency  
(state conversion rate used) and give  
information in English. Report items in  
total, including amounts and  
Include the suite, room, or other unit  
number after the street address.  
If the Post Office doesn't deliver mail  
to the street address, show the P.O. box  
number instead of the street address.  
transactions from both inside and  
outside the United States.  
accounting period ends.  
Chapter 42 taxes (including sections  
4941 through 4945, 4955, 4958 through  
4960, and 4965 through 4968) don't  
apply to foreign organizations that  
receive substantially all of their support  
(other than gross investment income)  
from sources outside the United States.  
See section 4948(b). These  
If the regular due date falls on a  
Saturday, Sunday, or legal holiday, file  
by the next business day.  
If you want a third party (such as an  
accountant or an attorney) to receive  
mail for the foundation or charity, enter  
on the street address line “C/O” followed  
by the third party's name and street  
address or P.O. box.  
Affiliated group member. See  
section 4911(f) and the instructions for  
Schedule G, later, for definition of  
“affiliated group.” For the members of an  
affiliated group of organizations that  
have different tax years, and who are  
filing Form 4720 to report tax under  
section 4911, the tax year of the  
affiliated group is the calendar year,  
unless all members of the group elect  
under Regulations section 56.4911-7(e)  
(5) to make a member's year the group's  
tax year.  
Signature and Verification  
organizations must complete this form  
and file it in the same manner as  
Each taxpayer required to file Form  
4720 (see Who Must File, earlier) must  
file their own return. Each return must  
be signed by a person authorized to  
sign the return as of the date the return  
is filed.  
domestic organizations. However, these  
organizations, as well as their  
foundation managers and self-dealers,  
don't have to pay any tax that would  
otherwise be due on this return.  
For a corporation (or an association),  
the form may be signed by one of the  
following: president, vice president,  
For these purposes, a foreign  
organization is an organization not  
created or organized in or under the law  
Instructions for Form 4720 (2023)  
-4-  
             
of the United States, a U.S. state or  
territory, or the District of Columbia.  
Gifts, grants, contributions, or  
disqualified person or manager liable for  
the excise tax under section 4958(a)(1)  
or (2). Disqualified persons and entity  
managers should each file their own  
return and should pay taxes on excess  
Rounding Off to Whole  
Dollars  
You may round off cents to whole dollars  
on your return and schedules. If you do  
round to whole dollars, you must round  
all amounts. To round, drop amounts  
under 50 cents and increase amounts  
from 50 to 99 cents to the next dollar.  
For example, $1.39 becomes $1 and  
$2.50 becomes $3.  
membership fees directly or indirectly  
from a United States person (as defined  
in section 7701(a)(30)) are from sources benefit transactions that are imposed on  
within the U.S. See Regulations section  
53.4948-1.  
them under section 4958 from their own  
funds. Any reimbursement of a  
disqualified person's tax liability from  
excess benefit transactions by the  
organization will be treated as an excess  
benefit transaction subject to the tax  
unless the organization included the  
reimbursement in the disqualified  
person's compensation and the  
Although a foreign organization  
described in section 4948(b) isn't  
subject to Chapter 42 taxes, it shall not  
be exempt from tax under section  
501(a) if it engages in a prohibited  
transaction. See section 4948(c). A  
prohibited transaction is a transaction  
that would subject the organization or its  
disqualified person to a penalty under  
section 6684 if the foreign organization  
were a domestic organization. Unless  
the transaction constitutes a willful and  
flagrant violation of a Chapter 42  
provision, a transaction violating a  
Chapter 42 provision won't constitute a  
prohibited transaction except under the  
following circumstances:  
1. There was a prior Chapter 42  
violation that resulted in a warning from  
the IRS that a second violation would  
result in a prohibited transaction.  
2. The IRS provides notice that the  
second transaction will constitute a  
prohibited transaction unless it is  
corrected within 90 days of the notice.  
If you have to add two or more  
amounts to figure the amount to enter  
on a line, include cents when adding the  
amounts and round off only the total.  
disqualified person's total compensation  
was reasonable. See the instructions for  
Schedule I, later, for information on  
excess benefit transactions.  
Penalties and Interest  
There are penalties for failure to file or to  
pay tax. There are also penalties for  
willful failure to file, supply information or  
pay tax, and for filing fraudulent returns  
and statements, that apply to public  
charities, private foundations,  
Similarly, an organization that pays a  
prohibited benefit from a donor advised  
fund must report the transaction(s) on  
Schedule L but must not pay the tax  
liability of any donor advisor or manager managers, donors, donor advisors,  
liable for the excise taxes under section  
4967. Such persons should each file  
their own return and pay the applicable  
excise tax under section 4967 from their  
own funds. Any reimbursement of a  
donor advisor's tax liability under  
related persons, and self-dealers who  
are required to file this return. See  
sections 6651, 7203, 7206, and 7207.  
Also, see section 6684 for penalties that  
relate to tax liability under Chapter 42.  
Interest on any unpaid tax is charged  
at the underpayment rate established  
under section 6621. The interest on  
underpayments is in addition to any  
penalties.  
section 4967 by the organization will be  
treated an additional prohibited benefit.  
Tax Payments  
3. The second transaction isn't  
The organization or a related  
timely corrected.  
organization liable for the section 4960  
excise tax on excess executive  
compensation, reports and computes  
the taxes owed on Part I. The  
organization or related organization  
pays the applicable taxes on Part III of  
the organization’s Form 4720. Each  
must file their own return and cannot file  
jointly.  
Abatement  
Reporting Self-Dealing,  
Excess Benefit  
Use Form 843, Claim for Refund and  
Request for Abatement, to request  
abatement, refund, or relief under  
section 4962. See section 4962 for rules  
on abatement, refund, or relief from  
payment of first tier taxes under sections  
4942 through 4945, 4955, 4958, 4966,  
and 4967.  
Transactions, and  
Prohibited Benefits  
A private foundation that engages in a  
self-dealing transaction must report the  
transaction on Schedule A but must not  
pay the tax liability of any disqualified  
person or manager liable for the excise  
tax under section 4941(a)(1) or (2).  
Managers, self-dealers, disqualified  
persons, donors, donor advisors, and  
related persons, report and compute the  
applicable taxes on Part II. Such  
Note. If you file Form 4720 on paper,  
you can submit the Form 843 with your  
Form 4720 or mail it separately, as  
described in the instructions for that  
form. If you file Form 4720 electronically,  
mail Form 843, as described in the  
instructions for that form, after receiving  
confirmation your electronically filed  
Form 4720 has been accepted.  
Payment by a private foundation of any  
taxes owed by the foundation managers  
or self-dealers will result in additional  
taxes under the self-dealing and taxable  
expenditure provisions (sections 4941  
and 4945, respectively). In addition,  
these payments could impact the  
persons pay the applicable tax on Part  
III, each filing a separate Form 4720.  
Tax payments can be made by check  
or through the Electronic Federal Tax  
Payment System (EFTPS). For more  
information about EFTPS or to enroll in  
EFTPS, visit the EFTPS website at  
EFTPS.gov, or call 800-555-4477. You  
can also get Pub. 966, Electronic  
Federal Tax Payment System: A Guide  
to Getting Started. See below for an  
exception to this rule for small  
foundation's calculation of undistributed  
income on Form 990-PF which could  
subject the foundation to additional  
taxes under section 4942. Managers  
and self-dealers should pay taxes  
Initial Tax Liability and  
Correction  
If you pay an initial tax under sections  
4941 through 4945, 4955, and 4958, for  
tax year 2023, the payment may not  
satisfy the entire tax liability for a taxable  
event. The taxable event is the act,  
failure to act, or transaction that resulted  
in the liability for initial taxes under these  
provisions.  
imposed on them from their own funds.  
foundations.  
An organization that engages in an  
excess benefit transaction must report  
the transaction on Schedule I but must  
not pay the tax liability of any  
Instructions for Form 4720 (2023)  
-5-  
         
Paying the tax and filing a Form 4720  
are required for each year or part of a  
year in the taxable period that applies to  
the taxable event. Generally, the taxable  
period begins with the date of the act or  
investment and ends with the date  
corrective action is completed, a notice  
of deficiency is mailed, or the tax is  
assessed, whichever comes first. Thus,  
the initial tax liability for those taxes  
continues to accrue until the date a  
notice of deficiency is mailed, the  
you are a manager, self-dealer,  
disqualified person, donor, donor  
advisor, or related person.  
year form as the form you are correcting.  
Check the “Amended Return” box in the  
heading area.  
The organization will complete all  
parts of each applicable schedule,  
including computation of the initial tax  
on other persons (for example,  
Complete the entire return (not just  
the part that changed) following the form  
and instructions for the amended year.  
Include a statement that identifies the  
lines and amounts being changed and  
the reason for each change.  
self-dealers and managers), even  
though the organization is not liable for  
those tax amounts. Entities other than  
the organization and individuals filing  
Form 4720 should complete the parts of  
a schedule that apply to the  
If the amended return shows tax due  
and you wish to request abatement of  
the tax reported on Form 4720, see  
Abatement, earlier. If the amended  
return results in an overpayment of tax  
previously paid, show the amount of the  
overpayment in Part III, line 4. Do not file  
Form 843, Claim for Refund and  
Request for Abatement, to request a  
refund of an overpayment computed on  
Part III, line 4.  
violation is corrected, or the tax is  
assessed, whichever comes first.  
transaction(s) that give rise to their  
liability. Where liability is being allocated  
among more than one person (for  
example, two or more managers  
allocating the initial tax on managers),  
the person filing the return should show  
the full amount of tax and show how the  
liability allocated.  
To avoid additional taxes and  
penalties, and in some cases, further  
initial taxes, a foundation, organization,  
disqualified person, or manager must  
correct the taxable event within the  
correction period.  
Generally, the correction period  
begins on the date the event occurs and  
ends 90 days after the mailing date of a  
notice of deficiency, under section 6212,  
in connection with the second-tier tax  
imposed on that taxable event. That  
time is extended by:  
Note. See Liability for Tax (later in Part  
II) regarding allocation of liability among  
twoor more persons liable for an excise  
tax under Chapter 42.  
Specific Instructions for  
Page 1  
An organization filing Form 4720 should  
check the appropriate box for the type of  
annual return it files. If filing as an  
individual or taxable entity and the  
annual return you file isn't shown,  
subject to a Chapter 42 tax, check  
“Other.”  
The instructions for Schedules A  
through O describe acts or transactions  
subject to tax under Chapter 42. Don't  
complete Schedules A and E if  
Any period in which a deficiency can't  
be assessed under section 6213(a)  
because a petition to the Tax Court for  
redetermination of the deficiency is  
pending, not extended by any  
exceptions apply to all the acts or  
transactions. In general, question A on  
page 1 and Schedules A, B, C, D, and E  
don't apply to public charities. However,  
Schedule C does apply to some public  
charities including certain sponsoring  
organizations of donor advised funds  
and certain supporting organizations  
that are treated as private foundations  
for purposes of section 4943. See the  
instructions for Schedule C for a  
supplemental proceeding by the Tax  
Court under section 4961(b), regarding  
whether any correction was made, and  
Question A. If filing as a person  
subject to a Chapter 42 tax, answer with  
respect to the related organization.  
Any other period the IRS determines  
is reasonable and necessary to correct  
the taxable event.  
Question B. Answer “Yes” to question  
B if you are a self-dealer, donor, donor  
advisor, related person, disqualified  
person, or manager and you will be filing  
Form 4720 to report and pay excise  
taxes with respect to more than one  
organization. For example, if you are a  
manager of two private foundations,  
both of which made taxable  
The taxable event will be treated as  
occurring:  
For the tax on failure to distribute  
description of the public charities to  
which section 4943 applies.  
income (section 4942), on the first day  
of the tax year for which there was a  
failure to distribute income,  
Before completing Schedule C,  
determine whether the organization or  
donor advised fund has excess holdings  
in any business enterprise. If the  
For the tax on excess business  
expenditures for which the initial tax on  
managers is imposed under section  
4945(a)(2), answer “Yes” to question B.  
Attach a list showing the name and EIN  
of each organization.  
holdings (section 4943), on the first day  
on which there were excess business  
holdings, or  
organization or donor advised fund has  
holdings subject to the tax on excess  
business holdings, complete a separate  
Schedule C for each enterprise.  
In any other case (sections 4941,  
4945, 4955, and 4958), on the date the  
event occurred.  
You should also answer "Yes" to  
question B if you are a related  
Refer to the instructions for the  
applicable schedule for information  
relating to corrections made (or not  
made) for the applicable excise tax.  
Before completing Schedule D,  
determine whether the investment was  
program related. If not, complete  
Schedule D for each investment for  
which you answered “Yes,to Form  
990-PF, Part VI-B, question 4a or b, or  
Form 5227, Part VIII, question 4a or b.  
organization that is reporting your  
ratable share of the section 4960 excise  
tax on excess executive compensation  
(reported on Part I) in the same year that  
you are a disqualified person or  
Completing the Schedules  
organization manager who must report  
and pay an excise tax on Part II with  
respect to the same organization. You  
cannot combine amounts from Part I  
and Part II in Part III. Therefore, you will  
need to file separate returns - one to  
report your ratable share of excess  
executive compensation on Part I, and a  
Before completing any of the schedules  
in this return, read the applicable  
Amended Return  
instructions. If any completed schedule  
shows taxes you owe, enter them on  
Part I if you are the organization (or  
To correct a previously filed Form 4720  
(including the reporting of additional  
related organization subject to tax under excise taxes discovered after the  
section 4960) or Part II of this return if  
original Form 4720 filing), use the same  
Instructions for Form 4720 (2023)  
-6-  
     
second return to report any excise taxes  
reported on Part II.  
