What is Form 990-T?
The Form 990-T, Exempt Organization Business Income Tax Return (and Proxy Tax Under Section 6033(e)), is an information return filed by exempt organizations along with their 990 return to report unrelated business income and tax liabilities.
Form990-T Schedule A
If your organization engages in more than one unrelated trade or business, there are some additional filing requirements. You will need to complete and attach a separate Schedule A to report income and allowable deduction for each separate unrelated trade or business..
Who must file IRS form 990-T?
Exempt organizations that file Form 990, 990-EZ, or 990-PF and have a gross income of $1,000 or more from unrelated businesses for the tax year must file Form 990-T.
When is Form 990-T due?
|Type of Organization||Calendar Tax Year||Fiscal Tax Year|
|Employees' trusts, defined in section 401(a), IRAs (including SEPs and SIMPLEs), Roth IRAs, Coverdell ESAs, or 408(a) (Archer MSAs)||April 15||15th day of the 4th month after the end of the tax year.|
|Other Organizations||May 15||15th day of the 5th month after the end of the tax year.|
Note: The Taxpayer First Act of 2019 (Pub. L. 116-25) mandated electronic filing for Form 990-T. Starting in February 2021, Form 990-T must be e-filed.
Information required to file 990-T
The following information is needed to file Form 990-T:
- The organization's name, EIN, address, and phone number
- Relevant details about any address changes, name changes, or filing an amended return
- Group exemption number
- Organization's tax-exempt status
- If you are only filing Form 990-T to claim a credit from Form 8941 and/or to claim a refund shown on Form 2439, provide relevant details.
- Form of Organization
- The fair market value of all assets at the end of the year
- Schedule A details attached with Form 990-T.
To know more about Form 990-T filing instructions, visit https://www.expresstaxexempt.com/form-990-t/form-990-t-instructions/.
Form 990-T Mandated Electronic filing Requirements
The Taxpayer First Act of 2019 (Pub. L. 116-25) has mandated electronic filing for Form 990-T. Under this act, certain exempt organizations must file information and tax returns electronically for tax years beginning after July 1, 2019, i.e., organizations with tax years beginning after July 2019 must file their 990 returns electronically.
Effective in 2021, all organizations with a due date on or after April 15, 2021, must file Form 990-T for 2021 electronically. Paper filing is no longer an option. However, there is a limited exception for 2020 Form 990-T returns submitted on paper and postmarked on or before March 15, 2021.
E-file Form 990-T for your Tax-Exempt Organizations with our Software
As the IRS has mandated electronic filing for IRS Form 990-T, using an e-filing service will ensure your return is processed securely and quickly.
Form990t.org is an IRS authorized e-file provider and a preferred option for thousands of exempt organizations. Our filing service allows organizations to e-file Form 990-T securely and accurately! Our system’s internal audit check feature will locate basic errors in your Form. You can fix these errors before e-filing your Form with the IRS.
You can invite your organization’s board members to review and approve returns. Tax Professionals can get discounted pricing to e-file with the software.
You can re-transmit rejected returns for free. If you need to correct errors on the accepted form, you can amend through our Software.
Print a copy of your 990-T form instantly after transmitting and have access to our US-based support team for any questions about e-filing status.
How to File Form 990-T Electronically with our Software
To file 990-T electronically, you can get started with an IRS authorized e-file provider like form990t.org. When you e-file Form 990-T with us, you will get your submitted forms’ status instantly.
To e-file Form 990-T, get started with ExpressTaxExempt and follow these simple steps:
- Step 1: Enter your EIN and search for your organization’s details.
- Step 2: Select the tax year you’re filing Form 990-T for and complete your form using our direct form-based entry.
- Step 3: Once you enter all the required information, we will check your return for mistakes. If we find any errors, you’ll be able to correct them quickly.
- Step 4: Review your form and make any necessary corrections.
- Step 5: Finally, transmit your return to the IRS.
How to file an extension for Form 990-T?
Suppose your organization needs additional time to file Form 990-T. If that is the case, you can request an automatic six-month extension using Form 8868, Application for Automatic Extension of Time to File an Exempt Organization Return.
Note: Even if your organization requests an extension with Form 8868, you will still need to pay any taxes due in full by the return’s original due date.
To file Form 8868, visit https://www.expresstaxexempt.com/e-file-form-8868/.
What are the Penalties for Form 990-T?
If an exempt organization e-file 990-T after the due date (including any extensions) and doesn't provide a reasonable explanation for filing late, the IRS will impose a penalty.
Late Filing Penalties for Form 990-T
Penalties for Late Tax Payments
The penalty for paying taxes late is usually half of 1% of the unpaid tax for each month or part of a month that the tax is unpaid. The maximum penalty is 25% of the unpaid tax amount.