Form 990-PF Filing Checklist for Tax Year 2018
Overview and Applicability
Form 990-PF is the annual return for private foundations for the tax year 2018. Eligible filers include Section 501(c)(3) exempt private foundations, Section 4947(a)(1) nonexempt charitable trusts, and Section 501(c)(3) taxable private foundations.
No Economic Impact Payment reconciliation or American Rescue Plan Act provisions apply to 2018. The Tax Cuts and Jobs Act provisions include adjusted tax tables that affect the calculation of net investment income.
Foundation Status and Filing Requirements
Confirm the organization qualifies as one of the three eligible entity types. All domestic private foundations generally must file Form 990-PF unless specifically excepted, regardless of whether they have gross investment income. The accounting method selected in the header is applied consistently throughout the form.
Net Investment Income and Contributors
Collect Forms 1099-INT for interest, 1099-DIV for dividends, 1099-B for capital transactions, rental income records, and annuity statements. Private foundations calculate net investment income using categories specified in IRC Section 494(c)(2). Wages, grants paid, and charitable expenses are not deductible against investment income.
For contributor reporting, complete Part I, line 1. Check Part I, line two, to determine if contributor schedules are required to be attached as per the instructions. Provide contributor details in Part I or attached statements. Maintain documentation for all contributions, including property descriptions and fair market values, to ensure accurate records.
Charitable Distributions and Grants
Compile records of all grants, gifts, and distributions made in 2018. Distinguish qualifying distributions (charitable gifts and program-related investments) from nonqualifying distributions. Report grants and contributions paid in Part XV with grantee name, address, purpose, and amount per Part XV instructions.
Excise Tax Calculation
Calculate excise tax on net investment income in Part VI. The standard rate is 2% of net investment income, as per IRC Section 4940(a). Foundations may qualify for one percent under Section 4940(e) by completing Part V to demonstrate qualification based on the five-year base period distribution ratios.
Compute net investment income per IRC Section 4940(c)(2) and apply the applicable rate. Foreign organizations meeting specific criteria may pay a 4 percent rate. Section 4947(a)(1) trusts and taxable foundations also report Section 511 tax and Subtitle A income tax in Part VI.
Balance Sheets and Capital Gains
Complete Part II with beginning and ending book values. Part VII-A, line 7, asks if the foundation had at least $5,000 in assets at any time during the year. If yes, complete Part II, column (c), with fair market values. Reconcile Part II with Part III changes in net assets.
Complete Part IV for all capital gains and losses. Document property description, dates, sales price, basis, and gain or loss. For assets held on December 31, 1969, complete special columns per the Tax Reform Act of 1969 provisions. Enter totals on Part I, lines 7 and 8. Attach Form 8949 or Schedule D if additional details are required.
Compensation and Compliance
Report compensation for officers, directors, trustees, and key employees in Part VIII with names, titles, hours, and amounts. Disclose all transactions with disqualified persons as defined in IRC Section 4946. Document compliance with self-dealing prohibitions or identify violations with corrective actions and excise taxes paid on Form 4720.
Verify no prohibited acts occurred under IRC Sections 4941 through 4945, including self-dealing, failure to distribute, excess business holdings, jeopardy investments, or improper taxable expenditures. Attach explanatory statements for any violations.
Minimum Investment Return and Distributions
Domestic non-operating foundations complete Part X. Sum average monthly fair market values of securities, cash, and other noncharitable-use assets. Subtract acquisition indebtedness and 1.5 percent for cash deemed held for charitable activities. Calculate five percent of the net value for the minimum investment return.
In Part XI, subtract taxes from the minimum investment return to determine the distributable amount representing the minimum required distribution under Section 4942. Report qualifying distributions in Part XII. Track undistributed income in Part XIII, applying current year distributions to current and prior year requirements. File Form 4720 if excise taxes on failure to distribute apply.
Required Attachments and Signature
Attach detailed contributor schedules as per the instructions in Part I. Include Part XV grant detail, Form 8949 or Schedule D for capital gains, charitable purpose statements if requested, and Form 4720 if excise taxes are assessed. Number pages consecutively.
Form 990-PF must be signed by an officer, director, trustee, or authorized official. If a paid preparer completes the return, they sign in the paid preparer section and provide their PTIN. Any authorized tax return preparer with a valid PTIN is eligible to sign. Ensure that all required entries are complete and that amounts are expressed in whole dollars.
Form Limitations and Filing
Form 990-PF does not allow federal income tax credits. Only the IRC Section 4940(e) deduction reduces the two percent excise tax if distribution thresholds are met. Foreign foundations with U.S. source income are subject to Section 4940(a) tax regardless of incorporation location.
Form 990-PF for calendar year 2018 is due May 15, 2019. Fiscal year filers must file by the 15th day of the 5th month after the end of the year. Request a six-month extension on Form 8868 by the original due date. Consult the IRS Where to File page for the correct mailing address.
Ten-Step Filing Process
Step 1:
Verify the organization's status as either a Section 501(c)(3) exempt foundation, a Section 4947(a)(1) trust, or a taxable foundation. All domestic foundations generally must file.
Step 2:
Gather investment income documentation, including Forms 1099-INT, 1099-DIV, 1099-B, rental records, and annuity statements, organized by the IRC Section 4940(c)(2) categories.
Step 3:
Document charitable distributions, distinguishing qualifying from nonqualifying distributions. Prepare grantee information for Part XV.
Step 4:
Complete Part I, line 1 for contributions. Verify Part I, line 2, if contributor schedules are not required. Prepare contributor details per instructions.
Step 5:
Calculate excise tax in Part VI using a two percent standard rate or one percent if Section 4940(e) qualified—complete Part V for the reduced rate qualification.
Step 6:
Report assets and liabilities in Part II. Answer Part VII-A, line 7, regarding the $5,000 threshold. Complete column (c) fair market values if required. Reconcile with Part III.
Step 7:
Report officer, director, trustee, and key employee compensation in Part VIII. Disclose disqualified person transactions. Document self-dealing compliance.
Step 8:
Calculate minimum investment return in Part X using average monthly fair market values minus acquisition indebtedness and a 1.5 percent cash deduction. Determine the distributable amount in Part XI.
Step 9:
Report qualifying distributions in Part XII. Track undistributed income in Part XIII. Apply distributions to current and prior requirements. File Form 4720 if needed.
Step 10:
Verify compliance with IRC Sections 4941-4945. Attach contributor schedules, Part XV grants, capital gains forms, and Form 4720 if applicable. Have the author sign and include the preparer's surety with PTIN. File by May 15, 2019, or request an extension.
This checklist helps ensure that the Form 990 is filled out correctly, following the rules for excise tax calculations, requirements, and private foundation limits as outlined in tax laws.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
