2023

Instructions for Form 4720

Return of Certain Excise Taxes Under Chapters 41 and 42 of the

Internal Revenue Code

(Sections 170(f)(10), 664(c)(2), 4911, 4912, 4941, 4942,

4943, 4944, 4945, 4955, 4958, 4959, 4960, 4965, 4966, 4967, and 4968)

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue 

Code unless otherwise noted.

Contents Page

General Instructions ............. 2

Purpose of Form ............... 2

Who Must File ................ 2

Where and How To File ........... 3

When To File ................. 4

Extension ................... 4

Name, Address, etc. ............ 4

Signature and Verification ......... 4

Attachments .................. 4

Organizations Organized or 

Created in a Foreign Country .... 4

Tax Payments ................. 5

Rounding Off to Whole Dollars ...... 5

Penalties and Interest ............ 5

Abatement ................... 5

Initial Tax Liability and Correction .... 5

Completing the Schedules ........ 6

Amended Return ............... 6

Specific Instructions for Page 1 ...... 6

Schedule A—Initial Taxes on 

Self-Dealing (Section 4941) ..... 8

Schedule B—Initial Tax on 

Undistributed Income (Section 

4942) ................... 9

Schedule C—Initial Tax on Excess 

Business Holdings (Section 

4943) ................... 9

Schedule D—Initial Taxes on 

Investments That Jeopardize 

Charitable Purpose (Section 

4944) .................. 12

Schedule E—Initial Taxes on 

Taxable Expenditures 

(Section 4945) ............ 13

Schedule F—Initial Taxes on 

Political Expenditures 

(Section 4955) ............ 13

Schedule G—Tax on Excess 

Lobbying Expenditures 

(Section 4911) ............ 14

Schedule H—Taxes on 

Disqualifying Lobbying 

Expenditures (Section 4912) ... 14

Schedule I—Initial Taxes on 

Excess Benefit Transactions 

(Section 4958) ............ 15

Schedule J—Taxes on Being a 

Party to Prohibited Tax Shelter 

Transactions (Section 4965) ... 16

Schedule K—Taxes on Taxable 

Distributions of Sponsoring 

Organizations Maintaining 

Donor Advised Funds 

(Section 4966) ............ 17

Contents Page

Schedule L—Taxes on Prohibited 

Benefits Distributed From 

Donor Advised Funds 

(Section 4967) ............ 18

Schedule M—Tax on Hospital 

Organization for Failure to 

Meet the Community Health 

Needs Assessment 

Requirements (Sections 4959 

and 501(r)(3)) ............. 19

Schedule N—Tax on Excess 

Executive Compensation 

(Section 4960) ............ 19

Schedule O—Excise Tax on Net 

Investment Income of Private 

Colleges and Universities 

(Section 4968) ............ 20

Paid Preparer ................ 21

Phone Help ................. 21

Photographs of Missing Children ... 21

How To Get Forms and 

Publications .............. 21

IRS e-Services Makes Taxes 

Easier .................. 21

Index ..................... 23

Future Developments

For the latest information about 

developments related to Form 4720 and 

its instructions, such as legislation 

enacted after they were published, go to 

IRS.gov/Form4720.

What’s New

Electronic filing for filers that are not 

private foundations. Under final 

regulations (T.D. 9972) issued in 

February 2023, filers of Form 4720 that 

are not private foundations are required 

to file Form 4720 electronically if they 

file 10 or more returns in the aggregate 

in a calendar year. The regulations are 

effective for returns required to be filed 

for tax years ending on or after 

December 31, 2023. See Where and 

How To File, for more information.

Reminders

Forms 4720 filed by private foundations 

are publicly disclosable. Don’t enter 

Social Security Numbers on these 

publicly disclosable returns.

Separate returns. A manager, 

self-dealer, disqualified person, donor, 

donor advisor, or related person who 

owes tax under Chapter 41 or 42, 

(including an entity manager under 

section 4965), may no longer report the 

tax on the Form 4720 filed by the 

organization. Each taxpayer must file a 

separate Form 4720.