2. Tax for acts of self-dealing in  
which you participated as a manager,  
from Schedule A, Part III, column (d).  
Line 11  
Section 664(c)(2) imposes an excise tax  
on the unrelated business taxable  
income of a charitable remainder trust.  
The excise tax is equal to the trust's  
unrelated business taxable income.  
Enter the charitable remainder trust's  
unrelated business taxable income on  
line 11.  
Computation of unrelated business  
taxable income. Charitable remainder  
trusts should use Form 990-T to  
compute their unrelated business  
taxable income. Complete Form 990-T  
as follows.  
Note. A complete list of organizations  
with respect to which you will file Form  
4720 is necessary to ensure that all  
Form 4720 returns you must file can be  
accepted for processing.  
Line 2. Enter the tax on investments  
that jeopardize charitable purpose from  
Schedule D, Part II, column (d), that you  
took part in as a foundation manager.  
Line 3. Enter the tax on taxable  
expenditures from Schedule E, Part II,  
column (d), that you took part in as a  
foundation manager.  
Part I  
Part I is completed by the organization  
or a related organization liable for tax  
under section 4960.  
Line 4. Enter the tax on political  
An organization filing Form 4720  
solely to report activity or transactions  
on Schedule A, Schedule I, or  
Schedule L, should leave lines 1  
through 14 of Part I blank and enter a  
zero on line 15.  
expenditures from Schedule F, Part II,  
column (d), that you took part in as an  
organization or foundation manager.  
1. Enter the trust's name under  
“Name of organization” and complete  
item D (EIN) at the top of page 1.  
Line 5. Enter the tax on disqualifying  
lobbying expenditures from Schedule H,  
Part II, column (d), that you took part in  
as an organization manager.  
2. Complete as many Schedules A  
(Form 990-T) as needed to calculate the  
trust’s unrelated business taxable  
income. Leave any line that does not  
apply blank. Complete the applicable  
parts of each Schedule A, including the  
business activity code for each  
An organization filing form 4720 to  
report activity or transactions on  
Schedule A, Schedule I, or Schedule L  
and that also owes excise tax for any  
transactions reported on other  
schedules should complete all  
applicable schedules, but report in Part I  
only the tax imposed on the  
Line 6. Enter the sum of:  
1. Taxes you owe as a disqualified  
person, from Schedule I, Part II, column  
(d), and  
2. Tax on excess benefit  
Schedule A. Attach forms or other  
attachments required for a complete  
Schedule A. However, if Schedule D  
(Form 1041) is required, don't complete  
Part V of Schedule D (Form 1041).  
transactions in which you as  
organization manager participated  
knowing that the transaction was an  
excess benefit transaction, from  
Schedule I, Part III, column (d).  
organization.  
Note. The organization should not  
make any entries in Part II.  
3. After all Schedules A have been  
prepared, complete Form 990-T, Part I  
only. Don't complete Parts II through V  
or the signature area of Form 990-T.  
4. Enter the amount from Part I,  
line 11 of Form 990-T on Part I, line 11  
of Form 4720.  
Line 7. Enter the tax on you as the  
entity manager who approved or  
otherwise caused the entity to be a  
party to a prohibited tax shelter  
transaction from Schedule J, Part II,  
column (d).  
Line 8  
If the organization has an entry  
on this line, it must also file  
Form 8870.  
TIP  
Enter the total of all premiums paid  
by the organization on any personal  
benefit contract if the payment of  
premiums is in connection with a  
transfer for which a deduction isn't  
allowed under section 170(f)(10)(A).  
Also, if there is an understanding or  
expectation that any person will directly  
or indirectly pay any premium on a  
personal benefit contract for the  
transferor, include those premium  
payments in the amount entered on this  
line.  
Line 8. Enter the tax on taxable  
distributions from sponsoring  
organizations maintaining donor  
advised funds from Schedule K, Part II,  
column (d), that you took part in as a  
manager.  
Part II  
Part II is completed by a manager, self-  
dealer, disqualified person, donor, donor  
advisor, or related person subject to tax  
under sections 4912(b), 4941(a),  
4944(a)(2), 4945(a)(2), 4955(a)(2),  
4958(a), 4965(a)(2), 4966(a)(2), and  
4967(a). Enter the name, address, and  
employer identification number of the  
foundation or organization with respect  
to which tax is owed as a manager,  
self-dealer, disqualified person, donor,  
donor advisor, or related person, as  
computed in Schedules A, D, E, F, H, I,  
J, K, and L.  
Line 9. Enter the sum of:  
1. Tax imposed on you as a donor,  
donor advisor, or related person, from  
Schedule L, Part II, column (d), and  
2. Tax imposed on you as a fund  
manager who agreed to making of a  
prohibited benefit distribution from  
Schedule L, Part III, column (d).  
A personal benefit contract is (to the  
transferor) any life insurance, annuity, or  
endowment contract that benefits  
directly or indirectly the transferor, a  
member of the transferor's family, or any  
other person designated by the  
Liability for tax. A person's liability  
for tax as a manager, self-dealer,  
disqualified person, donor, donor  
advisor, or related person, under  
sections 4912, 4941, 4944, 4945, 4955,  
4958, 4966, and 4967 is joint and  
several. Therefore, if more than one  
person owes tax on an act as a  
Note. A related organization that owes  
section 4960 excise tax on excess  
executive compensation should report  
the tax in Part I and should not make  
entries in Part II.  
transferor (other than an organization  
described in section 170(c)).  
Line 1. Enter the sum of:  
For more information, see Notice  
2000-24, 2000-17 I.R.B. 952, at  
manager, self-dealer, disqualified  
person, donor, donor advisor, or related  
person, they may apportion the tax  
1. Taxes you owe as a self-dealer,  
from Schedule A, Part II, column (d),  
and  
Instructions for Form 4720 (2023)  
-7-  
 
among themselves. However, when all  
managers, self-dealers, donors, donor  
advisors, related persons, or  
connection with the initial tax imposed  
on the self-dealer;  
participation was not willful and was due  
to reasonable cause.  
The date the initial tax on the  
Specific Instructions  
disqualified persons who are liable for  
tax on a particular transaction under  
sections 4912, 4941, 4944, 4945, 4955,  
4958, 4966, or 4967 pay less than the  
total tax due on that transaction, then  
the IRS may charge the amount owed to  
one or more of them regardless of the  
tax apportionment shown on this return.  
self-dealer is assessed; or  
The date any correction of the act of  
Part I. List each act of self-dealing in  
Part I. In column (c), for each act of  
self-dealing in Part I, indicate whether  
the act has been corrected. For the  
purposes of a self-dealing transaction  
described in section 4941, the term  
“correction” generally means undoing  
the transaction to the extent possible,  
but in any case, placing the private  
foundation in a financial position not  
worse than that in which it would be if  
the disqualified person were dealing  
under the highest fiduciary standards.  
self-dealing is completed.  
Self-dealing. Self-dealing includes any  
direct or indirect:  
Sale, exchange, or leasing of property  
between a private foundation and a  
disqualified person (see definitions in  
the Form 990-PF instructions),  
Part III  
Lending of money or other extension  
Line 1. Organizations and related  
organizations owing tax under section  
4960 enter the total tax amount from  
Part I, line 15. Managers, self-dealers,  
disqualified persons, donors, donor  
advisors, or related persons enter the  
total tax amount from Part II, line 10.  
Line 2. List total payments here,  
including amounts paid on extension  
with Form 8868. See the discussion on  
Extensions, earlier, for details on  
amounts paid with extensions.  
Line 3. Enter the tax due on this line.  
Make check(s) or money order(s)  
payable to the United States Treasury.  
Line 4. This is your refund. Only  
persons with a legal right to a refund  
should file a refund request here.  
of credit between a private foundation  
and a disqualified person,  
Furnishing of goods, services, or  
facilities between a private foundation  
and a disqualified person,  
Answer “Yes,in column (c) if  
correction has been made in whole or in  
part. Answer “No,only if the transaction  
has not been corrected in any way.  
Payment of compensation (or  
payment or reimbursement of  
expenses) by a private foundation to a  
disqualified person,  
If correction has been made, provide  
a detailed description of any correction  
made, and the date of each correction. If  
correction is partial, explain why  
complete correction has not been made.  
If correction is made in more than one  
transaction, describe each transaction  
separately.  
Transfer to, or use by or for the benefit  
of, a disqualified person of the income  
or assets of a private foundation, and  
Agreement by a private foundation to  
make any payment of money or other  
property to a government official other  
than an agreement to employ or make a  
grant to that individual for any period  
after the end of government service if  
that individual will be ending  
If correction has not been made,  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
government service within a 90-day  
period.  
Amounts from Parts I and Part II  
cannot be combined in Part III.  
!
Enter in column (e) the number  
designation from Form 990-PF, Part  
VI-B, question 1a, or Form 5227, Part  
VIII, question 1a that applies to the act.  
For example, “1a(1)” or “1a(4).”  
Part II. Enter in column (a) the names  
of all disqualified persons who took part  
in the acts of self-dealing listed in Part I.  
If more than one disqualified person  
took part in an act of self-dealing, each  
is individually liable for the entire tax in  
connection with the act. But the  
CAUTION  
Exceptions to self-dealing. Go to  
for a description of acts that aren't  
considered self-dealing.  
Initial taxes on self-dealer. An initial  
tax of 10% of the amount involved is  
charged for each act of self-dealing  
between a disqualified person and a  
private foundation for each year or part  
of a year in the taxable period. Any  
disqualified person (other than a  
foundation manager acting only as  
such) who takes part in the act of  
self-dealing must pay the tax.  
Schedule A—Initial Taxes  
on Self-Dealing (Section  
4941)  
General Instructions  
Requirement. All organizations that  
answered “Yes,to question 1b or 1d in  
Part VI-B of Form 990-PF, or “Yes,to  
question 1b or 1c in Part VIII of Form  
5227, must complete Schedule A. In  
addition, a self-dealer or a manager that  
participated in an act of self-dealing  
knowing that it was such an act must  
also complete Schedule A. Complete  
Parts I, II, and III of Schedule A only in  
connection with acts that are subject to  
the tax on self-dealing.  
disqualified persons who are liable for  
the tax may prorate the payment among  
themselves. Enter in column (c) the tax  
to be paid by each disqualified person.  
A self-dealer filing Form 4720 should  
carry the appropriate amount in column  
(d) to Part II, line 1.  
Initial taxes on foundation manag-  
ers. When a tax is imposed on a  
foundation manager for an act of  
self-dealing, the tax will be 5% of the  
amount involved in the act of  
The organization should not  
Paying the tax and filing a Form 4720  
is required for each year or part of a year  
in the taxable period that applies to the  
act of self-dealing. Generally, the  
taxable period begins with the date on  
which the self-dealing occurs and ends  
on the earliest of:  
carry any amount from column  
self-dealing for each year or part of a  
year in the taxable period. However, the  
total tax imposed for all years in the  
taxable period is limited to $20,000 for  
each act of self-dealing. The tax is  
imposed on any foundation manager  
who took part in the act knowing that it  
was self-dealing except those  
!
CAUTION  
(d) to Part II, line 1.  
Part III. Enter in column (a) the names  
of all foundation managers who took  
part in the acts of self-dealing listed in  
Part I, and who knew that the acts were  
self-dealing (except for foundation  
managers whose participation was not  
willful and was due to reasonable  
cause).  
The date a notice of deficiency is  
mailed under section 6212, in  
foundation managers whose  
Instructions for Form 4720 (2023)  
-8-  
     
If more than one foundation manager  
took part in the act of self-dealing,  
knowing that it was such an act, and  
participation was willful and not due to  
reasonable cause, each is individually  
liable for the entire tax in connection  
with the act. But the foundation  
applicable, indicate whether the election conducted to produce income from  
under 4942(h) has been made. See the  
Instructions for Form 990-PF, Part XII,  
lines 4b and 4c.  
selling goods or performing services,  
that is an unrelated trade or business  
described in section 513.  
The term “business enterprise”  
doesn't include a functionally related  
business, as defined in section 4942(j)  
(4). In addition, business holdings don't  
include program-related investments  
(such as investments in small  
Schedule C—Initial Tax on  
Excess Business Holdings  
(Section 4943)  
managers liable for the tax may prorate  
the payment among themselves. Enter  
in column (c) the tax to be paid by each  
foundation manager.  
General Instructions  
businesses in economically depressed  
areas or in corporations to assist in  
neighborhood renovations) as defined in  
section 4944(c) and related regulations.  
Also, business enterprise doesn't  
include a trade or business at least 95%  
of the gross income of which comes  
from passive sources. For more  
Carry the total amount in column (d)  
for each foundation manager to Part II,  
line 1.  
