Form 990-T : The Purpose and Requirements

The IRS Mandates
Electronic filing of
Form 990-T

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• Form 990-T - An Overview

IRS Form 990-T, Exempt Organization Business Income Tax Return - An Overview

Form 990-T is a supporting form that a Tax-Exempt organization may be required to file with their Form 990 if it applies to their organization.

Keep reading for an overview of Form 990-T, its deadline, and other key information.

Table of Content

1. What is IRS Form 990-T?

Form 990-T (Exempt Organization Business Income Tax Return and Proxy Tax Under Section 6033(e)) is an information return used by tax-exempt organizations to report unrelated business income and tax liabilities with the IRS.

Form 990-T is also used for the following purposes:

• To claim a refund on an income tax paid by a Regulated Investment Company (RIC) or a Real Estate Investment Trust (REIT) on an undistributed long-term capital gain.
• To report proxy tax liability.
• To request credits for certain federal excise taxes paid or for small employer health insurance premiums paid.
• To report unrelated business income tax on reinsurance entities.

Are you Filing Form 990-T for the first time?

ExpressTaxExempt, an IRS-authorized e-file provider, is here for you! We support all the 990 forms, including the supporting Form 990-T.

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2. Who must file 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 business income for the tax year must e-file Form 990-T.

Not Sure How to Complete Form 990-T?

Our guide includes step-by-step instructions to help you understand what is required on Form 990-T.

3. When is the deadline to file Form 990-T?

Based on the type of organization, the deadline for filing Form 990-T may vary.

• Employees' trusts, defined in section 401(a), IRAs (including SEPs and SIMPLEs), Roth IRAs, Coverdell ESAs, or 408(a) (Archer MSAs) must file Form 990-T by the 15th day of the 4th month after the end of their tax year.
• Other organizations must file Form 990-T by the 15th day of the 5th month after the end of their tax year.

Note: If the due date falls on a weekend or federal holiday, file the form on the next business day.

Does your Organization Operate on a Fiscal Tax Year?

If you are unsure about your organization’s 990-T deadline, click here for help determining the Form 990-T due date.

4. What information is needed to file Form 990-T?

The following information is required to file Form 990-T electronically:

• 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
• Type of 990 Form that the organization files
• The fair market value of all assets at the end of the year
• Schedule A details attached with Form 990-T

Need additional instructions for filing Form 990-T?

Click here for step-by-step instructions for completing each part of Form 990-T.

5. Additional Information Required to File IRS form 990-T

Depending on the information reported on Form 990-T, organizations may be required to provide additional information by attaching Schedule A.

Why should an organization attach Schedule A to its 990-T?

If an organization engages in more than one type of unrelated business activity, they need to complete and attach a separate Form 990-T Schedule A to report the income and allowable deductions for each business activity.

Depending on the information provided on filing Form 990-T and Schedule A, organizations may be required to attach additional supporting forms.

Click here for more information about Schedule A.

6. What are the late filing penalties for Form 990-T?

• An organization that fails to file its return on or before the due date (including an extension of time for filing) will become subject to a penalty of 5% of the unpaid tax for each month, or part of a month, that the return is late.
• The maximum penalty is 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the taxes due, or $435.
• The penalty for paying taxes late is usually 1/2 of 1% of the unpaid taxes for each month or part of a month the tax is unpaid. This penalty can’t exceed 25% of the unpaid tax.
• The IRS won’t impose a penalty if the filing organization provides a reasonable explanation for filing late.

7. How to file an extension for Form 990-T?

If your organization needs additional time to file Form 990-T, you can request an automatic extension of time using Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return.

Note: Even if your organization requests an extension with IRS Form 8868, you will still need to pay any taxes due in full by the return’s original due date.

Did you know?

In addition to 990-T, ExpressTaxExempt also supports the e-filing of Form 8868. You can easily apply for an automatic extension of time to file your Form 990-T.

8. How should I file Form 990-T?

The IRS mandated electronic filing of Form 990-T under the Taxpayer First Act of 2019 (Pub. L. 116-25).

The best way to complete the filing of Form 990-T easily and securely is by getting started with an IRS-authorized e-file provider.

Trust ExpressTaxExempt to E-File Your Form 990-T Securely and Accurately!

ExpressTaxExempt is the market-leading, IRS-authorized e-file provider chosen by thousands of Exempt organizations!

ExpressTaxExempt offers the following streamlined features:

• Complete 990-T using a Form-based preparation
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• Re-transmit rejected returns for free
• Dedicated customer support via phone, email, and live chat

Article Sources

• Tax-Exempt Status for YourOrganization https://www.irs.gov/pub/irs-pdf/p557.pdf
• About Form 990-T, Exempt Organization Business Income Tax Return https://www.irs.gov/forms-pubs/about-form-990-t
• Instructions for Form 990-T https://www.irs.gov/pub/irs-pdf/i990t.pdf