Electronic filing for private foundations. Under Regulations section 

1.6033-2(a)(2)(ii)(J), private foundations 

are required to report such information 

as is required by Form 4720 as part of 

their information reporting requirement 

under section 6033. Therefore, private 

foundations reporting information 

required as to liability for tax imposed 

under Chapter 42 on the Form 4720 

(Schedules A-F, J, or N) must file this 

form electronically. Other filers of Form 

4720 may be required to file 

electronically as described in Where 

and How To File, later. See Regulations 

section 301.6011-12. Additionally, any 

other filer of Form 4720 who is not 

required to file electronically may also 

voluntarily use the electronic form.

Entity or person subject to tax filing 

Form 4720 with respect to more than 

one organization. Item B in the header 

area of Form 4720 is revised for use by 

any entity (other than the organization) 

or person who is required to file Form 

4720 to report and pay an excise tax 

under Chapters 41 or 42 of the Internal 

Revenue Code with respect to more 

than one organization. The information 

entered in Item B will allow IRS systems 

to accept and process multiple Form 

4720 filings under the same taxpayer 

number (Employer Identification 

Number or Social Security Number).

Explanations of corrective action 

taken. Instead of using Item B to collect 

information about corrections made (or 

not made) on taxable events, Form 4720 

is revised to request information about 

such corrections in each of Schedules 

A, B, C, D, E, F, or I. Now, for each 

transaction to which an initial tax applies 

under sections 4941, 4942, 4943, 4944, 

4945, 4955, or 4958, the organization or 

any other entity or person required to file 

Form 4720 to report one or more such 

Oct 3, 2023 Cat. No. 13023Z
transactions, must indicate whether a 

correction has been made (or not) on 

the Schedule where each transaction is 

reported.

General Instructions

Purpose of Form

Use Form 4720 to figure and pay the 

following.

• The initial taxes on private 

foundations, disqualified persons, or 

foundation managers under sections 

4941 through 4945 for self-dealing, 

failure to distribute income, excess 

business holdings, investments that 

jeopardize charitable purpose, and 

taxable expenditures (see instructions 

for Schedules A through E for 

definitions).

• The initial tax on certain supporting 

organizations and donor advised funds 

for excess business holdings under 

section 4943.

• The section 4911 tax on excess 

lobbying expenditures by public 

charities that have elected to be subject 

to section 501(h) regarding 

expenditures to influence legislation. 

(Private foundations and section 

4947(a) trusts aren't eligible to make this 

election).

• The section 4912 tax on disqualifying 

lobbying expenditures that result in loss 

of section 501(c)(3) tax-exempt status.

• The section 4955 tax imposed on any 

amount paid or incurred by a section 

501(c)(3) organization that participates 

or intervenes in any political campaign 

on behalf of, or in opposition to, any 

candidate for public office.

• The section 4958 initial taxes on 

disqualified persons and organization 

managers of section 501(c)(3) (except 

private foundations), section 501(c)(4), 

and section 501(c)(29) organizations 

that engage in excess benefit 

transactions.

• The section 4959 tax on the failure by 

a hospital organization to meet the 

community health needs assessment 

requirements under section 501(r)(3).

• The section 4960 taxes on excess 

tax-exempt organization executive 

compensation.

• The section 4965 taxes on prohibited 

tax shelter transactions.

• The section 4966 taxes on taxable 

distributions by sponsoring 

organizations maintaining donor 

advised funds.

• The section 4967 taxes on a donor, 

donor advisor, or related party, and a 

manager of a sponsor of a donor 

advised fund, relating to distributions 

that result in prohibited benefits from a 

donor advised fund.

• The section 4968 taxes on net 

investment income of certain private 

colleges and universities.

• The section 170(f)(10) tax on any 

premiums paid on a personal benefit 

contract in connection with a transfer to 

an organization or charitable remainder 

trust for which a charitable deduction 

isn't allowed to the transferor.

• The section 664(c)(2) tax on the 

unrelated business taxable income of a 

charitable remainder trust.