Private foundations may be subject to  
an excise tax on the amount of any  
excess holdings, as described later. For  
purposes of section 4943, donor  
advised funds and certain supporting  
organizations are considered private  
foundations. For more information on  
the applicability of Schedule C to such  
organizations, see General rules on the  
permitted holdings of donor advised  
funds and certain supporting  
The organization should not  
carry any amount from column  
!
CAUTION  
(d) to Part II, line 1.  
information, go to IRS.gov TG 61 Taxes  
Schedule B—Initial Tax on  
Undistributed Income  
(Section 4942)  
Excess business holdings. Excess  
business holdings is the amount of  
stock or other interest in a business  
organizations in a business enterprise,  
later.  
Complete Schedule B if you answered  
Yes,to Form 990-PF, Part VI-B,  
question 2b.  
Requirement. If you answered “Yes,to enterprise that the foundation would  
Form 990-PF, Part VI-B, question 3b;  
Form 990, Part V, question 8; or Form  
5227, Part VIII, question 3b, or  
otherwise had excess business  
holdings, complete a Schedule C for  
each business enterprise in which the  
foundation had excess business  
holdings for its tax year beginning in  
2023.  
have to dispose of to a person other  
than a disqualified person in order for  
the foundation's remaining holdings in  
the enterprise to be permitted holdings  
(section 4943(c)(1)). Go to IRS.gov TG  
IRC 4943 for more information.  
Sole proprietorships. In general, a  
private foundation can't have any  
permitted holdings in a business  
enterprise that is a sole proprietorship.  
For exceptions, go to IRS.gov TG 60  
IRC 4943. For a definition of sole  
proprietorship, see Regulations section  
An initial excise tax of 30% is  
imposed on a private foundation's  
undistributed income on the first day of  
the second or any succeeding tax year  
after the tax year in connection with  
which income remains undistributed.  
Use the 2023 Form 4720 to report  
the initial tax on undistributed income for  
tax years beginning in 2022 or earlier  
that remains undistributed at the end of  
the foundation's current tax year  
beginning in 2023. The initial tax won't  
apply to a private foundation's  
Taxes. A private foundation that has  
excess holdings in a business  
enterprise may become liable for an  
excise tax based on the amount of  
holdings. The initial tax is 10% of the  
value of the excess holdings and is  
undistributed income:  
imposed on the last day of each tax year 53.4943-10(e).  
that ends during the taxable period. The  
For any tax year it is an operating  
foundation (as defined in section 4942(j)  
(3) and related regulations or in section  
4942(j)(5)); or  
Corporate voting stock. This stock  
excess holdings are determined on the  
day during the tax year when they were  
the largest.  
entitles a person to vote for the election  
of directors. Treasury stock and stock  
that is authorized but unissued isn't  
voting stock for these purposes. See  
Regulations sections 53.4943-3(b)(1)(ii)  
and 53.4943-3(b)(2)(ii).  
To the extent it didn't distribute an  
amount solely because of an incorrect  
valuation of assets, provided the  
foundation satisfies the requirements of  
section 4942(a)(2); or  
If the foundation keeps the excess  
business holdings after the initial tax  
has been imposed, the foundation  
becomes liable for an additional tax of  
200% of the remaining excess business  
holdings unless it disposes of them  
within the taxable period. However, if the  
foundation disposes of its excess  
business holdings during the correction  
period, the additional tax won't be  
assessed or, if assessed, will be abated  
and if collected, will be credited or  
refunded. For information on the  
correction period, go to IRS.gov TG 60  
For a partnership (including a limited  
partnership) or joint venture, the term  
“profits interest” should be substituted  
for “voting stock.” For any  
For any year for which the initial tax  
was previously assessed or a notice of  
deficiency was issued.  
Line 3. Undistributed income is  
unincorporated business enterprise that  
isn't a partnership, joint venture, or sole  
proprietorship, the term “beneficial  
interest” should be substituted for  
“voting stock.See Regulations section  
53.4943-3(c).  
corrected by making sufficient qualifying  
distributions to compensate for deficient  
qualifying distributions for a prior tax  
year. You must attach a statement that  
describes any qualifying distributions  
made to correct the undistributed  
Nonvoting stock. Corporate equity  
interests that don't have voting power  
should be classified as nonvoting stock.  
Evidences of indebtedness (including  
convertible indebtedness), warrants,  
and other options or rights to acquire  
income and the date(s) those  
distributions were made. If no qualifying  
distributions have been made to correct  
the undistributed income, explain why  
and describe steps you will take to make  
the necessary qualifying distributions. If  
Business enterprise. In general, this  
means the active conduct of a trade or  
business, including any activity regularly  
Instructions for Form 4720 (2023)  
-9-  
       
stock shouldn't be considered equity  
interests. See Regulations section  
53.4943-3(b)(2).  
For a partnership (including a limited  
partnership) or joint venture, the term  
“capital interest” should be substituted  
for “nonvoting stock.” For any  
other than donor advised funds and  
supporting organizations considered to  
be private foundations for purposes of  
section 4943, that had business  
holdings on May 26, 1969 (or holdings  
acquired by trust or will as described  
below), that were more than the current  
limits permit, there are transitional rules  
that permit the foundation to dispose of  
the excess over time without being  
subject to the tax on excess business  
holdings.  
During the first phase, no excess  
business holdings tax was imposed on a  
private foundation for interests held  
since May 26, 1969, if the foundation  
had excess holdings on that date. The  
first phase is:  
Disposition of excess business hold-  
ings within 90 days. Generally, when  
a private foundation acquires excess  
business holdings other than as a result  
of purchase by the foundation (such as  
an acquisition by a disqualified person),  
the foundation won't be taxed on those  
excess holdings if it disposes of enough  
of them so that it no longer has an  
unincorporated business that isn't a  
partnership, joint venture, or sole  
proprietorship, references to nonvoting  
stock don't apply for computation of  
permitted holdings. See Regulations  
section 53.4943-3(c)(4).  
Attribution of business holdings. In  
determining the holdings in a business  
enterprise of either a private foundation  
or a disqualified person, any stock or  
other interest owned directly or indirectly  
by or for a corporation, partnership,  
estate, or trust is considered owned  
proportionately by or for its  
excess. To avoid the tax, the disposition  
must take place within 90 days from the  
date the foundation knew, or had reason  
to know, of the event that caused it to  
have excess business holdings. That  
90-day period will be extended to  
include the period during which federal  
or state securities laws prevent the  
foundation from disposing of those  
excess business holdings. See  
A 20-year period beginning on May  
Regulations section 53.4943-2(a).  
26, 1969, if on that date the foundation  
and all disqualified persons held more  
than a 95% voting interest in the  
enterprise (the 20-year first phase  
expired on May 25, 1989);  
General rules on the permitted hold-  
ings of a private foundation in a  
business enterprise. No excess  
business holdings tax is imposed (a) if a  
private foundation and all disqualified  
persons together hold no more than  
20% of the voting stock of a business  
enterprise, or (b) on nonvoting stock, if  
all disqualified persons together don't  
own more than 20% of the voting stock  
of the business enterprise.  
shareholders, partners, or beneficiaries.  
In general, this rule doesn't apply to  
certain income interests or remainder  
interests of a private foundation in a  
split-interest trust described in section  
4947(a)(2). See Regulations section  
53.4943-8.  
Taxable period. The taxable period  
begins on the first day the foundation  
has excess business holdings and ends  
on the earliest of:  
A 15-year period beginning on May  
26, 1969, if on that date the foundation  
and all disqualified persons together  
had more than a 75% voting stock  
interest (or more than a 75% profits or  
beneficial interest of any unincorporated  
enterprise), or more than a 75% interest  
in the value of all outstanding shares of  
all classes of stock (or more than a 75%  
capital interest of a partnership or joint  
venture) in the enterprise (the 15-year  
first phase expired on May 25, 1984);  
and  
If the private foundation and all  
disqualified persons together don't own  
more than 35% of the enterprise's voting  
stock, and effective control is in one or  
more persons who aren't disqualified  
persons in connection with the  
The mailing date of a notice of  
deficiency, under section 6212, in  
connection with the initial tax on excess  
business holdings related to those  
holdings;  
A 10-year period beginning on May  
foundation, then 35% may be  
The date the excess is eliminated; or  
The date the initial tax on excess  
26, 1969, in all other cases in which the  
foundation had excess business  
substituted for 20% wherever it appears  
in the preceding paragraph. See  
business holdings related to those  
holdings is assessed.  
holdings on May 26, 1969. The 10-year  
first phase expired on May 25, 1979.  
sections 4943(c)(2) and 4943(c)(3).  
If a private foundation and all  
disqualified persons together had  
holdings in a business enterprise of  
more than 20% of the voting stock on  
May 26, 1969, substitute that  
When a notice of deficiency isn't  
mailed because the restrictions on  
assessment and collection are waived  
or because the deficiency is paid, the  
date of filing the waiver or the date of  
paying the tax, respectively, will be  
treated as the end of the taxable period.  
See Regulations section 53.4943-9.  
During the second phase (the  
15-year period after the first phase), if  
the foundation's disqualified persons  
hold more than 2% of the enterprise's  
voting stock, the foundation will be liable  
for tax if the foundation holds more than  
25% of the voting stock or if the  
foundation and its disqualified persons  
together hold more than 50% of the  
voting stock.  
However, during the second phase, if  
a foundation's disqualified persons  
purchase voting stock in a business  
enterprise after July 18, 1984, causing  
the combined holdings of the  
percentage for 20% and for 35% (if the  
holding is greater than 35%), using the  
principles of section 4943(c)(4) that  
apply. However, the percentage  
substituted can't be more than 50%.  
Exceptions to Tax on Excess  
Business Holdings  
The percentage substituted under  
the preceding paragraph is (1) subject  
to reductions and limitations (see  
2% de minimis rule. A private  
sections 4943(c)(4)(A)(ii) and 4943(c)  
(4)(D)), and (2) applicable, both in  
connection with the voting stock and,  
separately, in connection with the value  
of all outstanding shares of all classes of  
stock (see section 4943(c)(4)(A)(iii)).  
foundation won't be treated as having  
excess business holdings in any  
enterprise in which it, together with  
related foundations, as described in the  
instructions for Form 990-PF (under the  
definition for “disqualified person” in the  
General Instructions), owns not more  
than 2% of the voting stock and not  
more than 2% in value of all outstanding  
shares of all classes of stock.  
disqualified persons to exceed 2% of  
the enterprise's voting stock, the  
foundation has 5 years to reduce its  
holdings in the enterprise to below its  
second phase limit before the increase  
will be treated as held by the foundation.  
See sections 4943(c)(4)(D) and 4943(c)  
(6).  
Interests held by a private founda-  
tion (other than donor advised funds  
and supporting organizations) on  
May 26, 1969. For private foundations,  
Instructions for Form 4720 (2023)  
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The first-phase periods must be  
suspended pending the outcome of any  
judicial proceeding the private  
foundation brings and which is  
necessary to reform, or to excuse it from  
compliance with its governing  
instrument or similar instrument in effect  
on May 26, 1969. See section 4943(c)  
(4)(C) and Regulations section  
53.4943-4.  
Holdings acquired by trust or will.  
Holdings acquired under the terms of a  
trust that was irrevocable on May 26,  
1969, or under the terms of a will  
holdings. However, the date of August  
17, 2006, will be substituted for May 26,  
1969.  
holdings to disqualified persons, as long  
as the sales price equals or is more than  
fair market value.  
The excess business holdings  
Donor advised fund. In general, a  
donor advised fund is a fund or account  
separately identified by reference to  
contributions of a donor or donors that is  
owned and controlled by a sponsoring  
organization and for which the donor  
has or expects to have advisory  
involved are interests that are subject to  
the section 4941 transitional rules for  
May 26, 1969, holdings. These interests  
would also be subject to the excess  
business holdings tax if they were not  
reduced by the required amount.  
privileges concerning the distribution or  
investment of the funds. See  
Specific Instructions  
Complete columns (a) and (b) of  
Schedule C if sections 4943(c)(4),  
4943(c)(3) (using the principles of  
4943(c)(4)), or 4943(c)(5) apply.  
Schedule K for further details.  
Sponsoring organization. A  
sponsoring organization is any section  
170(c) organization other than  
governmental entities (described in  
section 170(c)(1) and (2)(A)) that isn't a  
private foundation, as defined in section  
509(a)(3), that maintains one or more  
donor advised funds. See section  
4966(d)(1).  
executed by that date, are treated as  
held by the foundation on May 26, 1969,  
except that the 15- and 10-year periods  
of the first phase for the holdings start  
on the date of distribution under the trust  
or will instead of on May 26, 1969. See  
section 4943(c)(5) and Regulations  
section 53.4943-5. See section 4943(d)  
(1) and Regulations section 53.4943-8  
for rules relating to constructive holdings  
held in a corporation, partnership,  
estate, or trust for the benefit of the  
foundation.  
Complete column (a) and column (c)  
(if applicable) if sections 4943(c)(2) or  
4943(c)(3) (using the principles of  
4943(c)(2)) apply.  
Complete Schedule C for that day  
during the tax year when the  
foundation's excess holdings in the  
enterprise were largest.  
Line 1. Enter in column (a) the  
percentage of voting stock the  
foundation holds in the business  
enterprise.  
