What IRS Form 990-T (2017) Is For

Form 990-T (2017) is used by tax-exempt organizations to report unrelated business income tax (UBIT) and determine their tax liability on income from activities not substantially related to their exempt purpose (IRS Instructions for Form 990-T (2017)). Filing is required if gross unrelated business income is $1,000 or more. This applies to section 501(a) exempt organizations, section 529 qualified tuition programs, and trustees of IRAs, HSAs, and other tax-advantaged accounts.

When You’d Use Form 990-T for 2017 (Late or Amended Filing)

You would file a late or amended 2017 Form 990-T if you received an IRS notice for non-filing, discovered unreported unrelated business income, or needed to correct an original submission. Many late filings occur when organizations first overlook UBIT obligations and later get IRS requests. For refunds, claims had to be made within three years of the original May 15, 2018 due date or two years after payment. By now, most refund windows for 2017 have closed.

Key Rules Specific to 2017

• Blended corporate tax rates: Fiscal year filers spanning Dec. 31, 2017, must use blended rates—part graduated rates, part new 21% flat rate.
  
  
• Corporate AMT still applies: The alternative minimum tax remained in force for 2017 returns.
  
  
• Late penalty increase: The minimum penalty for returns filed more than 60 days late rose to $210.
  
  
• No siloing requirement: Pre-2018 rules allowed aggregation of all unrelated business income; post-TCJA siloing rules didn’t apply yet.
  
  
• NOL rules: Losses could be carried back two years and forward 20 years under pre-TCJA law.
  
  

Step-by-Step (High Level)

1. Gather records: Use Form 4506-T to request IRS transcripts or access online business tax accounts to confirm filing history.
   
   
2. Use the 2017 form: Download from IRS.gov (prior year forms section). Do not use current forms.
   
   
3. Attach schedules: Include required attachments such as Schedule A (Cost of Goods Sold), Schedule E (Debt-Financed Income), or others depending on activities.
   
   
4. Mail return: Send to IRS Service Center, Ogden, UT 84201-0027, or use approved private delivery services.
   
   
5. Keep copies: Retain full copies of filed returns and supporting documents for compliance and future reference.
   
   

Common Mistakes and How to Avoid Them

• Wrong form year: Using current forms leads to incorrect tax rates and line mismatches.
  
  
• Blended rate errors: Fiscal year filers must compute tax using both old graduated rates and the new 21% rate.
  
  
• Incomplete gross receipts reporting: Report all gross receipts minus cost of goods sold; don’t net against expenses.
  
  
• Missing schedules: File required schedules even if gross income is modest; they establish valid expense allocation.
  
  
• NOL misapplication: Apply pre-2018 carryback/carryforward rules, not post-TCJA limitations.
  
  
• Forgetting AMT: Alternative minimum tax calculations were still in effect for 2017.
  
  

What Happens After You File

The IRS typically processes Form 990-T in 6–8 weeks, though late or amended returns may take longer. Expect notices about balances due, penalties, and interest back to the original due date. If you owe and can’t pay in full, you may request an installment agreement using Form 9465. Refunds are processed if claims fall within statutory timeframes. If you disagree with IRS adjustments, you may appeal through informal discussions or the IRS Appeals Office.

FAQs

Can I still file a 2017 Form 990-T in 2025?

Yes, you can file a delinquent return at any time since there’s no filing cutoff. However, penalties and interest continue accruing, and refund claims for overpaid tax are generally barred since the statute of limitations has expired. Filing late still reduces compliance risks and prevents further IRS enforcement.

How do I calculate penalties for late filing?

The penalty is 5% of unpaid tax for each month the return is late, up to 25% of the balance due. For returns more than 60 days late, the minimum penalty is $210 or the tax due—whichever is less. Interest also accrues daily from the original 2018 due date until payment is complete.

Do I need to file state returns too?

Possibly. Many states impose their own unrelated business income tax, often based on federal UBIT calculations. If you amend or file late federally, you may also need to amend or file with your state. Requirements vary, so always check with your state tax authority to avoid penalties or registration issues.

What if I discover I should have filed for multiple years?

File each year separately using the proper year’s form and instructions. The IRS calculates penalties and interest per year. Consider voluntary disclosure or reasonable cause relief to reduce penalties. Filing multiple missing years also helps protect your organization’s tax-exempt status from automatic revocation.

Can I get transcripts for 2017 if I never filed?

Yes. File Form 4506-T to request a “verification of non-filing” letter. This confirms no return was recorded for 2017. You can also request account transcripts to see whether the IRS has created a substitute for return (SFR), which they sometimes prepare when no return is filed.

How do I handle NOLs from 2017?

Net operating losses from 2017 can be carried back two years (2015–2016) or forward up to 20 years under pre-TCJA rules. You may aggregate UBIT activities without siloing. If carried forward, these losses can reduce unrelated business income in subsequent years until fully used.

What if my organization dissolved after 2017?

Even dissolved entities must file a final Form 990-T if they had unrelated business income. Mark “final return” on the 2017 filing. Also, complete proper dissolution steps under state law and notify the IRS. Failure to do so can leave former officers liable for penalties or outstanding taxes.