What IRS Form 990-BL (2016) Is For
IRS Form 990-BL (2016) served as the information and initial excise tax return for Black Lung Benefit Trusts and certain related persons established under section 501(c)(21) of the Internal Revenue Code. Its purpose was to ensure compliance with federal tax reporting requirements for trusts that supported coal miners suffering from black lung disease and their families. The form collected detailed information on trust fund revenue, benefit payments, excise taxes, and expenditures associated with the operation of these specialized trust funds.
This form played an essential role in maintaining transparency within the federal Black Lung Program, which provided workers' compensation, medical coverage, and financial assistance to eligible miners and dependent family members affected by pneumoconiosis arising from coal mine employment. Smaller trusts that fall below the filing threshold may use the IRS Form 990-N (e-Postcard) to fulfill their annual reporting obligations.
When You’d Use IRS Form 990-BL (2016)
You would use IRS Form 990-BL (2016) to report, amend, or correct tax filings related to Black Lung Disability trust fund finances or excise tax liabilities for that fiscal year.
- Late filing: This form is used when a trust missed the original deadline for filing its annual report for 2016 and must now file late to maintain compliance with IRS regulations.
- Amended returns: These are filed to correct previously reported errors or omissions involving excise tax payments, expenditures, or trust fund balances.
- IRS compliance notices: Trustees use the form in response to IRS correspondence requesting clarification, supporting documents, or updated financial data for the trust.
- Penalty reduction: Filing the form late or amended can help reduce accumulated penalties and interest by demonstrating good faith compliance with federal tax law.
If the IRS issues balance-due or clarification notices, refer to the IRS Collection Process guide to understand the next steps in such cases.
Key Rules or Details for 2016
Several unique rules applied to IRS Form 990-BL (2016), reflecting specific compliance requirements for that tax year. Trustees must review these regulations carefully before filing to avoid errors or penalties.
- Filing threshold: Trusts with annual gross receipts exceeding $50,000 were required to file Form 990-BL, while those with receipts of $50,000 or less were required to file Form 990-N (e-Postcard).
- Excise tax rates: Self-dealing transactions and prohibited expenditures were subject to a 10 percent excise tax, which had to be reported on Schedule A of Form 990-BL.
- Form 6069 requirement: Trusts that received excess contributions from coal companies were required to file Form 6069 to report and pay excise taxes on those contributions.
- Penalty limits: Smaller trusts faced penalties of $20 per day, capped at $10,000 or 5 percent of their gross receipts, while larger organizations faced penalties of $100 per day, with a maximum of $51,000.
- Retention period: Trustees were required to keep all filed forms, supporting documents, and evidence of payments for at least three years for IRS review and verification.
Step-by-Step (High Level)
Completing IRS Form 990-BL (2016) correctly requires accurate financial reporting and complete documentation of trust fund activities for the year. Trustees should follow these general steps to ensure compliance.
- Verify trust information: Before beginning the form, confirm that the trust’s name, employer identification number (EIN), and fiscal year dates are accurate.
- Request IRS transcripts: Use Form 4506-T to request transcripts that verify prior filings and payments, ensuring that the correct version of the form is completed.
- Complete the form accurately: Report all trust fund revenue, expenditures, and excise taxes imposed under the Internal Revenue Code.
- Attach required schedules: Include Schedule A if excise taxes apply, and add detailed explanations for any amendments or adjustments made.
- Submit the form to the correct address: Mail completed filings to the IRS Center in Ogden, Utah, or use an IRS-approved private delivery service.
- Retain copies and payment records: Keep copies of all submitted documents, proof of payment, and correspondence for at least three years in case of an IRS review.
If payment of excise taxes or penalties cannot be made in full, review the IRS Form 9465 Installment Agreement Request Guide for detailed steps on requesting a payment plan.
You can also find detailed filing instructions in the IRS Form Help Center.
Common Mistakes and How to Avoid Them
Filing IRS Form 990-BL (2016) requires precision and awareness of federal reporting standards. Many trustees make errors that can lead to penalties, audits, or compliance delays, but these can be prevented with careful preparation.
- Filing the wrong version: Always confirm that you are completing the 2016 version of Form 990-BL to ensure the information matches that year’s requirements.
- Misreporting prohibited expenditures: Review all transactions to ensure that payments classified as administrative or benefit costs comply with IRS regulations.
- Omitting Form 6069 when required: File Form 6069 for any excess contributions from coal companies to accurately report excise taxes and avoid additional assessments.
- Incorrect gross receipts classification: Double-check annual revenue to determine whether the trust must file Form 990-BL or Form 990-N.
- Weak explanations for late filing: Provide sufficient written reasoning and supporting documentation to justify reasonable cause when requesting penalty relief.
When filing late, include a clear explanation and supporting evidence; reviewing the Penalty Abatement guide can help you frame a strong, reasonable-cause statement.
What Happens After You File
After you file IRS Form 990-BL (2016), the IRS generally processes the return within several months, though late or amended filings may take longer. If excise taxes or penalties are owed, interest will continue to accrue until the balance is paid. Trustees may use Form 9465 to request an installment agreement if immediate payment is impossible.
The IRS may also review supporting documents to determine whether expenditures were allowable under the Internal Revenue Code. Once processed, the return becomes part of the public record; however, contributor details remain confidential.
If excise taxes or penalties remain outstanding, see IRS Payment Plans to learn how to stay compliant while resolving balances.
FAQs
Who are considered certain related persons for IRS Form 990-BL (2016)?
Certain related persons include individuals or entities with financial or administrative control over the trust, such as trustees, officers, or family members of coal company employees. Reporting ensures that all transactions are correctly attributed to maintain transparency within the trust and comply with IRS regulations for totally disabled miners and their dependents.
What are Black Lung Benefit Trusts under the Internal Revenue Code?
Black lung benefit trusts are tax-exempt entities created to provide medical coverage, workers' compensation, and income support for miners diagnosed with pneumoconiosis. These trusts are authorized under section 501(c)(21) and monitored by the Social Security Administration and the IRS to ensure compliance with trust fund and tax laws.
What is the purpose of the Black Lung Benefits Program?
The Black Lung Benefits Program provides financial and medical assistance to eligible coal miners and their survivors. It operates under the Department of Labor and is funded through excise taxes, company contributions, and payments from the general fund to sustain trust fund obligations.
What does information and initial excise mean in IRS Form 990-BL (2016)?
Information and initial excise refer to the sections of Form 990-BL that require trusts to disclose annual activity and report excise taxes imposed on prohibited transactions. Trustees must provide detailed Form 990-BL information, including all excise-related financial data, to ensure accurate assessment and compliance.
How does the Black Lung Benefits Act relate to IRS Form 990-BL (2016)?
The Black Lung Benefits Act establishes the framework for compensating miners suffering from black lung disease and outlines funding through benefit trusts. The act requires trustees to file BL information and initial excise reports using Form 990-BL to document financial operations and ensure proper use of trust assets.
