Instructions for Form 990-BL |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
Period Covered by the Return.
Enter the calendar year or fiscal year that corresponds to the accounting period being reported.
Name and Address.
Enter the name and address of the trust.
If the return and a Schedule A (Form 990-BL) are filed by a trustee or disqualified person liable for tax under section
4951 or 4952, then enter
that person's name and address below the name of the trust.
Include the suite, room, or other unit number after the street address. If the Post Office does not deliver mail to
the street address and the
filer has a P.O. box, show the box number instead of the street address.
“Return filed by”.
Check only the box that applies to you.
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Check the “Trust” box when the return is filed by a black lung benefit trust as an information return, or tax return, or
both.
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Check the “Trustee” box when the return is filed by a trustee because of liability for taxes under section 4951 or 4952, or
both.
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Check the “Disqualified person” box when the return is filed by a disqualified person who is liable for section 4951 tax
only.
Taxpayer Identification Number.
Enter the EIN of the black lung benefit trust. If the return is being filed by a trustee or disqualified person, also
enter that person's SSN or
EIN.
Each trust should have only one employer identification number. If the trust has more than one number and has not
been advised which one to use,
you should notify the Internal Revenue Service Center, Ogden, Utah 84201-0027. Inform them what numbers the trust has; the
name and address to which
each number was assigned; and the address of its principal office. The IRS will then advise you which number to use.
Application Pending, Address Change, and FMV of Assets.
Fill in these blocks only when a return must be filed for a trust. Enter the fair market value (FMV) of the trust's
assets at the beginning of the
operator's tax year within which the trust's tax year begins.
Signature.
The return must be signed by the authorized trustee or trustees and also by any person, firm, or corporation who prepared
the return. If the return
is prepared by a firm or corporation, it should be signed in the name of the firm or corporation. The signature of the preparer
is not required if the
return is prepared by a regular full-time employee of the filer.
Part I—Analysis of Revenue and Expenses
Line 1.
Enter the total contributions received under section 192 from the coal mine operator who established the trust.
Contributions to the trust must be in cash or property of the type in which the trust is permitted to invest (i.e.,
public debt securities of the
United States, obligations of a state or local government that are not in default as to principal or interest, or time and
demand deposits in a bank
or insured credit union as described in section 501(c)(21)(D)(ii)).
Line 2.
Enter the amounts received during the year from the sources listed in 2a, b, c, and d.
Line 4.
Enter the amounts contributed by the trust to the Federal Black Lung Disability Trust Fund as provided for by section
3(b)(3) of Public Law 95-227.
Line 5.
Enter the amounts paid for insurance exclusively covering liabilities under sections 501(c)(21)(A)(i)(I), 501(c)(21)(A)(i)(IV).
For details see
Regulations section 1.501(c)(21)-1(d).
Line 6.
Enter the amounts paid to or for the benefit of miners or their beneficiaries other than amounts included in lines
4 or 5. Such payments could
include direct payment of medical bills, etc., authorized by the Act and accident and health benefits for retired miners and
their spouses and
dependents.
Line 7.
Enter the total amount of compensation for the year of all trustees. See Part III, line 26.
Line 8.
Enter the total of the salaries and wages of all employees other than those included in line 7.
Line 9.
Enter the administrative expenses (including legal, accounting, actuarial, and trustee expenses) for the year other
than salaries and wages paid to
trustees and other employees.
Line 10.
Attach a schedule, listing by type and amount, all allowable deductions that are not deductible elsewhere on Form
990-BL. Enter the total of these
deductions on line 10. See Regulations section 1.501(c)(21)-1 for additional information.
Complete the balance sheets on the basis of the accounting method regularly used by the trust in keeping its books and records.
Line 19.
Enter only liabilities of the trust as of the first and last days of the tax year of the trust. Include payments for
approved black lung claims
that are due but not paid, accrued trustee fees, etc. Do not include amounts for black lung claims being contested, the present
value of payments for
approved claims, or the estimated liability for future claims.
Line 21.
Enter the total of lines 19 and 20. That figure must equal the figure for total assets reported on line 18 for both
the beginning and end of year.
The Black Lung Benefits Revenue Act of 1977 imposes excise taxes and penalties on acts of self-dealing between trusts and
disqualified persons, and
on taxable expenditures made by the trusts. These taxes and penalties apply to the trust (section 4952), trustees (sections
4951 and 4952), and
self-dealers (section 4951). The purpose of the questions is to determine whether there is any initial tax due under either
of these two sections.
Self-dealing (Section 4951)
Self-dealing.
