What IRS Form 990-BL (2021) Is For

IRS Form 990-BL (2021) is a specialized annual return used by Black Lung Benefit Trusts created by coal companies to comply with the Internal Revenue Code. These trusts are established under Section 501(c)(21) to fund benefits, medical care, and compensation for miners affected by pneumoconiosis, commonly known as black lung disease. The form reports financial details such as income, trust fund revenue, expenditures, and excise taxes imposed or paid during the tax year.

This filing requirement helps ensure that funds are used exclusively for purposes permitted under the Black Lung Benefits Act and the federal Black Lung Program. It allows the Internal Revenue Service to verify that the trust continues to operate according to federal tax-exempt laws and that the money supports eligible miners and their family members who are disabled or deceased due to coal mine employment. Filing this form annually demonstrates compliance, supports transparency, and preserves the trust’s tax-exempt status.

When You’d Use IRS Form 990-BL (2021)

If your organization administers or oversees a Black Lung Benefit Trust and needs to report its activities for the 2021 tax year, you would file IRS Form 990-BL (2021).

• Late or prior-year filing: You would file when catching up on a missed or overdue return for the 2021 tax year to avoid automatic revocation of tax-exempt status.
  
  
• Annual compliance filing: You must file each year to document trust fund revenue, expenditures, and excise taxes reported to the Internal Revenue Service.
  
  
• Amended or corrected filing: You should file when previous submissions contained errors or inaccurate information that require correction in the official record.
  
  
• Trust termination or reorganization: You must file when a Black Lung Trust is dissolved, merged, or reorganized under Department of Labor or IRS supervision to ensure accurate reporting for the final year of operation.

Key Rules or Details for 2021

Before filing IRS Form 990-BL (2021), it is essential to understand the primary rules and requirements that applied during the 2021 tax year. These regulations ensure the filing is accurate, compliant, and consistent with the Internal Revenue Code and the Black Lung Benefits Act.

• Eligibility: Only Black Lung Benefit Trusts established under Section 501(c)(21) of the Internal Revenue Code are authorized to file this form.
  
  
• Filing deadline: The return is due by the fifteenth day of the fifth month after the end of the trust’s fiscal year, unless an extension is requested.
  
  
• Electronic filing: Most organizations must file electronically through an IRS-approved system; paper forms are not accepted.
  
  
• Trust fund use: All expenditures must directly support medical coverage, treatment, or compensation for eligible miners and their dependents affected by black lung disease.
  
  
• Excise tax reporting: Any excise tax collected or paid on coal production must be appropriately documented in the trust’s financial report.
  
  
• Record retention: Trusts should retain all records and supporting documentation for at least three years after filing to demonstrate compliance if reviewed by the Internal Revenue Service.

Step-by-Step (High Level)

Filing IRS Form 990-BL (2021) involves gathering accurate information and following a structured process to meet IRS reporting standards. Each step ensures the black lung trust is transparent and accountable for its financial activities during the tax year.

• Gather required information: Collect the trust’s Employer Identification Number (EIN), legal name, fiscal year dates, address, and details of responsible officers or trustees.
  
  
• Compile financial details: Prepare accurate figures for gross receipts, income, trust fund revenue, and all expenditures made on medical coverage, compensation, or administrative costs.
  
  
• Verify beneficiary eligibility: Confirm that all individuals receiving payments or benefits meet the eligibility criteria under the Black Lung Benefits Act and the federal Black Lung Program.
  
  
• Prepare the form: Complete each section carefully, ensuring that totals reconcile with the trust’s financial records and supporting evidence.
  
  
• File electronically: Submit the return through an IRS-approved e-file provider and ensure the filing confirmation is received and securely stored.
  
  
• Maintain documentation: If the agency requests additional information, keep all supporting records, receipts, and IRS acknowledgments for at least three years.

Common Mistakes and How to Avoid Them

Many organizations make errors when filing IRS Form 990-BL (2021), which can lead to delays, penalties, or additional correspondence from the Internal Revenue Service. Attention to these common issues can help maintain compliance and ensure smooth processing.

• Filing the wrong year’s form: Always confirm that you are using the correct prior-year form before submission to prevent rejection by the IRS.
  
  
• Omitting financial details: Ensure that all income, expenditures, excise taxes, and trust fund revenues are accurately reported to avoid triggering an IRS review.
  
  
• Incorrect EIN or trust name: Verify the Employer Identification Number and legal name against the IRS determination letter before filing to maintain accurate records.
  
  
• Failure to e-file: Submit the return electronically through an IRS-approved system, as paper forms are no longer accepted for processing.
  
  
• Lack of documentation: Keep all financial records, receipts, and trust fund evidence organized in case the IRS requests supporting materials for verification.
  
  
• Ignoring error notices: Respond promptly to any electronic rejection or error notice from the IRS to correct issues before penalties or revocation occur.

What Happens After You File

Once you submit IRS Form 990-BL (2021), the Internal Revenue Service reviews the filing electronically to confirm accuracy and completeness. Accepted returns are processed within several weeks and included in the IRS Tax Exempt Organization Search database. If errors or omissions are detected, the filer will receive a notification with instructions for correction.

Since this form is an informational return, it does not involve tax payments, refunds, or direct liabilities. Instead, it confirms that the black lung benefit trust continues to operate under the Internal Revenue Code and uses its funds properly for eligible miners, dependents, and family members. 

FAQs

What is the Black Lung Benefits Program?

The Black Lung Benefits Program provides monthly payments and medical coverage to coal miners who are totally disabled by black lung disease and to their eligible dependents or survivors. 

What are Black Lung Benefit Trusts?

Black lung benefit trusts are tax-exempt entities established under Section 501(c)(21) of the Internal Revenue Code to pay benefits and medical expenses to miners with black lung disease. 

Can I file forms from the prior year, like IRS Form 990-BL (2021)?

You may file prior-year forms, such as IRS Form 990-BL (2021), if a filing was missed or delayed, provided there is reasonable cause for late submission. Filing late helps prevent automatic revocation of the trust’s tax-exempt status and maintains compliance with IRS regulations.

Are black lung benefits considered workers' compensation?

Yes, Black Lung benefits are treated as a form of workers' compensation under federal law because they provide income and medical coverage for coal miners disabled by job-related respiratory diseases.