What Form 990-BL (2010) Is For
Form 990-BL is 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, provide 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 uses this filing to monitor benefit payments, excise tax liability, and compliance with Internal Revenue Code Section 501(c)(21) for coal industry trusts.
When You’d Use Form 990-BL (2010)
Trustees of Black Lung benefit trusts must file Form 990-BL each fiscal year if annual receipts exceed $50,000 or when the trust owes any excise tax. This includes excise tax revenue related to Black Lung claims under the federal Black Lung Disability Trust Fund. Late or amended filings are required if the original filing contained errors or was missed. Trustees needing more time may request an extension by submitting Form 8868 to the Internal Revenue Service before the due date.
Key Rules or Details for 2010
- Filing Threshold: Trusts receiving more than $50,000 in coal excise tax revenue or other income must file the initial excise tax return even if no excise tax liability exists.
- Excise Tax Rates: Self-dealing under Internal Revenue Code Section 4951 triggers a 10 percent tax on related parties and a 2.5 percent tax on trustees. For taxable expenditures under Section 4952, the trust itself pays 10 percent, while trustees who knowingly approve such purposes pay 2.5 percent.
- Public Disclosure: Most parts of the return are open to inspection, except for contributor information. This ensures transparency while protecting the family members of coal mine workers.
- Permitted Activities: Trusts may only fund medical coverage for coal miners, pay administrative expenses, or purchase insurance for coal workers’ pneumoconiosis claims. Investments in coal excise tax funds must follow federal restrictions for such purposes.
- Filing Address: Send the completed return to the Internal Revenue Service Center, Kansas City, Missouri, mailing address.
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 nation’s coal mines trust system.
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 such employment-related filings.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing the Wrong Return: Some coal mine operators file Form 990-BL instead of Form 990-N when receipts are below $50,000. Review annual income and excise tax records before filing.
- Omitting Schedule A: Failure to attach Schedule A for initial excise taxes under Internal Revenue Code Section 4951 or 4952 causes penalties. Always confirm the need for this attachment.
- Improper Investments: Investing coal excise tax revenue in corporate securities rather than federal coal bonds violates trust restrictions. Keep investments limited to U.S. government obligations.
- Ignoring Public Inspection Rules: Trusts are required to make their returns available for public review. Establish clear procedures for requests to ensure compliance with human services transparency requirements.
- Misreporting Benefit Payments: Incorrect reporting of medical benefits and monthly payments for eligible miners or surviving dependents delays processing. Verify each entry matches benefit records and appropriations acts.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After submission, the Internal Revenue Service processes Form 990-BL at its Kansas City facility. Information is added to the exempt organization master file for the federal Black Lung Benefits Program. The IRS may review filings for unusual benefit payments, unpaid interest, or questionable transactions involving coal excise taxes. If violations exist, the agency issues notices requiring correction. Failure to correct may result in additional taxes or loss of trust fund exemption. Under the Inflation Reduction Act’s permanent extension of the Black Lung excise tax, maintaining compliance helps sustain the solvency of the federal Black Lung disability trust.
FAQs
What is the purpose of IRS Form 990-BL (2010) under the Black Lung Benefits Act?
It reports 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.
How are excise tax rates calculated for coal mines filing Form 990-BL?
Excise tax rates depend on coal’s selling price: $1.10 per ton for coal mined underground and $0.55 per ton for surface-mined coal in 2010.
What are the filing rules for Black Lung benefit trusts under the Black Lung Program?
Trustees must file an annual return if receipts exceed $50,000 or if any excise tax applies to benefit payments, medical coverage, or administrative expenses.
Who pays the Black Lung excise tax to the Black Lung Disability Trust Fund?
Coal mine operators pay this tax on coal produced domestically, with 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?
Yes. The Inflation Reduction Act permanently extended the coal tax rate to ensure ongoing funding for the federal Black Lung Benefits Program and repayment of outstanding repayable advances.
How does the Internal Revenue Service use Form 990-BL to monitor excise tax?
The IRS uses the form to ensure that Black Lung benefit trusts apply revenue from the coal excise tax correctly for workers' compensation programs and related health and human services needs.
What if a Black Lung Program trust files late or discovers errors?
File an amended Form 990-BL promptly, including corrections to excise tax calculations or benefit reporting. Prompt correction prevents additional interest payments and potential penalties.