For purposes of section 4951, the term “ self-dealing” means any direct or indirect:
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Sale, exchange, or leasing of real or personal property between a trust described in section 501(c)(21) and a disqualified
person;
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Lending of money or other extension of credit between such a trust and a disqualified person;
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Furnishing of goods, services, or facilities between such a trust and a disqualified person;
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Payment of compensation (or payment or reimbursement of expenses) by such a trust to a disqualified person; and
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Transfers to, or use by or for the benefit of, a disqualified person of the income or assets of such a trust.
Special Rules.
For purposes of
section 4951:
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The transfer of personal property by a disqualified person to such a trust is treated as a sale or exchange if the property
is subject to a
mortgage or similar lien;
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If a bank or an insured credit union is a trustee of the trust or otherwise is a “disqualified person” with respect to the trust, any
amount invested in checking accounts, savings accounts, certificates of deposit, or other time or demand deposits in that
bank or credit union
constitutes a lending of money;
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The furnishing of goods, services, or facilities by a disqualified person to such a trust is not an act of self-dealing if
the furnishing is
without charge and if the goods, services, or facilities so furnished are used exclusively for the purposes specified in section
501(c)(21)(A);
and
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The payment of compensation (and the payment or reimbursement of expenses) by such a trust to a disqualified person for personal
services
that are reasonable and necessary to carry out the exempt purpose of the trust is not an act of self-dealing if the compensation
(or payment or
reimbursement) is not excessive. See Regulations section 53.4951-1 for additional information.
Taxable Period.
The term “ taxable period” means, with respect to any act of self-dealing, the period beginning with the date on which the act of self-dealing
occurs and ending on the earliest of:
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The date of mailing of a notice of deficiency under section 6212, with respect to the tax imposed by section 4951(a)(1),
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The date on which the tax imposed by section 4951(a)(1) is assessed, or
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The date on which correction of the act of self-dealing is completed.
Amount Involved.
The term “ amount involved” means, for any act of self-dealing, the greater of the amount of money and the fair market value (FMV) of the other
property given or the amount of money and the FMV of the other property received. However, in the case of services described
in section 4951(d)(2)(C),
the amount involved is only the excess compensation. For purposes of the preceding sentence, the FMV:
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For the initial taxes imposed by section 4951(a), is determined as of the date on which the act of self-dealing occurs; and
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For additional taxes imposed by section 4951(b), is the highest FMV during the taxable period.
Correction.
The terms “ correction” and “ correct” mean, for any act of self-dealing, undoing the transaction to the extent possible, but in any case
placing the trust in a financial position not worse than that in which it would be if the disqualified person were dealing
under the highest fiduciary
standards.
Disqualified Person.
The term “ disqualified person” means, for a trust described in section 501(c)(21), a person who is:
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A contributor to the trust,
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A trustee of the trust,
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An owner of more than 10% of:
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The total combined voting power of a corporation,
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The profits interest of a partnership, or
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The beneficial interest of a trust or unincorporated enterprise, which is a contributor to the trust,
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An officer, director, or employee of a person who is a contributor to the trust,
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The spouse, ancestor, lineal descendant, or spouse of a lineal descendant of an individual described in 1, 2, 3, or 4,
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A corporation of which persons described in 1, 2, 3, 4, or 5 own more than 35% of the total combined voting power,
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A partnership in which persons described in 1, 2, 3, 4, or 5 own more than 35% of the profits interest, or
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A trust or estate in which persons described in 1, 2, 3, 4, or 5 hold more than 35% of the beneficial interest.
For purposes of 3a and 6, indirect stockholdings are taken into account if they would be taken into account under
section 267(c), except that, for
purposes of this paragraph, section 267(c)(4) is treated as providing that the members of the family of an individual are
only those individuals
described in 5. For purposes of 3b and c, 7, and 8, the ownership of profits or beneficial interests is determined by the
rules for constructive
ownership of stock provided in section 267(c) (other than paragraph (3)), except that section 267(c)(4) is treated as providing
that the members of
the family of an individual are only those individuals described in 5.
Payment of Benefits.
For purposes of section 4951, a payment out of assets or income of a trust described in section 501(c)(21) for the
purposes described in sections
501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV) is not considered an act of self-dealing.
Taxable Expenditures (Section 4952)
Taxable expenditure.
For purposes of section 4952, the term “ taxable expenditure” means any amount paid or incurred by a trust described in section 501(c)(21)
other than for a purpose specified in that section.
Correction.
The terms “ correction” and “ correct” mean, with respect to any taxable expenditure, placing the trust in a financial position not worse
than that in which it would have been if the taxable expenditure had not been made:
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By recovering all or part of the expenditure to the extent recovery is possible; and
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When full recovery is not possible, by contributions by the person or persons whose liabilities for black lung benefit claims
(as defined in
section 192(e)) are to be paid out of the trust.
Taxable Period.
