What IRS Form 990 BL Is For
IRS Form 990-BL serves as both an information return and an excise tax filing for Black Lung Benefit Trusts. Coal mine operators establish these trusts to provide Black Lung benefits and medical care to eligible miners, their surviving dependents, and family members under the federal Black Lung program. The Internal Revenue Code, Section 501(c)(21), grants tax-exempt status to these trusts, provided they comply with the rules for paying benefit payments and accurately reporting excise taxes. The form also applies to certain related parties established in prohibited transactions that offer benefits, including those that violate those requirements.
When You’d Use Form 990-BL
You must file the IRBlack Lung Program if you manage a Black Lung program, an individual, or a subdivision of 8 persons who file annually, unless gross receipts remain below the filing threshold. The due date is the 15th day of the month following the end of the tax year. If more time is needed, Form 8868 provides an automatic extension. Late filings trigger penalties under Section 6652 of the Internal Revenue Code. Amended returns are filed when errors or unreported excise taxes are discovered after submission.
Key Rules or Details for 2012
- Permitted Trust Purposes: The trust could only use its assets to pay Black Lung benefits, medical coverage, and administrative expenses, or to transfer funds to the Black Lung Disability Trust Fund.
- Investment Restrictions: The trust could invest only in U.S. Treasury securities, non-defaulted state bonds, or insured bank accounts—ensuring that coal excise tax revenue was preserved for eligible miners.
- Excise Tax Rates: Excise tax rates for 2012 were based on coal’s selling price: $1.10 per ton for coal mined underground and $0.55 per ton for surface-mined coal, not exceeding 4.4% of the sales price.
- Excise Tax Triggers: Initial taxes are applied when Black Lung Benefit Trusts or certain related individuals engage in self-dealing or make nonqualified expenditures. Uncorrected violations may result in additional excise taxes.
- Public Inspection Requirements: Form 990-BL became a public record except for the contributor section, which listed donors providing $5,000 or more.
- Legislative Context: The Inflation Reduction Act subsequently made the coal excise tax rates permanent, ensuring continued funding for the federal Black Lung program and trust fund.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Records
Collect bank statements, investment records, and documentation for all benefit payments, administrative expenses, and excise tax transactions related to coal mined during the year.
Step 2: Complete the identification
Enter the trust’s subsequent address and employer identification number, ensuring that the filing is for the trust-related parties subject to excise tax.
Step 3: Report Revenue and Expenses
List revenue from coal excise taxes received, contributions from mine operators, interest income, and expenses for paying benefits or maintaining compliance with the Black Lung Benefits Act.
Step 4: Fill Out Balance Sheet Information
Provide beginning and ending balances for cash, investments, and liabilities to demonstrate accurate accounting of trust funds used to pay benefits.
Step 5: Answer the Compliance Questionnaire
Respond to questions verifying that the trust followed legal requirements, avoided self-dealing, and limited activities to approved Black Lung benefits program purposes.
Step 6: Include Schedule A if Excise Taxes Apply
If excise taxes were triggered, attach Schedule A detailing the nature of the transaction, the tax rate applied, and the corrective actions taken.
Step 7: Sign and File with the IRS
A trustee or authorized representative must sign the return under penalties of perjury before mailing it to the Internal Revenue Service at the Covington, Kentucky, address.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Incorrectly Reporting Contributions: Some filers list ineligible property as contributions. Verify that only cash or approved investments from coal mine operators are included.
- Omitting Schedule A: When excise taxes arise from self-dealing or other violations, Schedule A must be attached to avoid an incomplete return.
- Making Improper Investments: Do not invest in mutual funds, corporate stocks, or real estate. Stick to Treasury securities, state bonds, or insured bank accounts.
- Late or Missing Filings: Late returns lead to automatic penalties. Mark deadlines and use Form 8868 to request an extension of the due date if needed.
- Incomplete Questionnaire Responses: Unanswered questions increase audit risk. Ensure that every compliance question is answered with a clear and accurate response.
- Improper Use of Funds: Only expenses directly tied to Black Lung benefit payments or administration are permitted. Nonqualifying expenditures may trigger excise taxes.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once filed, the Internal Revenue Service reviews Form 990-BL for accuracy and completeness. If excise taxes apply, payment must be enclosed with the return. Most filings are processed within several weeks, after which the nonconfidential parts become publicly accessible. Trusts must retain copies for at least three years and continue filing annually as long as they remain in operation. Repeated violations of trust purposes or improper handling of coal excise taxes may result in revocation of tax-exempt status or further penalties.
FAQs
What is the Black Lung Benefits Act, and how does it affect Black Lung Benefit Trusts?
The Black Lung Benefits Act requires coal mine operators to provide compensation and medical benefits to coal miners totally disabled by pneumoconiosis. Black Lung Benefit Trusts fund these payments when operators create them under Internal Revenue Code section 501(c)(21).
How does the excise tax on coal support the Black Lung benefits program?
The coal excise tax, applied to both surface and underground coal mined, funds the Black Lung Disability Trust Fund, ensuring eligible miners and their survivors receive monthly benefit payments and medical coverage.
Who are considered certain related individuals for excise tax purposes?
Certain related individuals include trustees, officers, and family members involved with the trust or mine operator who engage in prohibited transactions. They may owe excise taxes if they benefit improperly from trust assets.
What are the current excise tax rates for coal mined under the Black Lung program?
For 2012, the excise tax rates were $1.10 per ton for underground coal and $0.55 per ton for surface mines, subject to a limit of 4.4% of the coal’s sales price.
How do Black Lung Benefit Trusts pay benefits to eligible miners and survivors?
Trusts use collected coal excise tax revenue and operator contributions to pay benefits, medical coverage, and basic benefit rate payments to eligible miners, surviving spouses, and other family members as required under the Black Lung Benefits Act.
What happens to benefit payments if a miner’s death occurs?
When a miner dies, surviving dependents, such as a surviving spouse or family members, may continue to receive Black Lung benefits under a rebuttable presumption of eligibility established by the Social Security Administration.
How do Black Lung Benefit Trusts remain compliant with the Internal Revenue Service?
Compliance requires the timely filing of Form 990-BL, accurate reporting of coal excise taxes, proper payment of benefit obligations, and adherence to investment and spending limits as mandated by federal law.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