If the foundation is using the rules or  
principles for determining present  
holdings under section 4943(c)(4)(A) or  
(D) (or rules similar to that for donor  
advised funds and certain supporting  
organizations), enter in column (b) the  
percentage of value the foundation  
holds in all outstanding shares of all  
classes of stock.  
Supporting organizations. Only  
certain supporting organizations are  
subject to the excess business holdings  
tax under section 4943. These include  
(1) Type III supporting organizations that  
aren't functionally integrated, and (2)  
Type II supporting organizations that  
accept any gift or contribution from a  
person who by himself or in connection  
with a related party controls the  
Gifts or bequests of business hold-  
ings. Except as provided in the  
exception regarding Holdings acquired  
by trust or will (discussed above), there  
is a special rule for private foundations  
that have excess business holdings as a  
result of a change in holdings after May  
26,1969. This rule applies if the change  
is other than by purchase by the  
supported organization that the Type II  
supporting organization supports. (See  
the 2023 Instructions for Schedule A  
(Form 990), Part I, question 11, for help  
in determining the type of your  
foundation or by disqualified persons  
(such as through gift or bequest) and  
the additional holdings result in the  
foundation having excess business  
holdings. In that case, the foundation  
has 5 years to reduce these holdings or  
those of its disqualified persons to  
permissible levels to avoid the tax. See  
section 4943(c)(6) and Regulations  
section 53.4943-6.  
A private foundation that received an  
unusually large gift or bequest of  
business holdings after 1969, and that  
has made a diligent effort to dispose of  
excess business holdings, may apply for  
an additional 5-year period to reduce its  
holdings to permissible levels if certain  
conditions are met. See section 4943(c)  
(7).  
General rules on the permitted hold-  
ings of donor advised funds and cer-  
tain supporting organizations in a  
business enterprise. Rules similar to  
those described above for interests held  
by private foundations on May 26, 1969,  
will be applied to determine if donor  
advised funds or certain supporting  
organizations with interests as of August  
17, 2006, have any excess business  
supporting organization.)  
Don't include in either column (a) or  
(b) stock treated as held by disqualified  
persons:  
Readjustments, distributions, or  
changes in relative value of different  
classes of stock. See Regulations  
section 53.4943-4(d)(10) for special  
rules whereby increases in the  
Under section 4943(c)(6) or  
Regulations sections 53.4943-6 and  
53.4943-10(d), or  
percentage of value of holdings in a  
corporation that result solely from  
changes in the relative values of  
different classes of stock won't result in  
excess business holdings.  
During the first phase if the first phase  
is still in effect (see Regulations sections  
53.4943-4(a), (b), and (c)).  
Line 2. If the foundation is using the  
rules or principles for determining  
present holdings under section 4943(c)  
(4) (or rules similar to that for donor  
advised funds and certain supporting  
organizations), refer to that section and  
Regulations section 53.4943-4(d) to  
determine which entries to record in  
columns (a) and (b). Enter in column (a)  
the excess of the substituted combined  
voting level over the disqualified person  
voting level. Enter in column (b) the  
excess of the substituted combined  
value level over the disqualified person  
value level.  
See Regulations section  
53.4943-6(d) for rules on treatment of  
increases in holdings due to  
readjustments, distributions, or  
redemptions.  
See Regulations section 53.4943-7  
for special rules for readjustments  
involving grandfathered holdings.  
Exceptions from self-dealing taxes  
on certain dispositions of excess  
business holdings. Section 101(I)(2)  
(B) of the Tax Reform Act of 1969  
provides for a limited exception from  
self-dealing taxes for private foundations  
that dispose of certain excess business  
If the foundation is using the rules or  
principles for determining permitted  
holdings under section 4943(c)(2), refer  
Instructions for Form 4720 (2023)  
-11-  
to that section to determine which  
entries to record in column (a). Enter in  
column (a) the percentage, using the  
general rule (section 4943(c)(2)(A)) or  
the 35% rule (see section 4943(c)(2)  
(B)), if applicable, of permitted holdings  
the foundation may have in the  
transaction, describe each transaction  
separately.  
See section 4944(c) and Regulations  
section 53.4944-3.  
Initial taxes on foundation. The initial  
tax is 10% of the amount invested for  
each year or part of a year in the taxable  
period.  
If correction has not been made,  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
Initial taxes on foundation manag-  
ers. When a tax is imposed on an  
investment that jeopardizes the  
enterprise's voting stock. If the  
foundation determines the permitted  
holdings under section 4943(c)(2)(B),  
attach a statement showing effective  
control by a third party.  
Schedule D—Initial Taxes  
on Investments That  
charitable purpose of the foundation,  
the tax will be 10% of the investment for  
each year or part of a year in the taxable  
period, up to $10,000 for any one  
investment. It is imposed on all  
Jeopardize Charitable  
Line 3. Enter the value of any stock,  
interest, etc., in the business enterprise  
that the foundation is required to  
Purpose (Section 4944)  
General Instructions  
foundation managers who took part in  
the act, knowing that it was such an act,  
except for foundation managers whose  
participation was not willful and was due  
to reasonable cause. Any foundation  
manager who took part in making the  
investment must pay the tax.  
dispose of so the foundation's holdings  
in the enterprise are permitted. See  
section 4943 and related regulations.  
Requirement. Complete Schedule D if  
you answered “Yes,to Form 990-PF,  
Part VI-B, question 4a or b; or Form  
5227, Part VIII, question 4a or b. Each  
manager of the organization or trust that  
answered "Yes," to Form 990-PF, Part  
VI-B, question 4a or b; or Form 5227,  
Part VIII, question 4a or b and who took  
part in making the investment should  
also complete Schedule D. Report each  
investment separately. Paying tax and  
filing a Form 4720 are required for each  
year or part of a year in the taxable  
period that applies to the investments  
that jeopardize the foundation's  
A private foundation using the  
section 4943(c)(4) rules, or a donor  
advised fund or supporting organization  
using rules similar to that, has excess  
holdings if line 1 is more than line 2 in  
either column (a) or column (b). Don't  
include in column (b) the value of any  
voting stock included in column (a).  
Specific Instructions  
Part I. Complete this part for all taxable  
investments. Investments that  
jeopardize the carrying out of the  
foundation’s exempt purpose are  
A private foundation using the  
section 4943(c)(2) rules has excess  
holdings if line 1 is more than line 2 in  
column (a) or if the private foundation  
holds nonvoting stock and all  
corrected by selling or otherwise  
disposing of the investment, and holding  
the proceeds of such sale or other  
disposition in investments that do not  
jeopardize the carrying out of the  
foundation's exempt purpose. In column  
(c), for each act of investment listed in  
Part I, indicate whether the investment  
has been corrected. Answer “Yes,if  
correction has been made in whole or in  
part. Answer “No,only if the investment  
has not been corrected in any way.  
charitable purpose. Generally, the  
taxable period begins with the date of  
the investment and ends with the date  
corrective action is completed, a notice  
of deficiency is mailed, or the initial tax  
is assessed, whichever comes first.  
Therefore, in addition to investments  
made in 2023, include all investments  
subject to tax that were made before  
2023 if those investments were not  
removed from jeopardy before 2023 and  
the initial tax was not assessed before  
2023.  
disqualified persons together own more  
than 20% (or 35%, if applicable) of the  
enterprise's voting stock, interest, etc. In  
the latter case, enter in column (c) the  
value of all nonvoting stock the  
foundation holds.  
Line 4. Enter the value of excess  
holdings disposed of under the 90-day  
rule in Regulations section 53.4943-2(a)  
(1)(ii). If other conditions preclude  
imposition of tax on excess business  
holdings, include the value of the  
nontaxable amount on this line and  
check the appropriate boxes on the  
statement page attached to the  
electronic version of Form 4720.  
Organizations not required to file  
electronically may attach an  
If correction has been made, provide  
a detailed description of any correction  
made, and the date of each correction. If  
correction is partial, explain why  
complete correction has not been made.  
If correction is made in more than one  
transaction, describe each transaction  
separately.  
Taxable investments. An investment  
to be taxed on this schedule is an  
investment by a private foundation that  
jeopardizes the carrying out of its  
If correction has not been made,  
exempt purposes (for example, if it is  
determined that the foundation  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
managers, in making the investment,  
didn't exercise ordinary business care  
and prudence, under prevailing facts  
and circumstances, in providing for the  
long- and short-term financial needs of  
the foundation to carry out its exempt  
purposes). See Regulations section  
53.4944-1(a)(2). An investment isn't  
taxed on this schedule if it is a  
explanation.  
Line 5. Compute the excess holdings in  
a business enterprise subject to tax.  
Part II. Enter in column (a) the names  
of all foundation managers who took  
part in making the investments listed in  
Part I. See Initial taxes on foundation  
managers, earlier.  
Line 8. Excess business holdings are  
corrected by taking action as needed  
such that the foundation no longer has  
excess business holdings in a business  
enterprise. Answer “Yes,if the excess  
business holdings have been corrected  
in whole or in part.  
If more than one foundation manager  
program-related investment; that is, one  
whose primary purpose is one or more  
of those described in section 170(c)(2)  
(B) (religious, charitable, educational,  
etc.). A significant purpose of such an  
investment can't be the production of  
income or the appreciation of property.  
is listed in column (a), each is  
individually liable for the entire amount  
of tax in connection with the investment.  
However, the foundation managers who  
are liable for the tax may prorate  
If correction has been made, provide  
a detailed description of any correction  
made, and the date of each correction. If  
correction is made in more than one  
payment among themselves. Enter in  
Instructions for Form 4720 (2023)  
-12-  
   
column (c) the tax each foundation  
manager will pay.  
If correction is made in more than one  
transaction, describe each transaction  
separately.  
Exceptions. Section 4945(d)(4)(B)  
provides an exception to taxable  
A foundation manager filing this Form expenditures that applies to certain  
If correction has not been made,  
4720 should carry the appropriate  
amount in column (d) to Part II, line 2.  
grants to organizations when the  
granting foundation exercises  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
expenditure responsibility described in  
section 4945(h). Additional information  
on special rules and exceptions to the  
definition of taxable expenditures given  
above can be found at IRS.gov TG 62  
Schedule E—Initial Taxes  
on Taxable Expenditures  
(Section 4945)  
Part II. Enter in column (a) the names  
of all foundation managers who agreed  
to make the taxable expenditure. See  
Initial tax on foundation managers,  
earlier. If more than one foundation  
manager is listed in column (a), each is  
individually liable for the entire tax in  
connection with the expenditure.  
However, the foundation managers who  
are liable for the tax may prorate the  
payment among themselves. Enter in  
column (c) the tax each foundation  
manager will pay.  
General Instructions  
Initial tax on foundation. An initial tax  
of 20% is imposed on each taxable  
expenditure of the foundation.  
Requirement. Complete Schedule E if  
you answered “Yes,to Form 990-PF,  
Part VI-B, question 5b, or Form 5227,  
Part VIII, question 5b. Complete Parts I  
and II of Schedule E only for  
Initial tax on foundation managers.  
When a tax is imposed on a taxable  
expenditure of the foundation, a tax of  
5% of the expenditure will be imposed  
on any foundation manager who agreed  
to the expenditure and who knew that it  
was a taxable expenditure. Foundation  
managers whose participation was not  
willful and was due to reasonable cause  
aren't liable for the tax. Any foundation  
manager who took part in the  
expenditures that are subject to tax.  
Note. Also, see Schedule F, Initial  
Taxes on Political Expenditures.  
A foundation manager filing this Form  
4720 should carry the appropriate  
amount in column (d) to Part II, line 3.  
Taxable expenditures. With certain  
exceptions, this means any amount a  
private foundation pays or incurs:  
1. To carry on propaganda or  
otherwise influence any legislation  
through:  
Schedule F—Initial Taxes  
on Political Expenditures  
(Section 4955)  
expenditure and is liable for the tax must  
pay the tax. The maximum total amount  
of tax on all foundation managers for  
any one taxable expenditure is $10,000.  
If more than one foundation manager is  
liable for tax on a taxable expenditure,  
all those foundation managers are jointly  
and severally liable for the tax.  
a. An attempt to influence general  
public opinion or any segment of it, and  
General Instructions  
b. Communication with any member  
or employee of a legislative body, or with  
any other government official or  
employee who may take part in  
formulating legislation;  
2. To influence the outcome of any  
specific public election, or to conduct,  
directly or indirectly, any voter  
registration drive;  
Requirement. Complete Schedule F if  
you answered “Yes,to question 5a(2)  
and 5b of Form 990-PF, Part VI-B.  
Complete Schedule F if you entered an  
amount on line 2 of Schedule C (Form  
990), Part I-A. Complete Schedule F if  
you are otherwise a section 501(c)(3)  
organization that made a political  
expenditure.  
Specific Instructions  
Part I. Complete this part for all taxable  
expenditures. Enter in column (f) the  
number designation from Form 990-PF,  
Part VI-B, question 5a, or Form 5227,  
Part VIII, line 5 that applies to the act; for  
example, “5a(1).”  
