What IRS Form 990-BL (2011) Is For
IRS Form 990-BL (2011) reports financial details for Black Lung Benefit Trusts that provide Black Lung benefits, medical benefits, and monthly payments to coal miners and eligible survivors. These trusts are funded through collections of coal excise taxes, which help sustain the federal Black Lung Program and the Black Lung Disability Trust Fund. The form records excise tax activity, the selling price of coal, and benefit payments made to miners or their surviving dependents affected by pneumoconiosis resulting from coal mine employment.
When You’d Use IRS Form 990-BL (2011)
Trustees use Form 990-BL when filing annual reports for coal mining trusts that pay benefits under the Black Lung Benefit Act. The return must be filed by the fifteenth day of the fifth month following the close of the trust’s fiscal year. Late filers must pay any excise tax due and may face a civil penalty. If a coal company or trust cannot meet the deadline, it may request an extension by filing Form 8868. Amended filings apply when a previously filed return requires correction.
Key Rules or Details for 2011
- Filing Threshold: A Black Lung Benefit Trust must file Form 990-BL if it normally receives more than $50,000 in annual contributions or coal excise tax revenue from the responsible operator.
- Who Must File: Trustees of Black Lung Benefit Trusts are responsible for submitting the excise tax report, but disqualified individuals may also need to file when self-dealing occurs.
- Self-Dealing Restrictions: Trustees and coal companies must avoid transactions such as loans, sales, or exchanges involving trust assets. Violations can result in excise tax penalties under the Black Lung Benefit Act.
- Taxable Expenditures: Only specific expenditures qualify under the federal Black Lung program, such as benefit payments, medical coverage, diagnostic testing, and durable medical equipment for eligible miners.
- Investment Rules: Black Lung Benefit Trusts may only invest in approved securities, federal coal bonds, or bank deposits insured by the federal government, as outlined in employee pay schedules and trust fund guidelines.
- Excise Tax Rates: The coal excise tax rates for 2011 were $1.10 per ton for coal mined underground and $0.55 per ton for surface-mined coal, based on the coal’s sales price.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Financial Records
Collect all records of coal mined, benefit payments made, medical services provided, and coal excise tax paid to the Internal Revenue Service through the Black Lung Benefit Trust.
Step 2: Complete Identification Details
Enter the trust’s name, Employer Identification Number, and indicate whether it covers surface mines or subsurface mines. Identify the responsible operator and include all coal mine workers' compensation information.
Step 3: Report Revenue and Expenses
List contributions, coal excise tax revenue, and investment income, then report benefit payments and other workers' compensation expenses under the Black Lung program.
Step 4: Prepare Balance Sheet Data
Summarize trust assets, coal’s selling price, liabilities, and remaining funds in the Black Lung Benefit Trust, ensuring the totals balance properly.
Step 5: Review Schedule A for Excise Tax Liabilities
Attach Schedule A if the trust, trustee, or coal company owes Black Lung excise tax for self-dealing or unauthorized expenditures.
Step 6: Sign and File
The authorized trustee must sign and file Form 990-BL with the IRS, specifically with the office in Covington, Kentucky. Include payment for any excise tax due from coal mined or coal exported during the reporting period.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Missing the Filing Deadline: Trustees often overlook the five-month deadline that follows the end of the year. Filing on time or using Form 8868 prevents late penalties and interest charges.
- Reporting Incorrect Excise Tax Rates: Some filers miscalculate based on the coal’s sales price. Always confirm current excise tax rates for underground and surface-mined coal with the Internal Revenue Service.
- Failing to Identify Self-Dealing: A coal company investing trust funds in its accounts may trigger a Black Lung excise tax penalty. Review all transactions involving related parties before submission.
- Incomplete Trustee Information: Omitting trustee details or compensation data can lead to rejection. List every trustee or coal miner representative in the report, even those receiving no payment.
- Improper Investment Reporting: Including unauthorized investments outside approved federal employee or trust fund securities constitutes a compliance violation. Confirm assets meet trust fund requirements before filing.
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 submitted, the Internal Revenue Service reviews Form 990-BL for accuracy and compliance with the Black Lung Benefit Act. The agency processes excise tax payments related to coal mined and monitors revenue from coal excise taxes for use in the Black Lung Disability Trust Fund. Portions of the return are available for public inspection, except contributor information. The IRS may issue notices if discrepancies appear in benefit payments, medical benefits, or coal excise tax reporting.
FAQs
What is the purpose of IRS Form 990-BL (2011) under the Black Lung Benefit Act?
IRS Form 990-BL (2011) helps monitor compliance with the Black Lung Benefits Act by reporting coal excise tax collections, Black Lung benefits, and financial activity from coal mining trusts that support affected miners.
How does the coal excise tax support the Black Lung Program?
The coal excise tax funds the Black Lung Disability Trust Fund, which covers medical and monthly benefits for coal miners totally disabled by Black Lung disease and their surviving dependents.
Who must file under the Black Lung Benefit Trusts rule?
Trustees managing Black Lung Benefit Trusts or coal companies serving as responsible operators must file Form 990-BL to document excise tax payments, benefit payments, and compliance with federal trust fund standards.
How are excise tax rates applied to coal mining operations?
Excise tax rates depend on whether coal is mined underground or at surface mines. The Internal Revenue Service calculates the tax based on coal’s selling price and tonnage produced.
How does the Inflation Reduction Act affect the Black Lung program?
The Inflation Reduction Act permanently extended the coal excise tax rates that fund the Black Lung Benefit Program, ensuring continued financial support for coal miners and eligible survivors.
What happens if a coal company fails to pay the Black Lung excise tax?
A coal company that fails to pay or underreports its coal excise tax may face a civil penalty. Unpaid taxes reduce the coal excise tax revenue available for benefit payments under the federal Black Lung Disability Trust Fund.
What medical services are included under Black Lung benefits?
The federal Black Lung program covers a complete pulmonary evaluation, diagnostic testing, chest X-ray exams, and durable medical equipment for miners suffering from coal workers' pneumoconiosis or related conditions.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
