Form 990-T (2014): Exempt Organization Tax Return
Checklist
Tax-exempt organizations use Form 990-T to report unrelated business taxable income for the
2014 taxable year. This return applies even when an organization otherwise maintains tax-exempt status under the Internal Revenue Code and files other nonprofit tax returns.
The form ensures that income generated outside an organization’s exempt purpose is properly reported and taxed. Filing Form 990-T is required when gross unrelated business income meets the statutory filing threshold for the year.
What Form 990-T Is Used For
Form 990-T reports unrelated business income earned by organizations exempt under Section
501(a), including certain trusts and retirement accounts. It calculates federal income tax owed on that income separately from exempt function revenue.
This return is part of the Form 990 Series but differs from IRS Forms 990, 990-EZ, 990-PF, and
990-N. Filing Form 990-T does not replace the requirement to file other applicable information returns.
Who Must File Form 990-T for 2014
Tax-exempt organizations must file Form 990-T if they earned $1,000 or more in gross unrelated business income during the 2014 tax year. The requirement applies regardless of whether the organization had an overall net income.
Entities subject to filing include nonprofit organizations, nonexempt charitable trusts, certain retirement accounts, and private foundations with unrelated business activities. Failure to file when required can result in penalties and interest.
Filing Deadlines and Extension Rules
Filing deadlines for Form 990-T depend on the organization’s entity type and taxable year.
Trusts file by the fifteenth day of the fourth month following the end of the tax year.
All other exempt organizations must file by the fifteenth day of the fifth month after the fiscal year ends. An automatic extension may be requested using Form 8868 if submitted by the original due date.
Step-by-Step Filing Process
Step 1: Confirm Filing Requirement
Determine whether the organization earned at least $1,000 in gross unrelated business income during 2014. Ensure the proper separation of exempt income and unrelated income by carefully reviewing accounting records.
Step 2: Gather Income Documentation
Collect Forms 1099-MISC, Schedule K-1, W-2 records, and internal accounting reports supporting unrelated business activities. Verify that records clearly distinguish unrelated income from exempt purpose revenue.
Step 3: Calculate Unrelated Business Taxable Income
Compute unrelated business taxable income by subtracting allowable deductions from gross unrelated income. Follow the 2014 Form 990-T instructions precisely when applying deduction limitations and exclusions.
Step 4: Apply Required Income Modifications
Complete income modifications required under Section 512(b), including adjustments for interest, rents, royalties, dividends, and capital gains. Enter amounts in the correct columns using IRS-prescribed ordering rules.
Step 5: Apply Net Operating Loss Rules
Apply net operating loss carrybacks or carryforwards only if permitted under Internal Revenue
Code Section 172. Ensure loss periods and limitations comply with 2014 Form 990-T instructions.
Step 6: Report Multiple Unrelated Activities
Prepare separate schedule. A calculation when the organization operates more than one unrelated trade or business. Each activity must be reported independently, along with its computation of cost of goods sold.
Step 7: Calculate Tax Liability
Use the corporate tax rate table provided in the 2014 Form 990-T instructions to calculate federal tax liability. Do not apply individual or prior-year tax rates.
Step 8: Review Alternative Minimum Tax
Attach Form 4626 if the organization is required to compute the tentative minimum tax. Confirm whether the organization qualifies for any applicable small corporation exemptions.
Step 9: Complete Signature Requirements
An authorized officer or fiduciary must sign and date Form 990-T. The signer must include their printed name, official title, and a valid daytime telephone number.
- Schedule A cost report: This schedule reports the cost of goods sold for each
- Income modification schedules: Certain income types require additional schedules to
- Alternative minimum tax documentation: Form 4626 must be attached when required
- Using incorrect IRS forms: Some organizations mistakenly use individual or business
- Missing entity-specific deadlines: Trusts and nonprofit corporations follow different
- Failing to separate income types: Mixing exempt function income with unrelated
- Omitting required schedules: Missing schedules frequently trigger IRS
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Assemble and File the Return
Assemble all required schedules, attachments, and supporting documentation before filing. File the complete return package by mail or approved electronic method, if applicable.
Required Attachments and Supporting Schedules unrelated business activity. It must be completed separately for each activity exceeding the filing threshold. support required adjustments. These schedules ensure compliance with Internal
Revenue Service reporting rules. to compute the tentative minimum tax. Omission may result in processing delays or correspondence.
Common Filing Errors to Avoid tax forms instead of Form 990-T. Only forms designated for exempt organizations are permitted. filing deadlines. Applying the wrong deadline often results in avoidable penalties. business income creates reporting errors. Proper accounting separation is required throughout the year. correspondence. Incomplete filings delay processing and may increase compliance risk.
Recordkeeping and Compliance Considerations
Organizations must retain Form 990-T filings and supporting documentation as part of their permanent tax records. Records may be reviewed during audits or compliance reviews.
Maintaining accurate financial records promotes compliance with federal tax obligations and protects the organization’s tax-exempt status over time.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
