What IRS Form 990-BL (2017) Is For

IRS Form 990-BL (2017) is the specialized tax return required for Black Lung Benefit Trusts. These trusts were created to provide financial and medical assistance to coal miners diagnosed with coal workers’ pneumoconiosis, also known as black lung disease. The form ensures compliance under the Internal Revenue Code and records how trusts fulfill their legal obligations to pay benefits and cover related administrative expenses.

The Internal Revenue Service uses this return to verify that trusts established under the Black Lung Benefits Act properly manage funds collected through excise taxes on coal production. It documents the benefit payments to eligible miners and their family members, the administrative costs incurred, and other related financial activities.

When You’d Use IRS Form 990-BL (2017)

You would file IRS Form 990-BL (2017) when operating a Black Lung Benefit Trust or if you are responsible for reporting excise tax information and payments related to coal mine employment.

• Operating a Black Lung Benefit Trust: The form must be filed when the trust provides medical and disability benefits to eligible miners or family members under the Black Lung Benefits Act.
• Reporting Excise Taxes: File this form to report the initial excise tax return or other information and initial excise tax related to coal produced from surface or underground mines.
• Maintaining Exempt Status: Use the form to demonstrate compliance and preserve the trust’s qualification under the Internal Revenue Code, ensuring it can continue paying benefits under federal workers' compensation programs.
• Addressing Prior Years: If prior years were missed or require corrections, filing Form 990-BL allows trusts to remain compliant with IRS requirements for benefit trusts and certain related persons.
• Managing Related Parties: Trusts must disclose any financial dealings involving certain related parties or relationships that impact the payment of black lung benefits.

Key Rules or Details for 2017

The 2017 version of IRS Form 990-BL followed specific federal law guidelines to ensure transparency in how Black Lung Benefit Trusts handled funds and reported excise taxes.

1. Eligibility: The form applies to trusts established by coal mine operators under the Internal Revenue Code to pay benefits for miners diagnosed with coal workers’ pneumoconiosis or other lung diseases resulting from coal dust exposure.
2. Filing Requirements: Trusts were required to file annually with the Internal Revenue Service to report benefit payments, administrative expenses, and excise taxes related to coal mine employment.
3. Excise Tax Rates: The reported excise tax rates were based on the amount of coal produced, with separate rates for coal extracted from surface and underground mines under federal coal tax regulations.
4. Covered Benefits: The form accounted for medical coverage, compensation, and survivor benefits provided in cases of a miner’s death caused by black lung disease.
5. Related Parties: The return also required full disclosure of any financial transactions involving certain associated persons or parties connected to the trust or mine operator.

Step-by-Step (High Level)

Filing IRS Form 990-BL (2017) involved several structured steps to ensure that each trust complied with federal reporting requirements and accurately recorded all payments and taxes.

1. Gather Information: Collect the employer identification number (EIN), trust name, address, district office, and details about benefits paid to miners and family members.
2. Verify Eligibility: Confirm that the trust qualifies as a Black Lung Disability Trust under the Internal Revenue Code and pays benefits as required by the federal Black Lung Program.
3. Calculate Payments: Document all benefit payments, medical benefits, and other expenses to eligible miners and related family members during the tax year.
4. Report Excise Taxes: Include excise tax data for coal produced and sold, showing the amount subject to the federal coal excise tax and any initial taxes owed.
5. Include Related Parties: Report any transactions with certain related persons, related parties, or affiliated organizations that could affect the trust’s financial activities.
6. Submit the Return: File the completed return electronically or by mail, following IRS instructions for Form 990, and retain a copy in the trust’s records for future reference.

Common Mistakes and How to Avoid Them

Completing IRS Form 990-BL (2017) errors can delay processing or lead to compliance notices from the Internal Revenue Service. Awareness of common filing issues can help trusts maintain accuracy and avoid future complications.

• Incorrect EIN or Trust Details: Submitting the wrong EIN, name, or address can result in the IRS rejecting the return; verify all identifying information before filing.
• Failing to Include Related Parties: Omitting certain related parties or related persons from the form may cause the return to be considered incomplete; always disclose all required relationships.
• Underreporting Benefit Payments: Reporting less than the total benefit payments or administrative expenses can raise red flags; ensure the amounts match the trust’s accounting records.
• Ignoring Prior Year Adjustments: Leaving uncorrected errors from prior years can lead to inconsistencies; make necessary updates when preparing the current year’s filing.
• Filing Late: Missing the filing deadline may trigger IRS notices or penalties; submit the form on time and confirm acceptance.
• Incorrect Excise Tax Reporting: Miscalculating excise tax rates or excluding coal produced from certain mines may cause discrepancies; use accurate production data and verify tax calculations.

What Happens After You File

After submitting IRS Form 990-BL (2017), the Internal Revenue Service reviews the return to confirm compliance with the Internal Revenue Code. Once accepted, the filing becomes part of the public record for Black Lung Benefit Trusts. The IRS will issue a notice if any clarification or additional documentation is required. 

Filing correctly ensures that the trust remains in good standing. It continues to pay benefits to eligible miners, their survivors, and family members covered under the federal Black Lung Program and related workers' compensation laws. 

FAQs

What are Black Lung Benefit Trusts?

Black Lung Benefit Trusts are funds created by coal mine operators to pay benefits, medical coverage, and compensation to miners who develop pneumoconiosis from such employment. These trusts ensure eligible miners and their families receive medical and financial support as required under the Black Lung Benefits Act.

What excise taxes are reported on Form 990-BL (2017)?

The form includes excise taxes collected from coal produced by surface and underground mines. These taxes fund medical benefits, compensation, and administrative expenses under the federal coal program that supports workers affected by black lung disease.

Who are the certain related persons under this filing?

Certain related persons or parties may include individuals or entities connected to the mine operator or trust fund. The Internal Revenue Service requires these relationships to be disclosed on the return for Black Lung Benefit Trusts to ensure transparency and prevent conflicts of interest.

How does this relate to coal mine workers' compensation?

IRS Form 990-BL (2017) supports compliance with workers' compensation programs for coal miners suffering from black lung disease. The Social Security Administration and the Department of Labor coordinate benefit payments under the Safety Act to ensure proper compensation and medical assistance for affected workers and their families.