Form 4720

Form 4720

A form that a tax-exempt charitable organization files with the IRS to calculate and pay taxes on certain activities and investments that fall outside the organization's charitable purpose and that may result in loss of 501(c)3 status. For example, it is used to pay taxes on excess or unauthorized lobbying activities.
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Income Tax Return for Estates and Trusts; 3 1/2 months on Form 5500, Annual Return/Report of Employee Benefit Plan; and six months on Form 990, Return of Organization Exempt From Income Tax; Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code; Form 5227, Split-Interest Trust Information Return; Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction; Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts; and Form 3520-A, Annual Information Return of a Foreign Trust With a U.
Six months for tax-exempt organizations filing Form 4720 (for excise taxes).
A private foundation filing Form 990-PF, Return of Private Foundation, should consider reporting diversions in Part WI-B, "Statements Regarding Activities for Which Form 4720 May Be Required.
Additionally, private foundations and foundation managers are required to file Form 4720 to report excise taxes on certain prohibited activities.
Part I-B, for organizations exempt under IRC Section 501(c)(3), asks if you have incurred any excise taxes under IRC Section 4955, and whether you have filed Form 4720 to pay the tax.
The proposed regulations provide that the excise tax is reported and payable on Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.
Failure to file the Form 4720 and remit the tax triggers further penalties, up to 25 percent of the tax due, long before an audit is scheduled.
The individual reporting the excess benefit transaction also can file Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the Internal Revenue Code, and self-assess the excise tax.
Gardner as "excess compensation" on an amended IRS Form 990-PF and a related IRS Form 4720.
Charitable remainder trusts that incurred any unrelated business taxable income were also required to file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.
4965 excise tax: Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code (in the case of nonplan entities), and Form 5330, Return of Excise Taxes Related to Employee Benefit Plans (in the case of plan entities).
Individuals involved in such transactions must report them on Form 4720 with their personal tax returns.