The term “ taxable period” means, with respect to any taxable expenditure, the period beginning with the date on which the taxable expenditure
occurs and ending on the earlier of:
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The date of mailing a notice of deficiency under section 6212 with respect to the tax imposed by section 4952(a)(1), or
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The date on which the tax imposed by section 4952(a)(1) is assessed.
Line 22.
A “ conformed” copy is one that agrees with the original document, and all amendments to it. If the copies are not signed, they must be
accompanied by a written declaration signed by an officer authorized to sign for the organization certifying that they are
complete and accurate
copies of the original documents.
Chemically or photographically reproduced copies of articles of incorporation showing the certification of an appropriate
State official need not
be accompanied by such a declaration. See Rev. Proc. 68-14, 1968-1 C.B. 768, for additional information.
Line 23.
If you answered “ Yes” to 23a(1), (2), (3), (4), or (5) and “ No” to 23b, notify each self-dealer and trustee who may be liable for initial
taxes under section 4951 of the requirement to file a return for each year (or part of a year) and pay the applicable tax.
The trust must also furnish
the information required by Schedule A (Form 990-BL), Part I, Section A (other than columns (g) and (h)) on its own return.
For exceptions to the self-dealing rules, see Special Rules and Payment of Benefits on this page.
Line 24.
If you answered “ Yes,” complete Part I, Section B (other than column (h)) and Part II of Schedule A (Form 990-BL). The trust must also notify
any trustees who may be liable for initial taxes under section 4952 of the requirement to file Form 990-BL, Schedule A (Form
990-BL), and to pay the
tax.
Line 25.
If you answered “ No,” or if there were multiple acts or transactions giving rise to Chapter 42 taxes and all of them were not corrected,
attach an explanation of each uncorrected act including the names of all parties to the act, the date of the act, the amount
involved, why the act has
not been corrected, and the date you expect correction to be made.
Line 26.
List each of the organization's officers, directors, trustees, and other persons having responsibilities or powers
similar to those of officers,
directors, or trustees. List all of these persons even if they did not receive any compensation from the organization. Show
all forms of compensation
received by each listed officer, etc. Enter “ -0-” in columns (c), (d), and (e) if none was paid.
Note.
If you pay any other person, such as a management service company, for the services provided by any of your officers,
directors, trustees, or key
employees, report the compensation and other items on line 26 as if you had paid the officer, etc. directly.
Column (b).
In column (b), a numerical estimate of average hours per week devoted to the position is required for a complete answer.
Phrases such as “ as
needed” or “ as required” are unacceptable.
Column (c).
Include all forms of deferred compensation (whether or not funded and whether or not the deferred compensation plan
is a qualified plan under
section 401(a)) and payments to welfare benefit plans on behalf of the officers, etc.
Column (d).
Enter expense allowances or reimbursements that the recipients must report as income on their separate income tax
returns. Examples include amounts
for which the recipient did not account to the organization or allowances that were more than the payee spent on serving the
organization. Include
payments made under indemnification arrangements, the value of the personal use of housing, automobiles, or other assets owned
or leased by the
organization (or provided for the organization's use without charge), as well as any other taxable and nontaxable fringe benefits.
Get Pub. 525,
Taxable and Nontaxable Income, for details.
Column (e).
Enter salary, fees, bonuses, and severance payments received by each person listed.
Black lung benefit trusts that pay salaries, wages, or other compensation to officers or other employees are generally
liable for filing Forms 941
and 940 to report social security, withholding, and Federal unemployment taxes.
Part IV—Statement With Respect to Contributors, etc.
Note.
This part is not open for public inspection.
Line 1.
List the names and addresses of all persons whose contributions during the tax year totaled $5,000 or more.
In determining whether a person has contributed $5,000 or more, include only contributions of $1,000 or more from
such person. Separate and
independent contributions need not be included if less than $1,000. If a contribution is in the form of property and the fair
market value is readily
ascertainable, the description and fair market value must be submitted. If the fair market value of the property is not readily
ascertainable, you may
submit an estimated value.
The term “ person” includes individuals, fiduciaries, partnerships, corporations, associations, trusts, and exempt organizations.
Line 2.
If the trust receives contributions that are more than what the contributor can deduct under section 192, the person
making the excess
contributions may be required to file Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust
Under Section 4953 and
Computation of Section 192 Deduction, and pay the tax imposed by section 4953(a).
Instructions for Schedule A (Form 990-BL)
Initial Excise Taxes on Black Lung Benefit Trusts and Certain Related Persons
Schedule A (Form 990-BL) is not open for public inspection. If you attach any exhibits to Schedule A (Form 990-BL), be sure
to label them and write
“Not open for public inspection” on them.
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on these forms 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. Section 6109 requires you to provide your taxpayer identification
number (EIN or
SSN).
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You are not required to provide the information requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions
must be retained as long as
their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and tax return
information are
confidential, as required by section 6103.