3. As a grant to an individual for  
travel, study, or other purposes;  
Political expenditures. These include  
any amount paid or incurred by a  
section 501(c)(3) organization that  
participates or intervenes in (including  
the publication or distribution of  
4. As a grant to an organization not  
described in section 509(a)(1), (2), or  
(3) or that isn't an exempt operating  
foundation (as defined in section  
A taxable expenditure is corrected by  
(a) recovering part or all of the  
expenditure to the extent recovery is  
possible, and where full recovery isn't  
possible, such additional corrective  
action as is prescribed by regulations; or  
(b) if the taxable expenditure is due to  
failure to comply with requirements  
described in section 4945(h)(2) or (3)  
(expenditure responsibility), obtaining or  
making the report in question. In column  
(d), for each act of taxable expenditure  
listed in Part I, indicate whether the  
investment has been corrected. Answer  
Yes,if correction has been made in  
whole or in part. Answer only “No,if the  
taxable expenditure has not been  
corrected in any way.  
statements) any political campaign on  
behalf of, or in opposition to, any  
4940(d)(2)). This includes grants to:  
a. Type I, Type II, and Type III  
functionally integrated supporting  
organizations (as described in section  
4942(g)(4)(B) and (C)) if a disqualified  
person of the foundation controls such  
supporting organization or the  
candidate for public office. The tax is  
imposed even if the political expenditure  
gives rise to a revocation of the  
organization's section 501(c)(3) status.  
These taxes apply in the case of both  
public charities and private foundations.  
When tax is imposed under this  
supported organizations of such  
supporting organizations, and  
provision in the case of a private  
b. Type III supporting organizations  
(as described in section 4943(f)(5)(A))  
that aren't functionally integrated with  
their supported organizations; or  
5. For any purpose other than  
religious, charitable, scientific, literary,  
educational, or public purposes, or the  
prevention of cruelty to children or  
animals.  
foundation, however, the expenditure in  
question won't be treated as a taxable  
expenditure under section 4945.  
For an organization formed primarily  
to promote the candidacy or prospective  
candidacy of an individual for public  
office (or that is effectively controlled by  
a candidate or prospective candidate  
and is used primarily for such  
If correction has been made, provide  
a detailed description of any correction  
made, and the date of each correction. If  
correction is partial, explain why  
complete correction has not been made.  
Instructions for Form 4720 (2023)  
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purposes), amounts paid or incurred for  
any of the following purposes are  
deemed political expenditures:  
An electing member of an affiliated  
group that is included in a group return,  
should enter on line 1 its share of the  
excess grass root lobbying expenditures  
of the affiliated group, and on line 2 its  
share of the excess lobbying  
Part II. Enter in column (a) the names  
of all managers who took part in making  
the political expenditures listed in Part I.  
See Initial tax on organization managers  
or foundation managers, earlier.  
If more than one manager is listed in  
column (a), each is individually liable for  
the entire amount of tax on the  
expenditure. However, the managers  
who are liable for the tax may prorate  
payment among themselves. Enter in  
column (c) the tax each manager will  
pay.  
Remuneration to the candidate or  
prospective candidate for speeches or  
other services;  
Travel expenses of the individual;  
Expenses of conducting polls,  
expenditures of the affiliated group. Take  
these amounts from the schedule of  
excess lobbying expenditures that must  
be attached to Schedule C (Form 990).  
See the Instructions for Schedule C  
(Form 990), Part II-A, for a discussion of  
the lobbying provisions, including how to  
figure the taxable amount.  
surveys, or other studies, or preparing  
papers or other material for use by the  
individual;  
Expenses of advertising, publicity,  
and fundraising for such individual; and  
Any other expense which has the  
An organization manager filing this  
Form 4720 should carry the appropriate  
amount in column (d) to Part II, line 4.  
primary effect of promoting public  
recognition or otherwise primarily  
accruing to the benefit of the individual.  
Schedule H—Taxes on  
Disqualifying Lobbying  
Expenditures (Section  
4912)  
Initial tax on organization or founda-  
tion. The initial tax on the organization  
or foundation is 10% of the amount  
involved.  
Schedule G—Tax on  
Excess Lobbying  
Expenditures (Section  
4911)  
General Instructions  
Initial tax on organization managers  
or foundation managers. An initial tax  
of 2.5% of the amount involved (up to  
$5,000 of tax on any one expenditure) is  
imposed on any manager who agrees to  
an expenditure, knowing that it is a  
political expenditure, unless the  
Requirement. Schedule H must be  
completed by certain organizations  
whose section 501(c)(3) status is  
revoked because of excess lobbying  
activities.  
Requirement. Schedule G must be  
completed by eligible section 501(c)(3)  
organizations that elected to be subject  
to the limitations on lobbying  
expenditures, under section 501(h) and  
that made excess lobbying expenditures  
as defined in section 4911(b).  
Exceptions. These taxes aren't  
agreement isn't willful and is due to  
reasonable cause.  
imposed on a private foundation (whose  
lobbying expenditures may be subject to  
Any manager who agreed to the  
Except as noted below, follow the line the tax on taxable expenditures). These  
expenditure must pay the tax.  
instructions on Schedule G.  
taxes also aren't imposed on any  
organization for which a section 501(h)  
election was in effect at the time of the  
lobbying expenditures or that was not  
eligible to make a section 501(h)  
election.  
Affiliated groups. Two or more  
organizations are members of an  
affiliated group of organizations for the  
purposes of section 4911 only if:  
Specific Instructions  
Part I. Complete this part for all political  
expenditures. A political expenditure  
described in section 4955 is corrected  
by recovering part or all of the  
The governing instrument of one  
organization requires it to be bound by  
decisions of the other organization on  
legislative issues; or  
Tax on organization. A tax of 5% of  
the lobbying expenditures is imposed on  
the organization whose section 501(c)  
(3) status is revoked because of excess  
lobbying activities.  
Tax on organization managers. A tax  
of 5% of the lobbying expenditures is  
also imposed on any manager who  
willfully and without reasonable cause  
consented to the lobbying expenditures,  
knowing that they would likely result in  
the organization no longer qualifying  
under section 501(c)(3).  
expenditure to the extent recovery is  
possible, establishment of safeguards to  
prevent future political expenditures,  
and where full recovery isn't possible,  
such additional corrective action as is  
prescribed by the regulations. In column  
(d), for each act of political expenditure  
listed in Part I, indicate whether the  
investment has been corrected. Answer  
Yes,if correction has been made in  
whole or in part. Answer “No,only if the  
political expenditure has not been  
corrected in any way.  
The governing board of one  
organization includes persons who are  
specifically designated representatives  
of another such organization or are  
members of the governing board,  
officers or paid executive staff members  
of such other organization, and who, by  
aggregating their votes, hold sufficient  
voting power to cause or prevent action  
on legislative activities by the first  
organization. See section 4911(f) and  
If correction has been made, provide  
There is no limit on the amount of this  
tax that may be imposed against either  
the organization or its managers. Any  
organization manager who agreed to the  
expenditure must pay the tax.  
Regulations section 56.4911-7.  
a detailed description of any correction  
made, and the date of each correction. If  
correction is partial, explain why  
complete correction has not been made.  
If correction is made in more than one  
transaction, describe each transaction  
separately.  
A nonelecting member of an affiliated  
group doesn’t file Form 4720.  
Electing members of an affiliated  
group may file a group return or may file  
separately. An electing member of an  
affiliated group that files a separate  
return, should enter on line 1 the amount  
from Schedule C (Form 990), Part II-A,  
column (a), line 1h. Enter on line 2 the  
amount from Schedule C (Form 990),  
Part II-A, column (a), line 1i.  
Specific Instructions  
Part I. Complete this part for all  
If correction has not been made,  
disqualifying lobbying expenditures.  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
Part II. Enter in column (a) the names  
of all organization managers who took  
part in making disqualifying lobbying  
Instructions for Form 4720 (2023)  
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expenditures listed in Part I. See Tax on  
organization managers, earlier.  
Tax on disqualified persons. The  
tax is 25% of the excess benefit and is  
paid by any disqualified person who  
improperly benefited from the excess  
benefit transaction.  
loan, compensation, or other similar  
payment. Also, any loan provided to a  
disqualified person that isn't an  
organization described in section 509(a)  
(1), (2), or (4) or a supported  
If more than one organization  
manager is listed in column (a), each is  
individually liable for the entire amount  
of tax in connection with the  
organization of the supporting  
organization exempt under section  
501(c)(4), (5), (6) and described in the  
last sentence of section 509(a) is  
considered an excess benefit  
transaction.  
Tax on organization managers.  
When tax is imposed on a disqualified  
person for any excess benefit  
expenditure. However, the managers  
who are liable for the tax may prorate  
payment among themselves. Enter in  
column (c) the tax each manager will  
pay.  
transaction, then tax is also imposed on  
any manager who knowingly  
participated in the excess benefit  
transaction. The tax is 10% of the  
excess benefit, not to exceed $20,000  
for each transaction.  
A manager filing this Form 4720  
should carry the appropriate amount in  
column (d) to Part II, line 5.  
Donor advised fund transactions  
occurring after August 17, 2006. Any  
grant, loan, compensation, or other  
similar payment from any donor advised  
fund to a donor, donor advisor, family  
member, or 35% controlled entity is an  
excess benefit transaction. The amount  
of the excess benefit is the amount of  
such grant, loan, compensation, or other  
similar payment.  
Taxable period. Taxable period  
means the period beginning with the  
date on which the excess benefit  
transaction occurs and ending on the  
earlier of:  
1. The date a notice of deficiency  
was mailed to the disqualified person for  
the initial tax on the excess benefit  
transaction, or  
Schedule I—Initial Taxes  
on Excess Benefit  
Transactions (Section  
4958)  
General Instructions  
Excess benefit. Excess benefit  
means the excess of the economic  
benefit received from the applicable  
organization over the consideration  
given (including services) by a  
disqualified person, except in the  
immediately preceding special rules  
where the entire amount of the grant,  
loan, compensation, or other similar  
payment is considered the excess  
benefit.  
Requirement. Schedule I must be  
completed by any Applicable  
2. The date on which the initial tax  
on the excess benefit transaction for the  
disqualified person is assessed.  
organization or Disqualified person  
that engaged in an Excess benefit  
transaction, and by any fund manager  
who knowingly participated in the  
excess benefit transaction. These terms  
are discussed below. Each person must  
file separately.  
Excess benefit transaction. An  
excess benefit transaction is any  
transaction in which:  
1. An economic benefit is provided  
by the organization directly or indirectly  
to or for the use of, any disqualified  
person, if the value of the economic  
benefit provided exceeds the value of  
the consideration (including the  
Applicable organization. In  
general, an applicable organization is  
any section 501(c)(3) (except a private  
foundation), 501(c)(4), or 501(c)(29)  
organization.  
Also, an applicable organization  
includes any organization that was a  
section 501(c)(3) (except a private  
foundation), 501(c)(4), or 501(c)(29)  
organization at any time during a 5-year  
period ending on the date of an excess  
benefit transaction (the lookback  
period).  
However, an economic benefit won't  
be treated as compensation for services  
unless the applicable organization  
clearly indicates its intent to treat the  
economic benefit (when paid) as  
performance of services) received for  
providing such benefit, or  
compensation for a disqualified person's  
services. See Regulations section  
53.4958-4(c) for more information.  
2. The amount of any economic  
benefit provided to, or for the use of, a  
disqualified person is determined in  
whole or in part by the revenues of the  
organization and violates the private  
inurement prohibition rules (to the extent  
provided in regulations).  
Exception. Generally, section 4958  
doesn't apply to any fixed payment  
made to a person under an initial  
contract. See Regulations section  
53.4958-4(a)(3) for details.  
Special rule. The initial and additional  
taxes of this section don't apply if the  
transaction described in 1 under Excess  
benefit transaction was pursuant to a  
written contract in effect on September  
13, 1995, and at all times after that date  
until the time that the transaction occurs.  
Initial taxes. Excise taxes are imposed  
under section 4958 on each excess  
benefit transaction. If a manager  
Until final regulations are issued  
regarding the special rules for  
!
CAUTION  
revenue sharing transactions  
receives an excess benefit from an  
excess benefit transaction, the manager  
may be liable for the tax on disqualified  
persons and the tax on the organization  
manager. The applicable organization  
must complete Schedule I. However, the  
excise tax under section 4958 is  
described in 2 above, these transactions  
will only be subject to section 4958  
liability under the general rule described  
in 1 above.  
However, if a written contract is  
materially modified, it is treated as a  
new contract entered into as of the date  
of the material modification. A material  
modification includes amending the  
contract to extend its term or to increase  
the compensation payable to a  
Supporting organization  
transactions occurring after July 25,  
2006. For any supporting organization,  
as defined in section 509(a)(3), any  
grant, loan, compensation, or other  
similar payment provided to a  
imposed on the disqualified person. The  
organization completing Schedule I  
should not report the initial tax amount  
on Part II and should not pay the tax  
liability of any disqualified person or  
organization manager. See Abatement,  
earlier, for information on abatement,  
refund, or relief from this tax.  
substantial contributor (defined later),  
family member, or 35% controlled entity  
will be considered an excess benefit  
transaction. The amount of the excess  
benefit is the amount of such grant,  
disqualified person.  