Who Must File

Organizations and Any Related 

Organization Subject to Tax 

Under Chapter 41 or 42

Organizations liable for excise tax under 

Chapter 41 or 42 should complete the 

schedule(s) described below, as 

applicable. Taxes owed by the 

organization are reported in Part I only.

The organization should not 

enter any amount(s) in Part II. 

Part II is used by persons and 

entities other than the organization to 

report and pay excise tax liability relating 

transactions or activities described in 

the applicable schedule.

Private foundations and section 

4947(a) trusts. Generally, Form 4720 

must be filed by all organizations, 

including foreign organizations, that 

answered “Yes,” to question 1b, 1d, 2b, 

3b, 4a, 4b, 5b, 6b, 7b, or 8 in Part VI-B of 

Form 990-PF; or “Yes,” to question 1b, 

1c, 3b, 4a, 4b, 5b, 6b, or 7 in Part VIII of 

Form 5227. (Schedules A through E).

Other organizations owing initial taxes on excess business holdings. 

Supporting organizations described in 

section 4943(f)(3) and donor advised 

funds described in section 4966(d)(2) 

that owe the tax reported on Schedule C 

(section 4943(a)). (Schedule C).

Organizations making political expenditures. All section 501(c)(3) 

organizations that make a political 

expenditure must file Form 4720 to 

report the liability and pay the tax 

(Schedule F). Organization managers 

may report any first-tier tax they owe on 

Schedule F of Form 4720. (See 

Schedule F instructions, later, for the 

definition of political expenditures.)

Public charities making excess lobbying expenditures. Public charities 

that made the election under section 

501(h) and owe tax on excess lobbying 

expenditures as figured on Schedule C 

CAUTION

!

(Form 990), Part II-A, must file Form 

4720 to report the liability and pay the 

tax (Schedule G). Certain organizations 

whose section 501(c)(3) status is 

revoked because of excess lobbying 

activities (and possibly their managers) 

are subject to a 5% excise tax on their 

lobbying expenditures (Schedule H).

Charitable organizations that engage in excess benefit transactions. 

Form 4720 must be filed by any 

organization that answered “Yes” to 

question 25a in Part V of Form 990 or 

that otherwise engaged in an excess 

benefit transaction described in section 

4958. (Schedule I).

Charitable organizations that make 

certain premium payments on personal benefit contracts. Form 4720 

must be filed by any organization 

described in section 170(c) or section 

664(d) that answered “Yes,” to question 

7f in Part V of Form 990, question 6b in 

Part VI-B of Form 990-PF, question 6b in 

Part VIII of Form 5227, or that otherwise 

paid premiums on a personal benefit 

contract in connection with a transfer to 

an organization for which a charitable 

deduction was not allowed to the 

transferor (Part I, line 8).

Certain tax-exempt entities that are a 

party to a prohibited tax shelter 

transaction (PTST). Certain 

tax-exempt entities must file Form 4720 

to report the liability and pay the tax due 

under section 4965(a)(1) (Schedule J). 

This requirement applies to entities 

described in sections 501(c), 501(d), or 

170(c) (other than the United States) or 

an Indian tribal government (within the 

meaning of section 7701(a)(40)).

Any entity described in section 

4965(c) that is a party to a PTST 

must file Form 8886-T.

Sponsoring organizations maintaining donor advised funds. All section 

170(c) organizations (excluding private 

foundations and government 

organizations referred to in sections 

170(c)(1) and 170(c)(2)(A)) that 

maintain one or more donor advised 

funds must file Form 4720 to report the 

liability and pay the tax owed on any 

taxable distributions under section 4966 

(Schedule K). In addition, sponsoring 

organizations that have made a 

distribution resulting in a prohibited 

benefit to a donor, donor advisor, or 

related person must file Form 4720 to 

report the distribution (Schedule L).

Charitable remainder trusts. All 

charitable remainder trusts described in 

section 664 that have unrelated 

TIP

-2- Instructions for Form 4720 (2023)
business taxable income for the tax year 

must file Form 4720 to report the liability 

and pay the tax due (Part I, line 11). 