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The time needed to complete and file this form and related schedules will vary depending on individual
circumstances. The estimated average times are:
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Form
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Recordkeeping
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Learning about the law or the form
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Preparing and sending the form to the IRS
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990-BL
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16 hrs., 30 min.
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3 hrs., 22 min.
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3 hrs., 48 min.
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Sch. A (Form 990-BL)
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6 hrs., 56 min.
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18 min.
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25 min.
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If you have comments concerning the accuracy of these time estimates or suggestions for making this form and
related schedule simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Tax Products
Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not send the tax form to this address. Instead,
see Where to
File on page 1.
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Purpose of Form.
Use Schedule A (Form 990-BL) only to report initial taxes under section 4951 or 4952. Schedule A (Form 990-BL) must
be attached to a completed Form
990-BL. It cannot be filed separately. If no taxes are due under section 4951 or 4952, do not file Schedule A (Form 990-BL).
See Who Must File in the “General Instructions” and the “Specific Instructions” of Form 990-BL for completing the
identification area of this schedule.
When Filer Is a Trust.
A trust filing this schedule for a year in which there are initial taxes due under section 4951 or 4952 completes
Part I as follows:
Section A (Section 4951).
Enter the information required in columns (b) through (f). Enter “ N/A” in columns (g) and (h).
Section B (Section 4952).
Enter the information required in columns (b) through (g). Enter “ N/A” in column (h).
When Filer Is a Self-dealer, Section A Only.
A self-dealer liable for initial taxes under section 4951 completes this schedule by entering the information required
by columns (b) through (g)
of Section A, Part I. Enter “ N/A” in column (h). Enter only the “ prorated” portion of column (g) on line 1 of Part II.
When Filer Is a Trustee, Sections A and B.
A trustee liable for initial taxes under sections 4951 and 4952 completes this schedule by entering the required information
in columns (b) through
(h) (other than (g)) of Section A and/or Section B, Part I. For Section A, enter the “ prorated” portion of column (h) on line 2 of Part II. For
Section B, enter the “ prorated” portion of column (h) on line 4 of Part II.
Part I—Initial Taxes on Self-dealing and Taxable Expenditures
Disqualified persons and trustees who participate in acts of self-dealing with a section 501(c)(21) trust and who have tax
years different from the
trust should use their own tax years to figure the initial tax and file the return.
Initial Section 4951 Taxes on Self-dealer.
An initial tax of 10% of the amount involved is imposed for each act of self-dealing between a disqualified person
and a section 501(c)(21) trust,
for each year (or part of a year) in the taxable period. The tax is paid by any disqualified person (other than a trustee
acting only as such) who
participated in the act of self-dealing.
Initial Section 4951 Taxes on Trustee.
When a tax is imposed on an act of self-dealing, any trustee who knowingly participated in such an act must pay a
tax of 2½% of the
amount involved in the act of self-dealing for each year or part of a year in the taxable period unless participation in the
act was not willful and
was due to reasonable cause.
Initial Section 4952 Taxes on Trust.
An initial tax of 10% of the amount of the expenditure is imposed on each taxable expenditure from the assets of a
section 501(c)(21) trust. The
tax is paid by the trustee out of the assets of the trust.
Initial Section 4952 Taxes on Trustee.
When a tax is imposed on the trust for a taxable expenditure, any trustee who knowingly agreed to the expenditure
must pay a tax of 2½% of the amount of the taxable expenditure unless such agreement was not willful and was due to reasonable
cause.
Liability for Tax.
A person's liability for tax as a self-dealer or trustee under sections 4951 and 4952 is joint and several. Therefore,
if more than one person is
liable for tax on an act of self-dealing as a self-dealer or trustee, they may prorate the tax among themselves. The IRS may
assess a deficiency
against one or more self-dealers or trustees liable for the tax under section 4951 or 4952, regardless of the apportionment
of tax shown on the
return, if the amount paid by all those who are liable for a particular transaction, is less than the total tax due for that
transaction.
Generally, no more than three lines in Part II will be completed on any return. However, when a trustee is liable for section
4951 initial taxes
both as a trustee and as a self-dealer and is also liable for section 4952 initial taxes because of taxable expenditure involvement,
enter the section
4951 taxes on lines 1 and 2 and enter the section 4952 tax on line 4, with a total of the tax due on line 5. Pay in full with
the return. Make the
check or money order payable to the “United States Treasury.” In all other instances, follow “Specific Instructions” given above.
The payment of section 4951 tax for the tax year will not necessarily satisfy the entire initial tax liability for an act
of self-dealing. A
self-dealer who is liable for tax under section 4951 must file Form 990-BL, Schedule A (Form 990-BL) and must pay the tax
for each year (or part of a
year) in the “taxable period.”
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