Definition and Meaning
Form 990-T is a tax document used by tax-exempt organizations to report unrelated business income to the Internal Revenue Service (IRS). This income generally encompasses activities not directly related to the primary purpose of the organization. Understanding Form 990-T is crucial for ensuring compliance and avoiding penalties. Typically, this form is required when gross income from unrelated business activities exceeds $1,000. Organizations such as churches, charities, and other non-profit entities often need to complete this form to declare taxable income derived from activities such as advertising or facility rentals. The form was made fillable in 2014, meaning users could directly input data electronically, improving ease of use and accuracy.
How to Use the Form 990-T Fillable 2014
Using the fillable version of Form 990-T from 2014 involves several steps. You begin by downloading and opening the fillable PDF in a compatible PDF editing software like Adobe Reader or via web-based platforms like DocHub. This format allows you to enter text directly into the relevant fields. Ensure all required fields are filled out, such as the organization's name, employer identification number (EIN), and income details. In addition to the standard fields, you can use the interactive functions to enter precise financial data, perform calculations, and ensure each part of the form is completed correctly. Once filled, the form can be saved, printed, or directly submitted if electronic filing is allowed.
Steps to Complete the Form 990-T Fillable 2014
- Obtain the Form: Download the 2014 fillable version from the IRS website or use platforms like DocHub for a seamless digital experience.
- Provide Identification Information: Fill in basic organization details such as the name, EIN, and fiscal year.
- Unrelated Business Income: Accurately report any unrelated business taxable income, using schedules as necessary for itemized details.
- Deductions and Adjustments: Enter all applicable deductions and expense adjustments relevant to the unrelated business income.
- Compute Tax: Use the form's calculations section to determine the total tax due, after accounting for credits and prior payments.
- Sign and Date: Ensure an authorized party signs the form, providing an official verification of its accuracy.
- Submission: Depending on IRS provisions for the year, either mail or electronically submit the completed form.
Important Terms Related to Form 990-T
Understanding the terminology associated with Form 990-T is essential for correct form completion:
- Unrelated Business Income (UBI): Income from a trade or business not substantially related to the organization’s exempt purpose.
- EIN: Employer Identification Number used to identify the tax accounts of employers.
- Exempt Function Income: Income not subject to unrelated business income tax due to its connection with an organization’s exempt purpose.
Filing Deadlines and Important Dates
Form 990-T must be filed by the 15th day of the 5th month after the end of the organization’s accounting period. For example, if your fiscal year ends on December 31, the form is due by May 15 of the following year. Organizations failing to meet these deadlines may face penalties, underscoring the importance of timely submission.
IRS Guidelines
The IRS provides specific guidelines on filing Form 990-T, including instructions on calculating unrelated business taxable income, applying deductions, and claiming credits. Organizations should also stay informed about changes in the IRS's approach to unrelated business income, as these may affect reporting requirements. Compliance with IRS guidelines ensures legal adherence and minimizes the risk of audits or penalties.
Penalties for Non-Compliance
Failing to file Form 990-T or inaccurately reporting information can lead to significant penalties. These can include late filing fees, interest on unpaid taxes, and potential loss of the organization’s tax-exempt status. In severe cases, failure to comply with IRS regulations may lead to the revocation of tax-exempt status, making it crucial for organizations to fulfill filing obligations accurately.
Required Documents
When preparing to file Form 990-T, ensure you have the following documents:
- Financial statements detailing unrelated business income and expenses.
- Documentation supporting any deductions or adjustments claimed.
- Previous year’s Form 990-T if applicable, for reference.
- IRS notice of tax exemption to confirm organizational eligibility.
By gathering these documents in advance, organizations can streamline the form completion process, reducing errors and ensuring all necessary information is accurately reported.