Unrelated business taxable income is 

figured under section 512 and is 

determined as if Part III of subchapter F 

applies to such trusts. Use Form 990-T 

to compute unrelated business taxable 

income. The charitable remainder trust 

should not submit Form 990-T for 

processing as a return. Instead, attach a 

copy of the completed Form 990-T and 

file it with Form 4720.

Hospital organizations failing to 

meet the community health needs 

assessment requirements (Sections 

501(r)(3), 4959). An excise tax is 

imposed on the failure by a hospital 

organization to meet the community 

health needs assessment (“CHNA”) 

requirements of section 501(r)(3) 

(Schedule M).

Certain taxpayers that pay excess 

executive compensation. An 

applicable tax-exempt organization 

(ATEO) that pays to any covered 

employee more than $1 million in 

remuneration or pays an excess 

parachute payment during the year must 

file Form 4720 to report the liability and 

pay the excise tax imposed by section 

4960. (Schedule N). An ATEO includes 

section 501(a) exempt organizations, 

section 527 political organizations, 

section 521 farmers’ cooperatives, and 

government entities that have income 

excluded under section 115(1). If 

remuneration from a related 

organization is included to determine 

the tax imposed by section 4960, the 

related organization must file a separate 

Form 4720 to report its share of liability 

for the tax on Schedule N. See the 

instructions for Schedule N, later, for the 

definition of related organization for 

purposes of the excise tax under section 

4960.

A governmental entity that is not 

exempt from tax under section 

501(a) and does not exclude 

income under section 115(1) is not an 

ATEO for purposes of section 4960.

Certain private colleges and universities subject to the excise tax on 

net investment income (section 

4968). An applicable educational 

institution must file Form 4720 to report 

the liability and pay the excise tax 

imposed by section 4968. (Schedule O) 

An applicable educational institution is a 

private college or university that:

• Answered “Yes” to line 16 in Part V of 

Form 990 or that otherwise is a private 

college or university that is an eligible 

TIP

educational institution, as defined in 

section 25A(f)(2);

• Had at least 500 students during the 

preceding tax year, with more than 50% 

of those students located in the United 

States; and

• Had an aggregate fair market value, 

at the end of the preceding tax year, of 

assets not used directly in the carrying 

out of the organization’s exempt 

purpose, held by the organization and 

related organizations, of at least 

$500,000 per student.

Other Filers

Managers, self-dealers, disqualified 

persons, donors, donor advisors, 

and related persons. A manager, 

self-dealer, disqualified person, donor, 

donor advisor, or related person who 

owes tax under Chapter 41 or 42, 

including an entity manager under 

section 4965, must file a separate Form 

4720 showing the tax owed. The Form 

4720 filed by a manager, self-dealer, 

disqualified person, donor, donor 

advisor, or related person should 

include the name of the organization in 

Part II. If applicable, a separate Form 

4720 should be filed for each 

organization for which the manager, 

self-dealer, disqualified person, donor, 

donor advisor, or related person owes 

tax. A person filing Form 4720 should 

enter their tax year at the top of Form 

4720. Enter the name, address, and 

taxpayer identification number of the 

manager, self-dealer, disqualified 

person, donor, donor advisor, or related 

person in the address area at the top of 

Form 4720. Enter the name of the 

organization in the name and address 

area in Part II. Each manager, 

self-dealer, disqualified person, donor, 

donor advisor, or related person should 

complete all the information the form 

requires, including the schedule(s) 

applicable to each tax shown on Part II, 

to the extent possible, and as 

applicable.

Managers of tax favored 

retirement plans, individual 

retirement arrangements, and 

savings arrangements described in 

sections 401(a), 403(a), 403(b), 529, 

457(b), 408(a), 220(d), 408(b), 530, or 

223(d) must report and pay tax due 

under section 4965(a)(2) on Form 5330.

Where and How To File

Electronic filing. All persons required 

to file can file Form 4720 electronically. 

For general information about electronic 

filing, visit IRS.gov/Efile, and see Pub. 

4163, Modernized e-file Information for 

TIP

Authorized IRS e-File Providers for 

Business Returns.