Disqualified person. For purposes of  
this Schedule I, a disqualified person  
means:  
Instructions for Form 4720 (2023)  
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1. Any person (at any time during  
the 5-year period ending on the date of  
the transaction) in a position to exercise  
substantial influence over the affairs of  
the organization,  
Investment advisor. Investment  
advisor means for any sponsoring  
organization, any person compensated  
by such organization (but not an  
employee of such organization) for  
managing the investment of, or  
providing investment advice for assets  
maintained in donor advised funds  
maintained by such sponsoring  
organization.  
correction is partial, explain why  
complete correction has not been made.  
If correction is made in more than one  
transaction, describe each transaction  
separately.  
If correction has not been made,  
2. A family member of an individual  
provide a detailed explanation of why  
correction hasn't been made and what  
steps are being taken to make the  
correction.  
described in 1 above, and  
3. A 35% controlled entity of a  
person described in 1 or 2 above.  
Family members. Family members  
of a disqualified person described in 1  
above include a disqualified person's  
spouse, ancestors, children,  
For organization managers, the tax is  
the lesser of 10% of the excess benefit  
or $20,000. This tax is computed on  
each transaction.  
Part II. Enter in column (a) the names  
of all disqualified persons who took part  
in the excess benefit transactions. If  
more than one disqualified person took  
part in an excess benefit transaction,  
each is individually liable for the entire  
tax on the transaction. But the  
Sponsoring organization. See the  
Schedule K instructions for a definition  
of sponsoring organization.  
grandchildren, great grandchildren, and  
brothers and sisters (whether by whole-  
or half-blood). It also includes the  
spouse of the children, grandchildren,  
great grandchildren, brothers, or sisters  
(whether by whole- or half-blood).  
Substantial contributor. In  
general, a substantial contributor means  
any person who contributed or  
bequeathed an aggregate of more than  
$5,000 to the organization, if that  
amount is more than 2% of the total  
contributions and bequests received by  
the organization before the end of the  
tax year of the organization in which the  
contribution or bequest is received by  
the organization from such person. A  
substantial contributor includes the  
grantor of a trust.  
35% controlled entity. The term  
35% controlled entity means:  
disqualified persons who are liable for  
the tax may prorate the payment among  
themselves. Enter in column (c) the tax  
to be paid by each disqualified person.  
Carry the total amount in column (d)  
for each disqualified person to Part II,  
line 6.  
A corporation in which a disqualified  
person described in 1 or 2 above owns  
more than 35% of the total combined  
voting power,  
A partnership in which such persons  
own more than 35% of the profits  
interest, or  
Specific Instructions  
Part I. List each excess benefit  
Part III. Enter in column (a) the names  
of all managers who knowingly took part  
in the excess benefit transactions listed  
in Part I. If more than one manager  
knowingly took part in an excess benefit  
transaction, each is individually liable for  
the entire tax in connection with the  
transaction. But the managers liable for  
the tax may prorate the payment among  
themselves. Enter in column (c) the tax  
to be paid by each organization  
A trust or estate in which such  
transaction in Part I, column (d). Enter  
the date of the transaction in column (b)  
and the amount of the excess benefit in  
column (e). Compute the tax on the  
excess benefit for disqualified persons  
and enter it in column (f). Compute any  
tax on the excess benefit for  
persons own more than 35% of the  
beneficial interest.  
In determining the holdings of a  
business enterprise, any stock or other  
interest owned directly or indirectly shall  
apply.  
For donor advised funds, sponsor-  
ing organizations, and certain sup-  
porting organization transactions  
organization managers and enter the  
amount in column (g). The organization  
reporting one or more excess benefit  
occurring after August 17, 2006. The transactions should not carry totals from  
manager.  
following persons will be considered  
disqualified persons along with certain  
family members and 35% controlled  
entities associated with them:  
column (f) or column (g) to Part II, line 6.  
A manager filing this Form 4720  
should carry the appropriate amount in  
column (d) to Part II, line 6.  
An excess benefit transaction is  
corrected by undoing the excess benefit  
to the extent possible and taking any  
additional measures necessary to place  
the organization in a financial position  
not worse than that in which it would be  
if the disqualified person had been  
dealing under the highest fiduciary  
standards, except that in the case of any  
correction of an excess benefit  
Schedule J—Taxes on  
Being a Party to Prohibited  
Tax Shelter Transactions  
(Section 4965)  
General Instructions  
Requirement.  
1. Complete Schedule J if you are  
an entity described in section 501(c),  
501(d), or 170(c) (other than the United  
States) or an Indian tribal government  
(within the meaning of section 7701(a)  
(40)) and you received proceeds from or  
have net income attributable to a  
prohibited tax shelter transaction  
(PTST).  
Donors of donor advised funds,  
Donor advisors of donor advised  
funds,  
Investment advisors of sponsoring  
organizations, and  
Disqualified persons of a section  
509(a)(3) supporting organization for the transaction involving a donor advised  
organizations that organization  
supports.  
fund no amount repaid in a manner  
prescribed by the Secretary may be  
held in any donor advised fund. In  
column (c), for each act of excess  
benefit transaction in Part I, indicate  
whether the act has been corrected.  
Answer “Yes,if correction has been  
made in whole or in part. Answer “No,”  
only if the transaction has not been  
corrected in any way.  
For certain supporting  
organization transactions occurring  
after July 25, 2006. Substantial  
contributors to supporting organizations  
will also be considered disqualified  
persons along with their family members  
and 35% controlled entities.  
If correction has been made, provide  
Donor advised fund. See the  
Schedule K instructions for a definition  
of donor advised fund.  
2. Complete Schedule J if you are  
a detailed description of any correction  
made, and the date of each correction. If  
an entity manager of such an entity who  
Instructions for Form 4720 (2023)  
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approved the entity listed in section  
4965(c) as (or otherwise caused the  
entity to be) a party to a PTST at any  
time during the tax year and who knew  
(or had reason to know) that the  
transaction is a PTST.  
Part V of Form 990, or if you are a fund  
manager of a sponsoring organization  
who agreed to the making of a taxable  
distribution knowing that it was a taxable  
distribution. Report each taxable  
distribution separately. These terms are  
discussed below.  
Taxable distribution. A taxable  
distribution is any distribution from a  
donor advised fund to any natural  
person or to any other person if:  
1. The distribution is for any purpose  
other than one specified in section  
170(c)(2)(B), or  
2. The sponsoring organization  
maintaining the donor advised fund  
doesn't exercise expenditure  
responsibility with respect to such  
distribution in accordance with section  
4945(h).  
Allocation of net income and pro-  
ceeds to a tax year. The net income  
and proceeds attributable to a  
prohibited tax shelter transaction must  
be allocated to a particular tax year in a  
manner consistent with the entity's  
established method of accounting for  
federal income tax purposes. If an entity  
hasn't established a method of  
See the following guidance and any  
future guidance for details.  
Notice 2006-65, 2006-31 I.R.B. 102;  
Notice 2007-18, 2007-9 I.R.B. 608;  
T.D. 9334, 2007-34 I.R.B. 382; and  
T.D. 9492, 2010-33 I.R.B. 242.  
accounting for federal income tax  
purposes, the entity must use the cash  
receipts and disbursements method to  
determine the amount and timing of net  
income and proceeds attributable to a  
prohibited tax shelter transaction.  
If an entity has an established  
method of accounting other than the  
cash method, the entity may use the  
cash method to determine the amount  
of the net income and proceeds  
attributable to a prohibited tax shelter  
transaction.  
Managers of tax favored  
retirement plans, individual  
TIP  
retirement arrangements, and  
savings arrangements described in  
sections 401(a), 403(a), 403(b), 529,  
457(b), 408(a), 220(d), 408(b), 530, or  
223(d) must report and pay tax due  
under section 4965(a)(2) on Form 5330.  
However, a taxable distribution  
doesn't include a distribution from a  
donor advised fund to:  
1. Any organization described in  
section 170(b)(1)(A) (other than a  
disqualified supporting organization),  
Prohibited tax shelter transaction. In  
general, a prohibited tax shelter  
transaction means any listed transaction  
(including a subsequently listed  
transaction) and any prohibited  
reportable transaction.  
Specific Instructions  
Part I. Complete this part for each  
transaction if during the tax year the  
entity received proceeds from or has net  
income attributable to a PTST.  
2. The sponsoring organization of  
Listed transaction. A listed  
Figure the tax for each transaction as  
such donor advised fund, or  
transaction includes any transaction that  
is the same as or substantially similar to  
one of the types of transactions that the  
IRS has determined to be a tax  
follows.  
3. Any other donor advised fund.  
If column (e) was answered “Yes,”  
then enter the larger of the column (f) or  
column (g) amount in column (h).  
Sponsoring organization. A  
sponsoring organization is a section  
170(c) organization that isn't a  
avoidance transaction. These  
If column (e) was answered “No,then  
transactions are identified by notice,  
regulation, or other form of published  
guidance as a listed transaction. For  
existing guidance, see Notice 2009-59,  
2009-31 I.R.B. 170.  
multiply the larger of the amount in  
column (f) or column (g) by 21% (0.21)  
and enter the result in column (h).  
government organization (as referred to  
in section 170(c)(1) and (2)(A)) or a  
private foundation and maintains one or  
more donor advised funds.  
After the tax has been figured for all  
PTSTs entered on Schedule J, then total  
column (h) and enter the amount on the  
Total line and on line 9 of Part I.  
Part II. Enter in column (a) the names  
of all entity managers who approved the  
entity as (or otherwise caused the entity  
to be) a party to a PTST at any time  
during the tax year and who knew or  
had reason to know that the transaction  
is a PTST.  
For updates to this list, go to the IRS  
Donor advised fund. A donor advised  
fund is a fund or account:  
transactions. The listed transactions in  
the above notices and rulings will also  
be periodically updated in future issues  
of the Internal Revenue Bulletin.  
1. Which is separately identified by  
reference to contributions of a donor or  
donors,  
2. Which is owned and controlled by  
a sponsoring organization, and  
Subsequently listed transaction.  
A subsequently listed transaction is a  
transaction that is identified in published  
guidance as a listed transaction after  
the entity has entered into the  
3. For which the donor (or any  
person appointed or designated by the  
donor) has or expects to have advisory  
privileges concerning the distribution or  
investment of the funds held in the  
donor advised funds or accounts  
because of the donor's status as a  
donor.  
A manager filing this Form 4720  
should carry the appropriate amount in  
column (d) to Part II, line 7.  
transaction and that was not a  
confidential transaction or transaction  
with contractual protection at the time  
the entity entered into the transaction.  
Schedule K—Taxes on  
Taxable Distributions of  
Sponsoring Organizations  
Maintaining Donor  
Advised Funds (Section  
4966)  
Exception. A donor advised fund  
doesn't include:  
1. A fund or account that makes  
distributions only to a single identified  
organization or governmental entity, or  
2. Any fund or account with respect  
to which a donor or donor advisor (as  
defined in the Schedule L instructions)  
gives advice about which individuals  
Prohibited reportable transaction. A  
prohibited reportable transaction is any  
confidential transaction or any  
transaction with contractual protection  
that is a reportable transaction. See  
Regulations sections 1.6011-4(b)(3)  
and (4), and the Instructions for Form  
8886-T, Disclosure by Tax-Exempt Entity  
Regarding Prohibited Tax Shelter  
Transaction, for more information.  
General Instructions  
Requirement. Complete Schedule K if  
you answered “Yes,to question 9a in  
Instructions for Form 4720 (2023)  
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receive grants for travel, study, or similar  
purposes, if:  
party who received the benefit are jointly  
and severally liable for the tax.  
Tax on fund managers. If a tax is  
imposed on a prohibited benefit  
Schedule L—Taxes on  
Prohibited Benefits  
Distributed From Donor  
Advised Funds (Section  
4967)  
a. Such person's advisory privileges  
are performed exclusively by such  
person in their capacity as a committee  
member of which all the committee  
members are appointed by the  
received by a donor, donor advisor, or  
related person, a tax of 10% of the  
amount of the prohibited benefit is  
imposed on any fund manager who  
agreed to the distribution knowing that it  
would confer a prohibited benefit. Any  
fund manager who took part in the  
distribution and is liable for the tax must  
pay the tax. The maximum amount of  
tax on all fund managers for any one  
taxable distribution is $10,000. If more  
than one fund manager is liable for tax  
on a taxable distribution, all such  
managers are jointly and severally liable  
for the tax.  
sponsoring organization,  
General Instructions  
b. No combination of donors, donor  
advisors, or persons related (as defined  
in the Schedule L instructions) to donors  
or donor advisors, directly or indirectly  
control the committee, and  
c. All grants from the fund or  
account are awarded on an objective  
and nondiscriminatory basis according  
to a procedure approved in advance by  
the board of directors of the sponsoring  
organization. The procedure must be  
designed to ensure that all grants meet  
the requirements of section 4945(g)(1),  
(2), or (3).  
Requirement. A sponsoring  
organization of donor advised funds that  
answered “Yes,to Form 990, Part V,  
line 9b, or that otherwise distributed  
prohibited benefits under section 4967,  
must complete Schedule L. In addition,  
a donor, donor advisor, or related party  
that (1) advised a distribution that  
provided a prohibited benefit under  
section 4967, or (2) that received such a  
benefit, and any fund manager who  
agreed to the distribution knowing that it  
would confer a prohibited benefit, must  
complete Schedule L. Report each  
distribution separately. Complete Parts I,  
II, and III of Schedule L only in  
Exception. If a tax is imposed under  
section 4958 for the same transaction,  
then no additional tax is imposed under  
section 4967 on that transaction.  
