Tax990 Knowledge Base

Is a charitable trust require to pay the excise tax?

A charitable trust is a type of trust that a small group of people runs to serve the community.

According to the IRS, a charitable trust is treated as a private foundation. Therefore, it is considered tax-exempt unless it meets the requirements for one of the exclusions that classify it as a public charity, i.e., an excise tax will be imposed on a charitable trust if it detracts and fails to provide services for further charitable purposes.