Form 990-PF is an annual information return that must be filed by:

The parts of the form listed below do not apply to all filers. See How to avoid filing an incomplete return on this page for information on what to do if a part or an item does apply.

The following publications may be helpful in preparing Form 990-PF:

Some states and local government units will accept a copy of Form 990-PF and required attachments instead of all or part of their own financial report forms.

If the organization plans to use Form 990-PF to satisfy state or local filing requirements, such as those from state charitable solicitation acts, note the following:

The foundation managers must furnish a copy of the annual return Form 990-PF (and Form 4720 (if applicable)) to the attorney general of:

A copy of the annual return must be sent to the attorney general at the same time the annual return is filed with the IRS.

In general, to change its accounting period the organization must file Form 990-PF by the due date for the short period resulting from the change. At the top of this short period return, write “Change of Accounting Period.”

If the organization changed its accounting period within the 10-calendar-year period that includes the beginning of the short period, and it had a Form 990-PF filing requirement at any time during that 10-year period, it must also attach a Form 1128 to the short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740.

Generally, you should report the financial information requested on the basis of the accounting method the foundation regularly uses to keep its books and records.

This return must be filed by the 15th day of the 5th month following the close of the foundation's accounting period. If the regular due date falls on a Saturday, Sunday, or legal holiday, file by the next business day. If the return is filed late, see General Instruction M.

In case of a complete liquidation, dissolution, or termination, file the return by the 15th day of the 5th month following complete liquidation, dissolution, or termination.

To file the return, mail or deliver it to:

A foundation uses Form 8868 to request an automatic or additional extension of time to file its return.

An automatic 3-month extension will be granted if you properly complete this form, file it, and pay any balance due by the due date for Form 990-PF.

If more time is needed, Form 8868 is also used to request an additional extension of up to 3 months. However, these extensions are not automatically granted. To obtain this additional extension of time to file, you must show reasonable cause for the additional time requested.

To change the organization's return for any year, file an amended return, including attachments, with the correct information. The amended return must provide all the information required by the form and instructions, not just the new or corrected information. Check the “Amended Return” box in G at the top of the return. See the instructions for line 9 of Part VI on page 18.

If the organization files an amended return to claim a refund of tax paid under section 4940 or 4948, it must file the amended return within 3 years after the date the original return was due or filed, or within 2 years from the date the tax was paid, whichever date is later.

To avoid filing an incomplete return or having to respond to requests for missing information, see General Instruction B.

There is a penalty for not paying tax when due (section 6651). The penalty generally is ½ of 1% of the unpaid tax for each month or part of a month the tax remains unpaid, not to exceed 25% of the unpaid tax. If there was reasonable cause for not paying the tax on time, the penalty can be waived. However, interest is charged on any tax not paid on time, at the rate provided by section 6621.

A domestic exempt private foundation, a domestic taxable private foundation, or a nonexempt charitable trust treated as a private foundation must make estimated tax payments for the excise tax based on investment income if it can expect its estimated tax (section 4940 tax minus allowable credits) to be $500 or more. The number of installment payments it must make under the depository method is determined at the time during the year that it first meets this requirement. For calendar-year taxpayers, the first deposit of estimated taxes for a year generally should be made by May 15 of the year.

Although Form 990-W is used primarily to compute the installment payments of unrelated business income tax, it is also used to determine the timing and amounts of installment payments of the section 4940 tax based on investment income. Compute separately any required deposits of excise tax based on investment income and unrelated business income tax.

To figure the estimated tax for the excise tax based on investment income, apply the rules of Part VI to your tax year 2004 estimated amounts for that part. Enter the tax you figured on line 10a of Form 990-W.

The Form 990-W line items and instructions for large organizations also apply to private foundations. For purposes of paying the estimated tax on net investment income, a “large organization” is one that had net investment income of $1 million or more for any of the 3 tax years immediately preceding the tax year involved.

Whether the foundation uses the depository method of tax payment or the special option for small foundations, it must pay the tax due (see Part VI) in full by the 15th day of the 5th month after the end of its tax year.

Special Payment Option for Small Foundations

A private foundation may enclose a check or money order, payable to the United States Treasury, with the Form 990-PF or Form 8868, if it meets all of the following requirements.