Mandatory electronic filing for private foundations. All private 

foundations reporting information 

required as to liability for tax imposed 

under Chapter 42 on the Form 4720 

(Schedules A-F, J, or N) must file this 

form electronically, regardless of the 

number of other returns the private 

foundation must file during the calendar 

year. Form 4720 returns filed on paper 

by organizations required to file 

electronically will not be accepted or 

processed.

Mandatory electronic filing for other 

than private foundations. Filers that 

are not private foundations required to 

file at least 10 returns of any type during 

the calendar year ending with or within 

the tax year must file their returns 

electronically. “Returns” for purposes of 

these instructions include information 

returns (for example, Forms W-2 and 

Forms 1099), income tax returns, 

employment tax returns (including 

quarterly Forms 941, Employer’s 

Quarterly Federal Tax Return), and 

excise returns. The failure to file a return 

electronically when required is deemed 

a failure to file the return even if the filer 

submits a paper return.

On a year-by-year and form-by-form 

basis, the IRS may waive, in cases of 

undue hardship, the requirement that 

filers other than private foundations that 

file 10 or more returns file electronically. 

In certain circumstances, a filer may be 

administratively exempt from the 

requirement to file electronically. The 

filer should keep documentation 

supporting their undue hardship or other 

applicable reason for not filing 

electronically in the filer’s records. For 

more information about mandatory 

electronic filing based on the 10–return 

threshold, waivers, and exemptions, see 

Regulations section 301.6011–12.

Paper filing. For filers submitting paper 

returns:

Instructions for Form 4720 (2023) -3-
IF you are 

located in ...

THEN use the 

following 

address ...

the United States Department of the 

Treasury

Internal Revenue 

Service Center

Ogden, UT 

84201-0027

a foreign country or

a U.S. territory

Internal Revenue 

Service Center

P.O. Box 409101

Ogden, UT 84409

Private delivery services. You can 

use certain private delivery services 

(PDS) designated by the IRS to meet 

the “timely mailing as timely filing/

paying” rule for tax returns and 

payments. Go to IRS.gov/PDS for the 

current list of designated services.

The private delivery service can tell 

you how to get written proof of the 

mailing date.

Private delivery services can't deliver 

items to P.O. boxes. You must use the 

U.S. Postal Service to mail any item to 

an IRS P.O. box address. Private 

delivery services deliver to:

Internal Revenue Service

1973 Rulon White Blvd.

Ogden, UT 84201 

When To File

Part I taxes on the organization. File 

Form 4720 by the due date (not 

including extensions) for filing the 

organization's Form 990-PF, Form 990, 

Form 990-EZ, or Form 5227. If you 

aren't required to file any of these forms, 

file Form 4720 by the 15th day of the 5th 

month after the organization's 

accounting period ends.

If the regular due date falls on a 

Saturday, Sunday, or legal holiday, file 

by the next business day.

Affiliated group member. See 

section 4911(f) and the instructions for 

Schedule G, later, for definition of 

“affiliated group.” For the members of an 

affiliated group of organizations that 

have different tax years, and who are 

filing Form 4720 to report tax under 

section 4911, the tax year of the 

affiliated group is the calendar year, 

unless all members of the group elect 

under Regulations section 56.4911-7(e)

(5) to make a member's year the group's 

tax year.

Part II taxes on managers, self-dealers, disqualified persons, donors, 

donor advisors, or related persons. 

Each manager, self-dealer, disqualified 

person, donor, donor advisor, or related 

person, must file Form 4720 by the 15th 

day of the 5th month after the end of 

their tax year.

If the regular due date falls on a 

Saturday, Sunday, or legal holiday, file 

by the next business day.

Extension

Use Form 8868, Application for 

Automatic Extension of Time To File an 

Exempt Organization Return or Excise 

Taxes Related to Employee Benefit 

Plans, to request an automatic 

extension of time to file. The automatic 

extension will be granted if Form 8868 is 

properly completed, filed, and any 

balance due shown on Form 4720 is 

paid by the due date for Form 4720.

Name, Address, etc.

