What IRS Form 990-BL (2017) Is For

Form 990-BL is the Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons (IRS Instructions for Form 990-BL (2017)). This specialized return is used by section 501(c)(21) black lung benefit trusts to fulfill annual reporting obligations and report excise taxes on self-dealing or taxable expenditures when applicable.

When You’d Use Form 990-BL for 2017 (Late or Amended Filing)

A 2017 Form 990-BL would be filed late if the trust missed the original May 2018 deadline, or in response to IRS compliance notices for unfiled returns. Amended filings are required to correct errors in reporting excise taxes, trustee compensation, or previously unreported acts of self-dealing. Penalties accrue daily until the return is filed.

Key Rules Specific to 2017

• Due date: 15th day of the 5th month after year-end (May 15, 2018 for calendar-year trusts).
  
  
• Penalties: $20 per day for small organizations, $100 per day for large organizations (over $1M receipts).
  
  
• Maximum penalties: $10,000 for smaller trusts, $50,000 for large organizations.
  
  
• Excise tax rates: 10% on self-dealing (disqualified persons), 2.5% on trustees, and 10% on taxable expenditures.
  
  

Step-by-Step (High Level)

1. Gather records: Collect IRS transcripts, trust financials, and related correspondence for 2017.
   
   
2. Complete correct form: Use the September 2017 revision of Form 990-BL.
   
   
3. Attach schedules: Include Schedule A if excise taxes apply.
   
   
4. Mail to correct address: IRS, 201 W. River Center Blvd., Stop 312, TE/GE, Covington, KY 41011.
   
   
5. Maintain records: Keep copies of all filed documents for compliance and audit readiness.
   
   

Common Mistakes and How to Avoid Them

• Not reporting all self-dealing transactions with disqualified persons.
  
  
• Reporting impermissible investments outside of approved categories.
  
  
• Omitting trustee compensation information.
  
  
• Using outdated forms or mailing to the wrong address.
  
  
• Lacking documentation for benefit payments under section 501(c)(21)(A).
  
  
• Forgetting required trustee or preparer signatures.
  
  

What Happens After You File

The IRS processes most Form 990-BL filings within 6–12 weeks, though late filings may take longer. You may receive IRS notices for additional details or penalty assessments. Excise taxes are due with the return, but installment payment options are available via Form 9465. Filing late does not prevent audits. Appeals rights are available if you disagree with IRS findings.

FAQs

What penalties apply for filing my 2017 Form 990-BL late?

The penalty is $20 per day for smaller trusts and $100 per day for larger trusts with receipts over $1M. These penalties apply from the original due date until filing. The maximum penalty caps are $10,000 for small organizations and $50,000 for large organizations. Penalties continue to accrue until you file the overdue return.

Should I file even if I can’t pay the excise taxes owed?

Yes, you should file the return to stop additional failure-to-file penalties from accruing. Even if excise taxes remain unpaid, the IRS offers installment payment plans via Form 9465. Failure to file creates greater exposure to both penalties and compliance actions than filing without immediate full payment of taxes owed.

Can I get my account transcripts for 2017 to help prepare the return?

Yes, transcripts are available through Form 4506-T or by contacting the IRS Exempt Organizations helpline. Account transcripts confirm prior filings, show assessed penalties, and highlight IRS records of the trust’s compliance history. Having transcripts ensures accuracy in preparing a late or amended return and helps in discussions about possible penalty abatement.

Do I need to amend state returns if I file a late federal Form 990-BL?

Most states do not require separate black lung benefit trust returns, but compliance varies by jurisdiction. Some states tie their nonprofit reporting directly to the federal filing. Check with your state’s tax authority or attorney general’s office to determine whether an amended state filing is necessary after submitting a federal correction.

Is there a statute of limitations for filing this late return?

No, there is no statute of limitations on filing Form 990-BL for exempt organizations. The IRS can demand the return indefinitely, and penalties will continue accruing until you comply. Unlike income tax refunds, there is no refund statute tied to this information return, so filing late remains required regardless of timing.

What if I discover additional excise tax liabilities for other years?

If liabilities exist for other years, you must file separate Form 990-BL returns for each affected tax year. The IRS reviews compliance year by year, and missing filings for multiple years can compound penalties. Consulting a tax professional may help address cumulative liabilities and prepare penalty abatement or compliance strategies across years.

Can penalties be waived for reasonable cause?

Yes, penalties may be abated if you demonstrate reasonable cause and lack of willful neglect. Valid reasons include serious illness, natural disasters, or reliance on incorrect professional advice. Providing detailed explanations and supporting documentation increases the likelihood of penalty relief. A formal request should be submitted along with your late or amended filing.