1. The foundation must not be required to use EFTPS.
2. The tax based on investment income shown on line 5, Part VI of Form 990-PF is less than $500.
3. If Form 8868 is used, the amount entered on line 3a of Part I or line 8a of Part II of Form 8868 must be less than $500 and it must be the full balance due.

Be sure to write “2003 Form 990-PF” and the foundation's name, address, and EIN on its check or money order.

Foreign organizations should see the instructions for Part VI, line 9.
 

A private foundation must make its annual returns and exemption application available for public inspection.

A section 501(c) organization that offers to sell or solicits money for specific information or a routine service to any individual that could be obtained by the individual from a Federal Government agency free or for a nominal charge must disclose that fact conspicuously when making such offer or solicitation.

Any organization that intentionally disregards this requirement will be subject to a penalty for each day the offers or solicitations are made. The penalty is the greater of $1,000 or 50% of the total cost of the offers and solicitations made on that day.

If you apply any provision of any U.S. tax treaty to compute the foundation's taxable income, tax liability, or tax credits in a manner different from the 990-PF instructions, attach an explanation.

Regulations section 53.4948-1(b) states that sections 507, 508, and Chapter 42 (other than section 4948) do not apply to a foreign private foundation that from the date of its creation has received at least 85% of its support (as defined in section 509(d), other than section 509(d)(4)) from sources outside the United States.

Section 4948(a) imposes a 4% tax on the gross investment income from U.S. sources (i.e., income from dividends, interest, rents, payments received on securities loans (as defined in section 512(a)(5)), and royalties not reported on Form 990-T) of an exempt foreign private foundation. This tax replaces the section 4940 tax on the net investment income of a domestic private foundation. To pay any tax due, see the instructions for Part VI, line 9.

Taxable foreign private foundations and foreign section 4947(a)(1) nonexempt charitable trusts are not subject to the excise taxes under sections 4948(a) and 4940, but are subject to income tax under subtitle A of the Code.

Certain foreign foundations are not required to send copies of annual returns to state officials, or comply with the public inspection and notice requirements of annual returns. (See General Instructions G and Q.)

If there is a liquidation, dissolution, termination, or substantial contraction (defined below) of the organization, attach:

Although an organization terminating its private foundation status under section 507(b)(1)(B) may be regarded as a public charity for certain purposes, it is considered a private foundation for filing requirement purposes and it must file an annual return on Form 990-PF. The return must be filed for each year in the 60-month termination period, if that period has not expired before the due date of the return.

Regulations under section 507(b)(1) (B)(iii) specify that within 90 days after the end of the termination period the organization must supply information to the IRS establishing that it has terminated its private foundation status and, therefore, qualifies as a public charity. Send the information to:

If information is furnished establishing a successful termination, then, for the final year of the termination period, the organization should comply with the filing requirements for the type of public charity it has become. See the Instructions for Form 990 and Schedule A (Form 990 or 990-EZ) for details on filing requirements. This applies even if the IRS has not confirmed that the organization has terminated its private foundation status by the time the return for the final year of the termination is due (or would be due if a return were required).

The organization will be allowed a reasonable period of time to file any private foundation returns required (for the last year of the termination period) but not previously filed if it is later determined that the organization did not terminate its private foundation status. Interest on any tax due will be charged from the original due date of the Form 990-PF, but penalties under sections 6651 and 6652 will not be assessed if the Form 990-PF is filed within the period allowed by the IRS.

If the organization is terminating its private foundation status under the 60-month provisions of section 507(b)(1)(B), special rules apply. (See General Instructions T and U.) Under these rules, the organization may file Form 990-PF without paying the tax based on investment income if it filed a consent under section 6501(c)(4) with its notification to the TE/GE Customer Account Services at the Cincinnati address given in General Instruction U of its intention to begin a section 507(b)(1)(B) termination. The consent provides that the period of limitation on the assessment of excise tax under section 4940 or 4948 based on investment income for any tax year in the 60-month period will not expire until at least 1 year after the period for assessing a deficiency for the last tax year in which the 60-month period would normally expire. Any foundation not paying the tax when it files Form 990-PF must attach a copy of the signed consent.

If the foundation did not file the consent, the tax must be paid in the normal manner as explained in General Instructions O and P. The organization may file a claim for refund after completing termination or during the termination period. The claim for refund must be filed on time and the organization must supply information establishing that it qualified as a public charity for the period for which it paid the tax.