Tax990 Knowledge Base

What is the purpose of Form 990-T?

The purpose of Form 990-T is to calculate and report an organization's unrelated business income. If your organization has a gross income of $1000 or more from unrelated business income for the tax year, you must file Form 990-T.

For example, the investment income from debt-financed property unrelated to the organization's charitable purpose and certain rents (and related expenses) is treated as an unrelated trade or business income and should be reported on Form 990-T.

Form 990-T is also used to

• Report proxy tax liability
• Claim a refund of income tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT) on undistributed long-term capital gain
• Request credit for certain federal excise taxes paid or for small employer health insurance premiums paid
• Report unrelated business income tax on reinsurance entities