What Form 990-BL (2010) Is For
Form 990-BL was an information and initial excise tax return used by Black Lung benefit trusts created under Title IV of the Black Lung Benefits Act. These trusts, established by coal mine operators, provided medical benefits and monthly payments to coal miners totally disabled by black lung disease and to eligible survivors after a miner's death. The Internal Revenue Service used this filing to monitor benefit payments, excise tax liability, and compliance with Internal Revenue Code Section 501(c)(21) for coal industry trusts.
Note: Form 990-BL is a historical form. Beginning with tax year 2021, Section 501(c)(21) trusts can no longer file Form 990-BL. These trusts must now file Form 990, or Form 990-N if eligible, to satisfy their annual reporting obligation.
When You'd Use Form 990-BL (2010)
For the 2010 tax year, trustees of Black Lung benefit trusts were required to file Form 990-BL if annual receipts exceeded $50,000 or when the trust owed any excise tax. Late or amended filings were required if the original filing contained errors or was missed. Trustees who need more time may request an extension by submitting Form 8868 to the Internal Revenue Service before the due date.
Important: Beginning with tax year 2021, Section 501(c)(21) trusts can no longer file Form 990-BL. For tax years 2021 and later, these trusts must file Form 990. Trusts with gross receipts of no more than $50,000 in each tax year are exempt from filing Form 990 and must instead file Form 990-N.
Key Rules or Details for 2010
- Filing Threshold: For the 2010 tax year, trusts receiving more than $50,000 in coal excise tax revenue or other income were required to file the initial excise tax return even if no excise tax liability existed. For tax years 2021 and later, Section 501(c)(21) trusts file Form 990 instead. Trusts with gross receipts normally no more than $50,000 submit Form 990-N.
- Excise Tax Rates: Self-dealing under Internal Revenue Code Section 4951 triggered a 10 percent tax on related parties and a 2.5 percent tax on trustees. For taxable expenditures under Section 4952, the trust itself paid 10 percent, while trustees who knowingly approved such purposes paid 2.5 percent.
- Public Disclosure: Most parts of the return were open to inspection. However, contributor names and addresses were excluded, and Schedule A of Form 990-BL was also excluded from the annual information return for public inspection purposes. This ensured transparency while protecting the privacy of contributors and family members of coal mine workers.
- Permitted Activities: Trusts could only fund medical coverage for coal miners, pay administrative expenses, or purchase insurance for coal workers' pneumoconiosis claims.
- Filing Address: For the 2010 tax year, the completed return was sent to the Internal Revenue Service Center, Kansas City, Missouri.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Information
Collect details on coal mine employment, employer identification number, mailing address, and accounting period. Include data on coal excise tax revenue and benefit payments from prior years.
Step 2: Complete Part I: Revenue and Expenses
Report contributions, excise tax collections, and other receipts from coal produced at surface mines or subsurface mines. List medical benefits, administrative expenses, and interest payments from the trust fund.
Step 3: Complete Part II: Balance Sheets
Provide beginning and end-of-year balances for trust fund assets. Include cash, deposits, general fund transfers, and outstanding repayable advances from the federal Black Lung program.
Step 4: Complete Part III: Questionnaire
Answer questions verifying compliance with the Black Lung Benefits Act. Confirm that no self-dealing or prohibited investments occurred within the trust.
Step 5: Attach Schedule A if Required
If self-dealing or taxable expenditures occurred, compute initial excise taxes on Schedule A using applicable tax rate tables. Provide explanations for any transactions involving related parties.
Step 6: Sign and File
The authorized trustee must sign the form under penalties of perjury. Mail the completed return and any payments to the IRS address listed for the applicable filing year.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing the Wrong Return: For tax years prior to 2021, some trustees filed the wrong return version or missed the filing threshold entirely. For tax years 2021 and later, Section 501(c)(21) trusts can no longer file Form 990-BL at all. These trusts must file Form 990, or Form 990-N if gross receipts are normally no more than $50,000. Review the requirements for the applicable tax year before filing.
- Omitting Schedule A: For 2010 filings, failure to attach Schedule A for initial excise taxes under Internal Revenue Code Section 4951 or 4952 caused penalties. Always confirm the need for this attachment when preparing a historical return.
- Improper Investments: Investing coal excise tax revenue in corporate securities rather than U.S. government obligations violated trust restrictions. Keep investments limited to permissible instruments.
- Ignoring Public Inspection Rules: Trusts were required to make their returns available for public review, excluding contributor names and addresses and Schedule A. Establish clear procedures for inspection requests to ensure compliance.
- Misreporting Benefit Payments: Incorrect reporting of medical benefits and monthly payments for eligible miners or surviving dependents delayed processing. Verify each entry matches benefit records.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
For historical 2010 filings, the Internal Revenue Service processed Form 990-BL at its Kansas City facility. Information was added to the exempt organization master file for the federal Black Lung Benefits Program. The IRS could review filings for unusual benefit payments, unpaid interest, or questionable transactions involving coal excise taxes. If violations existed, the agency issued notices requiring correction. Failure to correct could result in additional taxes or loss of trust fund exemption.
For tax years 2021 and later, Section 501(c)(21) trusts no longer file Form 990-BL. These trusts must file Form 990 or Form 990-N with the IRS if eligible. The same post-filing review and compliance framework applies under the updated filing requirements.
FAQs
What is the purpose of IRS Form 990-BL (2010) under the Black Lung Benefits Act?
It reported coal excise tax revenue and trust fund activity supporting Black Lung benefits for miners suffering from coal workers' pneumoconiosis or eligible survivors after a miner's death. Form 990-BL is a historical form; beginning with tax year 2021, Section 501(c)(21) trusts can no longer file it.
How are excise tax rates calculated for coal mines filing Form 990-BL?
For the 2010 tax year, excise tax rates depended on the type of coal mined: $1.10 per ton for coal mined underground and $0.55 per ton for surface-mined coal.
What are the current filing rules for Black Lung benefit trusts?
Beginning with tax year 2021, Section 501(c)(21) trusts can no longer file Form 990-BL. These trusts must now file Form 990. Trusts with gross receipts of no more than $50,000 in each tax year are exempt from filing Form 990 but must file Form 990-N instead.
Who pays the Black Lung excise tax to the Black Lung Disability Trust Fund?
Coal mine operators pay this tax on domestically produced coal, with the revenue credited to the federal trust fund to cover Black Lung claims and unpaid interest.
Does the Inflation Reduction Act affect the Black Lung excise tax?
The Inflation Reduction Act included provisions related to the Black Lung excise tax and the federal Black Lung benefits program. For the most current guidance, consult official IRS publications or a qualified tax professional.
How did the Internal Revenue Service use Form 990-BL to monitor excise tax?
For tax years through 2020, the IRS used Form 990-BL to ensure that Black Lung benefit trusts applied revenue from the coal excise tax correctly for workers' compensation programs. Beginning with tax year 2021, Section 501(c)(21) trusts file Form 990 or Form 990-N instead, and the IRS monitors compliance through those forms.
What if a Black Lung Program trust needs to file or correct a historical return?
For tax years through 2020, file or amend Form 990-BL promptly, including any corrections to excise tax calculations or benefit reporting. For tax years 2021 and later, file Form 990 or Form 990-N as applicable. Prompt correction prevents additional interest and potential penalties.
For more resources on filing or understanding prior-year IRS forms, visit our guide on business income tax forms.