Tax on sponsoring organization. A  
tax of 20% of the amount of each  
taxable distribution is imposed on the  
sponsoring organization.  
Tax on fund manager. If a tax is  
imposed on a taxable distribution of the  
sponsoring organization, a tax of 5% of  
the distribution will be imposed on any  
fund manager who agreed to the  
Specific Instructions  
connection with distributions made by a  
sponsoring organization from a donor  
advised fund which results in a  
Part I. Complete this part for all  
prohibited benefits.  
prohibited benefit. (See the instructions  
for Schedule K for definitions of the  
terms sponsoring organization and  
donor advised fund). An organization  
reporting a prohibited benefit on  
Part II. Enter in column (a) the names  
of all donors, donor advisors, and  
related persons who received a  
prohibited benefit or advised as to the  
distribution of such benefit. If more than  
one donor, donor advisor, or related  
person is listed in column (a) for one  
distribution, each is individually liable for  
the entire tax for that distribution.  
distribution knowing that it was a taxable  
distribution. Any fund manager who took  
part in the distribution and is liable for  
the tax must pay the tax. The maximum  
amount of tax on all fund managers for  
any one taxable distribution is $10,000.  
If more than one fund manager is liable  
for tax on a taxable distribution, all such  
managers are jointly and severally liable  
for the tax.  
Schedule L is not liable for the tax and  
should not report any tax amount on  
Part II, line 9.  
Prohibited benefit. If any donor, donor  
advisor, or related party advises the  
sponsoring organization about making a  
distribution which results in a donor,  
donor advisor, or related party receiving  
(either directly or indirectly) a more than  
incidental benefit, then such benefit is a  
prohibited benefit.  
However, the donors, donor advisors, or  
related persons who are liable for the  
tax may prorate the payment among  
themselves. Enter in column (c) the tax  
each donor, donor advisor, or related  
person will pay for each distribution for  
which such donor, donor advisor, or  
related person owes a tax.  
A donor, donor advisor, or related  
person filing this Form 4720 should  
carry the apportioned amount in  
Schedule L, Part II, column (d) to Part II,  
line 9.  
Specific Instructions  
Donor advisor. A donor advisor is any  
person appointed or designated by a  
donor to advise a sponsoring  
Part I. Complete this part for all taxable  
distributions.  
Part II. Enter in column (a) the names  
of all fund managers who agreed to  
make the taxable distribution. If more  
than one fund manager is listed in  
column (a) for one distribution, each is  
individually liable for the entire tax in  
connection with that distribution.  
However, the fund managers who are  
liable for the tax may prorate the  
payment among themselves. Enter in  
column (c) the tax each manager will  
pay for each distribution for which such  
manager owes a tax.  
organization on the distribution or  
investment of amounts held in the  
donor's fund or account.  
Part III. Enter in column (a) the names  
of all fund managers who agreed to  
make the distribution conferring the  
prohibited benefit. If more than one fund  
manager is listed in column (a) for one  
distribution, each is individually liable for  
the entire tax for that distribution.  
Related party. A related party includes  
any family member or 35% controlled  
entity. See the General Instructions for  
Schedule I for a definition of those  
terms.  
Tax on donor, donor advisor, or rela-  
ted person. A tax of 125% of the  
However, the fund managers who are  
liable for the tax may prorate the  
benefit resulting from the distribution is  
imposed on both the party who advised  
as to the distribution (which might be a  
donor, donor advisor, or related party)  
and the party who received such benefit  
(which might be a donor, donor advisor,  
or related party). The advisor and the  
payment among themselves. Enter in  
column (c) the tax each donor advisor,  
or related person will pay for each  
distribution for which such donor, donor  
advisor, or related person owes a tax.  
A fund manager filing this Form 4720  
should carry the apportioned amount in  
column (d) to Part II, line 8.  
Instructions for Form 4720 (2023)  
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A fund manager filing this Form 4720  
should carry the total amount in  
line 1 on line 2 and on Part I, line 12.  
This is the CHNA excise tax under  
Remuneration exceptions. For  
purposes of this provision, remuneration  
does not include:  
Schedule L, Part III, column (d) to Part II, section 4959.  
line 9.  
Designated Roth contributions (as  
defined in section 402A(c)),  
Schedule N—Tax on  
The portion of any remuneration paid  
Schedule M—Tax on  
Hospital Organization for  
Failure to Meet the  
to a licensed medical professional  
(including a veterinarian) which is for the  
performance of medical or veterinary  
services by such professional, or  
Excess Executive  
Compensation (Section  
4960)  
Community Health Needs  
Assessment Requirements  
(Sections 4959 and 501(r)  
(3))  
Remuneration the deduction for  
General Instructions  
which is not allowed by reason of  
section 162(m).  
Requirement. Complete Schedule N if  
you answered “Yes” to question 15 in  
Part V of Form 990, question 8 of Part  
VI-B of Form 990-PF, or if you are an  
ATEO (as defined earlier) or a related  
organization but only if you are liable for  
the tax under section 4960(a). Section  
4960(a) imposes an excise tax of 21%  
on the amount of remuneration paid by  
an ATEO with respect to employment of  
any covered employee in excess of $1  
million and on any excess parachute  
payment paid by such organization to  
any covered employee.  
Remuneration from related  
organizations. Remuneration of a  
covered employee by an ATEO includes  
any remuneration paid with respect to  
employment of such employee by any  
related person or governmental entity,  
whether taxable or tax-exempt.  
General Instructions  
Requirements. Section 4959 imposes  
an excise tax on hospital organizations  
that fail to meet the section 501(r)(3)  
requirements in any tax year.  
Section 501(r)(3) requirements  
pertain to a hospital organization  
conducting a community health needs  
assessment (CHNA). The requirements,  
which apply separately to each hospital  
facility the hospital organization  
operates, are as follows.  
For this purpose, a person or  
governmental entity is related to an  
ATEO if it:  
Controls, or is controlled by, the  
ATEO;  
Is controlled by one or more persons  
Note. You may be required to file 2  
Form 4720 returns if you are a related  
organization liable for the tax under  
section 4960(a), which is reported on  
Part I, line 13, and you are a disqualified  
person or organization manager of the  
organization with respect to which you  
are a related organization and you are  
liable for a Chapter 41 or 42 excise tax  
as a disqualified person or organization  
manager, which is reported on Part II.  
See the instructions for Page 1,  
who control the ATEO;  
Is a supported organization (as  
1. To conduct a CHNA this tax year,  
or in either of the 2 prior tax years. The  
CHNA must take into account input from  
persons who represent the broad  
defined in section 509(f)(3)) or  
supporting organization (as defined in  
section 509(a)(3)) with respect to the  
ATEO during the taxable year; or  
interests of the community served by  
the hospital facility, including people  
with special knowledge of or expertise in  
public health. The CHNA must be made  
widely available to the public.  
In the case of an ATEO that is a  
section 501(c)(9) voluntary employees’  
beneficiary association (VEBA),  
establishes, maintains, or makes  
contributions to the ATEO.  
2. To adopt an implementation  
strategy to meet the community health  
needs identified through the CHNA.  
Liability for tax in case of  
Question B, earlier.  
remuneration from more than one  
employer. In any case in which  
remuneration from more than one  
employer is taken into account under  
the rule above, each related employer is  
liable for the tax in an amount which  
bears the same ratio to the total tax as  
the ratio of (1) the amount of  
Form 4720, Schedule N, is used  
to report and pay any section  
See Notice 2011-52, 2011-30 I.R.B.  
60; Final Regulations, T.D. 9708, 79  
Fed. Reg. 78954 (Dec. 31, 2014),  
2012-32 I.R.B. 126; Notice 2014-2,  
2014-3 I.R.B. 407; Notice 2014-3,  
2014-3 I.R.B. 408; as well as any future  
related guidance for details. For  
TIP  
4960 tax owed. Because there  
is no requirement to make estimated tax  
payments for the section 4960 tax, Form  
990-W does not apply to the section  
4960 tax.  
remuneration that employer paid with  
respect to such employee, to (2) the  
amount of remuneration paid by all  
related employers to the employee.  
Each related employer must file their  
own Form 4720, complete Schedule N  
and report their ratable share of tax on  
Part I, line 13.  
Excess parachute payment. For  
purposes of this provision, an excess  
parachute payment equals the excess of  
any parachute payment over the portion  
of the base amount allocated to such  
payment.  
Covered employee. A covered  
employee means any employee of an  
ATEO (including any former employee)  
that is one of the ATEO’s five highest  
compensated employees for the tax  
year or was the ATEO’s (or a  
additional information on the CHNA  
requirements, see Schedule H (Form  
990), Hospitals, Part V, Section B.  
Specific Instructions  
Part I. For each hospital facility, list the  
following information in the relevant  
column: (b) name of facility, (c)  
predecessor’s) covered employee for  
any preceding tax year beginning after  
2016.  
description of the failure to meet section  
501(r)(3), (d) tax year hospital facility  
last conducted a CHNA, and (e) tax  
year hospital facility last adopted an  
implementation strategy.  
Remuneration. Remuneration means  
wages (as defined in section 3401(a)).  
Remuneration also includes amounts  
required to be included in gross income  
under section 457(f). Remuneration  
shall be treated as paid when there is no  
substantial risk of forfeiture (within the  
meaning of section 457(f)(3)(B)) of the  
rights to such remuneration.  
Part II. On line 1 enter the number of  
hospital facilities operated by the  
Parachute payment. A parachute  
payment is any payment in the nature of  
compensation to (or for the benefit of) a  
covered employee if the payment:  
hospital organization that failed to meet  
the CHNA requirements of section  
501(r)(3). Enter $50,000 multiplied by  
Instructions for Form 4720 (2023)  
-19-  
       
Is contingent on such employee’s  
amount of any excess parachute  
payment you paid.  
4968 defines “related organization” to  
include only the following organizations.  
separation from the employment with  
the employer, and  
Organizations that control or are  
For each covered employee reported  
in column (b), enter in column (e) the  
sum of columns (c) and (d).  
Has an aggregate present value of  
controlled by the educational institution.  
the payments in the nature of  
Organizations that are controlled by  
compensation to (or for the benefit of)  
such individual which are contingent on  
such separation that equals or exceeds  
three times the base amount.  
one or more of the same persons who  
control the educational institution.  
A supported organization (as defined  
Schedule O—Excise Tax  
on Net Investment Income  
of Private Colleges and  
Universities (Section 4968)  
in section 509(f)(3)) during the tax year  
with respect to the educational  
institution.  
Base amount. Rules similar to the  
rules of section 280G(b)(3) shall apply  
for purposes of determining the base  
amount.  
Supporting organizations described  
in section 509(a)(3) during the tax year  
with respect to the educational  
institution.  
General Instructions  
Requirement. An applicable  
Property transfers. Rules similar to  
the rules of section 280G(d)(3) and (4)  
shall apply to property transfers.  
When calculating the net investment  
income of a related organization,  
exclude (1) net investment income of  
any related organization to the extent  
that such net investment income is  
taken into account with respect to  
another educational institution; and (2)  
net investment income from assets that  
are not intended, or are not available for  
the use or benefit of the educational  
institution, unless the related  
educational institution that answered  
Yes” to Form 990, Part V, line 16, or that  
is otherwise subject to the section 4968  
tax on net investment income, must  
complete Schedule O.  
Exception from excess parachute  
payments. An excess parachute  
payment does not include any  
payments:  
Organizations subject to the section  
4968 excise tax. A private college or  
university is subject to a 1.4% excise tax  
on net investment income under section  
4968 if all four of the following threshold  
tests are met.  
Described in section 280G(b)(6)  
(relating to exemption for payments  
under qualified plans),  
Made under or to an annuity contract  
described in section 403(b) or a plan  
described in section 457(b),  
organization is controlled by the  
educational institution, or unless the  
related organization is a supporting  
organization with respect to the  
The organization must be an eligible  
To a licensed medical professional  
educational institution (as defined in  
section 25A(f)(2)). Section 25A(f)(2)  
defines “eligible educational institution”  
as an institution that is described in  
section 481 of the Higher Education Act  
of 1965 (20 U.S.C. section 1088), as in  
effect on August 5, 1997; and is eligible  
to participate in a program under Title IV  
of such Act (20 U.S.C. sections 1070 et  
seq.).  
(including a veterinarian) to the extent  
that such payment is for the  
educational institution.  
performance of medical or veterinary  
services by such professional, or  
Net investment income. Net  
To an individual who is not a highly  
investment income is the amount by  
which the sum of the gross investment  
income and the capital gain net income  
exceeds the administrative expenses  
allocable to gross investment income  
and capital gain net income.  
compensated employee as defined in  
section 414(q).  
Specific Instructions  
Enter in column (b) the name of each  
covered employee who was paid more  
than $1 million in renumeration or was  
paid an excess parachute payment  
during the year. If more than five  
covered employees, attach a statement  
with the information required by the  
schedule and show the total amounts  
for column (e) on line 6.  
The organization must have had at  
least 500 tuition-paying students, based  
upon a daily average student count,  
during the preceding tax year.  
To determine net investment income,  
including certain exceptions to gross  
investment income and modifications to  
allowable deductions, see Regulations  
section 53.4968-2.  
Basis. As described in Regulations  
section 53.4968-2(d)(2), in the case of  
property held by an applicable  
More than 50% of those students  
must have been located in the United  
States.  
The aggregate fair market value, at  
the end of the preceding tax year, of the  
assets not used directly in carrying out  
the organization’s exempt purpose, held  
by the organization and related  
organizations, must be at least  
For each covered employee reported  
in column (b), enter in column (c) the  
amount of remuneration you paid that  
exceeded $1 million. Do not include any  
excess parachute payment reported in  
column (d). If remuneration from related  
employer(s) was taken into account in  
determining that remuneration  
educational institution on December 31,  
2017, and continuously thereafter to the  
date of its disposition, the basis for  
determining gain shall be deemed not to  
be less than the fair market value of  
such property on December 31, 2017,  
plus or minus all adjustments after  
December 31, 2017, and before the  
date of disposition consistent with the  
regulations under section 4940(c).  
However, for purposes of determining  
loss, basis rules that are consistent with  
the regulations under section 4940(c)  
will apply.  
$500,000 per student.  
Form 4720, Schedule O, is used  
by applicable educational  
TIP  
institutions to report and pay  
exceeded $1 million, enter your  
any section 4968 tax owed. Because  
there is no requirement to make  
estimated tax payments for the section  
4968 tax, Form 990-W does not apply to  
the section 4968 tax.  
proportional share of the amount of  
remuneration that exceeded $1 million,  
based on your proportional share of  
total remuneration paid to the covered  
employee. Also, attach a statement to  
Form 4720 with the name and EIN of the  
related employer(s).  
Related organizations. The net  
investment income of related  
Modified capital gain net income.  
Column (d) can reflect capital losses  
from sales or other dispositions of  
property in one organization only to the  
organizations is taken into account  
under certain circumstances. Section  
For each covered employee reported  
in column (b), enter in column (d) the  
Instructions for Form 4720 (2023)  
-20-  
   
extent of capital gains from such sales  
or other dispositions in all the other  
organizations (modified capital gain net  
income). See Regulations section  
53.4968–2. Amounts listed in column  
(d), for the filing organization and any  
related organization, may indicate a net  
loss. However, the amount carried to  
line 6, column (d) must be the greater of  
the modified capital gain net income or  
zero. Do not take into account capital  
loss carrybacks. Capital loss carryovers  
are allowed.  
Sign the return in the space provided  
service is available Monday through  
Friday.  
for the preparer's signature,  
Enter the preparer information,  
Enter the preparer tax identification  
Photographs of Missing  
Children  
number (PTIN), and  
Give a copy of the return to the  
The Internal Revenue Service is a proud  
partner with the National Center for  
organization, in addition to the copy to  
be filed with the IRS.  
Any paid preparer whose  
(NCMEC). Photographs of missing  
children selected by the Center may  
appear in instructions on pages that  
would otherwise be blank. You can help  
bring these children home by looking at  
the photographs and calling  
identifying number must be  
!
CAUTION  
listed on Form 990-PF can  
apply for and obtain a PTIN. You can  
apply for a PTIN online or by filing Form  
W-12, IRS Paid Preparer Tax  
Identification Number (PTIN)  
Application and Renewal. For more  
information about applying for a PTIN  
online, visit the IRS website at IRS.gov/  
PTIN.  
Specific Instructions  
1-800-THE-LOST (1-800-843-5678) if  
you recognize a child.  
Line 1. Use Line 1 to report the gross  
investment income , capital gain net  
income (or loss), and associated  
allocable administrative expenses of the  
filing organization.  
How To Get Forms and  
Publications  
Internet. You can access the IRS  
website 24 hours a day, 7 days a week,  
at IRS.gov to:  
Paid Preparer Authorization  
Lines 2–5. Use Lines 2–5 to report the  
gross investment income, capital gain  
net income (or loss), and associated  
allocable administrative expenses from  
related organizations during the related  
organizations’ tax years that end with or  
within the tax year of the organization. If  
a related organization is a partner in a  
partnership or a shareholder of an S  
corporation, include the pertinent items  
of income, gain, loss, or deduction from  
the entity's Schedule K-1 (Form 1065 or  
1120-S) for the tax year of the entity  
ending with or within the tax year of the  
filing organization.  
On the “Sign Here” line, check “Yes,if  
the IRS can contact the paid preparer  
who signed the return to discuss the  
return. This authorization applies only to  
the individual whose signature appears  
in the Paid Preparer Use Only section of  
Form 4720. It doesn't apply to the firm, if  
any, shown in that section.  
Download forms, including talking tax  
forms, instructions, and publications.  
Order IRS products online.  
Research your tax questions online.  
Search publications online by topic or  
keyword.  
Sign up to receive local and national  
By checking the “Yes” box, the  
organization is authorizing the IRS to  
contact the paid preparer to answer any  
questions that arise during the  
processing of the return. The  
organization is also authorizing the paid  
preparer to:  
tax news by email.  
You can order forms and publications  
by downloading from the IRS website at  
IRS e-Services Makes  
Taxes Easier  
Report income from related  
organizations in descending order from  
most income to least income. If there  
are more than three related  
Give the IRS any information missing  
Now more than ever before, businesses  
can enjoy the benefits of filing and  
paying their federal taxes electronically.  
Whether you rely on a tax professional  
or handle your own taxes, the IRS offers  
you convenient programs to make taxes  
easier. Use these electronic options to  
make filing and paying easier.  
from the return;  
Call the IRS for information about  
organizations, attach a schedule to your  
Form 4720 showing the information for  
columns (a) through (e) for each related  
organization and enter the total amounts  
from the schedule in line 5, columns (c)  
through (e).  
processing the return; and  
Respond to certain IRS notices about  
math errors, offsets, and return  
preparation.  
The organization isn't authorizing the  
paid preparer to bind the organization to  
anything or otherwise represent the  
organization before the IRS.  
The authorization will automatically  
end no later than the due date  
You can efile your Form 990 or Form  
Line 6. Total the amounts in columns  
(c), (d), and (e). See Notice 2018-55,  
2018-26 I.R.B. 773.  
990-PF; Form 940 and 941 employment  
tax returns; Forms 1099; and other  
information returns. Visit IRS.gov/E-File  
for details. For tax years beginning on or  
after July 2, 2019, section 3101 of P.L.  
116-25 requires that returns by exempt  
organizations be filed electronically.  
Organizations filing Form 990 or Form  
990-PF for a tax year beginning on or  
after July 2, 2019 must file the return  
electronically. For tax years ending on or  
after July 31, 2021, Form 990-EZ must  
also be filed electronically. Limited  
exceptions apply. See When, Where,  
and How To File, in the Instructions for  
Form 990, Form 990-PF or 990–EZ for  
more information.  
Add 6(c) and 6(d), subtract 6(e), and  
enter the total in 6(f).  
(excluding extensions) for filing of the  
organization's 2024 Form 4720. If the  
organization wants to expand the paid  
preparer's authorization or revoke it  
before it ends, see Pub. 947, Practice  
Before the IRS and Power of Attorney.  
Check “No,if the IRS should contact  
the organization listed on the first page  
of the Form 4720, rather than the paid  
preparer.  
Line 7. Multiply line 6(f) by 0.014  
(1.4%) and enter the amount in box 7f  
and on Part I, line 14.  
Paid Preparer  
Generally, anyone who is paid to  
prepare the return must sign the return  
and fill in the other blanks in the Paid  
Preparer Use Only area. An employee  
of the filing organization isn't a paid  
preparer.  
Phone Help  
If you have questions and/or need help  
completing this form, please call  
You can pay taxes online or by phone  
The paid preparer must:  
using the free Electronic Federal Tax  
877-829-5500. This toll-free telephone  
Form 4720 Instructions  
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Payment System (EFTPS). Visit  
EFTPS.gov or call 1-800-555-4477 for  
details. Electronic Funds Withdrawal  
(EFW) from a checking or savings  
account is also available to those who  
file electronically.  
require you to provide the requested  
information if the tax applies to you.  
Section 6109 requires you to provide  
subject to the Paperwork Reduction Act  
unless the form displays a valid OMB  
control number. Books or records  
your identifying number. Routine uses of relating to a form or its instructions must  
this information include disclosing it to  
the Department of Justice for civil and  
criminal litigation and to other federal  
agencies, as provided by law. We may  
disclose the information to cities, states,  
the District of Columbia, and U.S.  
Commonwealths and territories to  
administer their laws. We may also  
disclose this information to other  
countries under a tax treaty, to federal  
and state agencies to enforce federal  
nontax criminal laws, or to federal law  
enforcement and intelligence agencies  
to combat terrorism. If you don't file this  
information, you may be subject to  
interest, penalties, and/or criminal  
prosecution.  
be retained as long as their contents  
may become material in the  
administration of any Internal Revenue  
law. Generally, tax returns and return  
information are confidential, as required  
by section 6103. However, certain  
returns and return information of tax  
exempt organizations and trusts are  
subject to public disclosure and  
Privacy Act and Paperwork Reduc-  
tion Act Notice. We ask for the  
information on this form to carry out the  
Internal Revenue laws of the United  
States. You are required to give us the  
information. We need it to ensure that  
you are complying with these laws and  
to allow us to figure and collect the right  
amount of tax. Certain individuals who  
owe tax under Chapter 41 or 42 of the  
Internal Revenue Code, and who don't  
sign the Form 4720 of the foundation or  
organization, must file a separate Form  
4720 showing the tax owed and the  
name of the foundation or organization  
for which they owe tax. Sections 6001  
and 6011 of the Internal Revenue Code  
inspection, as provided by section 6104.  
The time needed to complete and file  
this form will vary depending on  
individual circumstances. The estimated  
burden for tax exempt organizations  
filing this form is approved under OMB  
control number 1545-0047 and is  
included in the estimates shown in the  
instructions for their information return.  
You aren’t required to provide the  
information requested on a form that is  
Instructions for Form 4720 (2023)  
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Index  
A
Initial taxes on  
investments that  
jeopardize charitable  
purpose:  
Schedule E; Initial Taxes  
on Taxable  
Schedule O; Excess Tax  
on Net Investment  
Income of Private  
Colleges and  
Expenditures 13  
Amended return 6  
Attorney 21  
Schedule F; Initial Taxes  
on Political  
Universities (Section  
4968) 20  
section 4944 12  
Expenditures 13  
Initial taxes on political  
D
Signature and  
expenditures:  
Schedule G; Tax on  
Excess Lobbying  
Expenditures 14  
Verification 4  
Disqualified person 15  
section 4955 13  
Summary of Taxes 8  
Donor advised funds 17,  
Initial taxes on taxable  
Schedule H; Taxes on  
Disqualifying Lobbying  
Expenditures 14  
expenditures:  
T
section 4945 13  
E
Tax on excess lobbying  
Schedule I; Initial Taxes on  
Excess Benefit  
expenditures:  
P
Excess business holdings:  
Exceptions to tax 10  
Schedule C 9  
section 4911 14  
Paid Preparer 21  
Transactions 15  
Tax Payments 5  
Paid Preparer  
Schedule J; Taxes on  
Being a Party to  
Taxes on being a party to  
Prohibited Tax Shelter  
Transactions:  
Extension 4  
Authorization 21  
Preparer Tax identification  
Prohibited Tax Shelter  
Transactions (Section  
4965) 16  
F
Number (PTIN) 21  
listed transaction 17  
section 4965 16  
Publications:  
Filing requirements:  
When to file 4  
Schedule K; Taxes on  
Taxable Distributions of  
Sponsoring  
Pub. 947, Practice Before  
the IRS and Power of  
Attorney 21  
Taxes on disqualifying  
Where and How to file 3  
Who must file 2  
lobbying expenditures:  
Organizations  
section 4912 14  
Foreign Organizations or  
Maintaining Donor  
Advised Funds 17  
Taxes on Managers,  
S
U.S. Territory 4  
Self-Dealers, etc. 7  
Schedule:  
Schedule L; Taxes on  
Prohibited Benefits  
Distributed From Donor  
Advised Funds 18  
Taxes on Prohibited  
Benefits Distributed  
From Donor Advised  
Funds:  
Schedule A; Initial Taxes  
on Self-Dealing 8  
I
Initial Taxes on Excess  
Schedule B; Initial Tax on  
Undistributed Income 9  
Benefit Transactions:  
Schedule M; Tax on  
Failure to Meet the  
Community Health  
Needs Assessment  
Requirements (Section  
501(r)(3)) 19  
section 4967 18  
disqualified person 15  
donor advised funds 16  
Schedule C; Initial Tax on  
Excess Business  
Holdings 9  
Taxes on Taxable  
Distributions of  
Sponsoring  
excess benefit  
transaction 15  
Schedule D; Initial Taxes  
on Investments That  
Jeopardize Charitable  
Purpose 12  
Organizations  
Maintaining Donor  
Advised Funds:  
section 4958 15  
sponsoring  
Schedule N; Tax on  
Excess Executive  
Compensation (Section  
4960) 19  
organizations 16  
section 4966 17  
supporting  
organizations 16  
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