For an organization filing its own Form 

4720, the name, address, and employer 

identification number of the organization 

should be the same as shown on Form 

990-PF, Form 5227, Form 990, or Form 

990-EZ, and entered in the address field 

at the top of the form. A self-dealer, 

donor, donor advisor, related person, 

disqualified person, or manager filing a 

separate Form 4720 enters their name, 

address, and taxpayer identification 

number in the address field at the top of 

the form. The name and address of the 

organization to which taxes reported in 

Part II relate is entered in the address 

field at the top of Part II.

Include the suite, room, or other unit 

number after the street address.

If the Post Office doesn't deliver mail 

to the street address, show the P.O. box 

number instead of the street address.

If you want a third party (such as an 

accountant or an attorney) to receive 

mail for the foundation or charity, enter 

on the street address line “C/O” followed 

by the third party's name and street 

address or P.O. box.

Signature and Verification

Each taxpayer required to file Form 

4720 (see Who Must File, earlier) must 

file their own return. Each return must 

be signed by a person authorized to 

sign the return as of the date the return 

is filed.

For a corporation (or an association), 

the form may be signed by one of the 

following: president, vice president, 

treasurer, assistant treasurer, chief 

accounting officer, or other corporate 

officer (such as tax officer).

For a partnership, the form may be 

signed by a partner or partners 

authorized to sign the partnership 

return.

For a trust, the form must be signed 

by the trustee(s).

A receiver, trustee, or assignee 

required to file any return on behalf of an 

individual, a trust, estate, partnership, 

association, company, or corporation 

must sign the Form 4720 filed for these 

taxpayers.

Also, a person with a valid power of 

attorney may sign for the organization, 

foundation, manager, self-dealer, donor, 

donor advisor, or related person. 

Include a copy of the power of attorney 

with the return.

Attachments

If you need more space, and are 

permitted to file a paper form, attach 

separate sheets showing the same 

information in the same order as on the 

printed form. Show the totals on the 

printed form.

Enter the organization's name and 

EIN on each sheet. Use sheets that are 

the same size as the form and indicate 

clearly the line of the paper form to 

which the information relates.

Organizations Organized 

or Created in a Foreign 

Country

Report all amounts in U.S. currency 

(state conversion rate used) and give 

information in English. Report items in 

total, including amounts and 

transactions from both inside and 

outside the United States.

Chapter 42 taxes (including sections 

4941 through 4945, 4955, 4958 through 

4960, and 4965 through 4968) don't 

apply to foreign organizations that 

receive substantially all of their support 

(other than gross investment income) 

from sources outside the United States. 

See section 4948(b). These 

organizations must complete this form 

and file it in the same manner as 

domestic organizations. However, these 

organizations, as well as their 

foundation managers and self-dealers, 

don't have to pay any tax that would 

otherwise be due on this return.

For these purposes, a foreign 

organization is an organization not 

created or organized in or under the law 

-4- Instructions for Form 4720 (2023)
of the United States, a U.S. state or 

territory, or the District of Columbia. 

Gifts, grants, contributions, or 

membership fees directly or indirectly 

from a United States person (as defined 

in section 7701(a)(30)) are from sources 

within the U.S. See Regulations section 

53.4948-1.

Although a foreign organization 

described in section 4948(b) isn't 

subject to Chapter 42 taxes, it shall not 

be exempt from tax under section 

501(a) if it engages in a prohibited 

transaction. See section 4948(c). A 

prohibited transaction is a transaction 

that would subject the organization or its 

disqualified person to a penalty under 

section 6684 if the foreign organization 

were a domestic organization. Unless 

the transaction constitutes a willful and 

flagrant violation of a Chapter 42 

provision, a transaction violating a 

Chapter 42 provision won't constitute a 

prohibited transaction except under the 

following circumstances:

1. There was a prior Chapter 42 

violation that resulted in a warning from 

the IRS that a second violation would 

result in a prohibited transaction.

2. The IRS provides notice that the 

second transaction will constitute a 

prohibited transaction unless it is 

corrected within 90 days of the notice.

3. The second transaction isn't 

timely corrected.

Reporting Self-Dealing, 

Excess Benefit 

Transactions, and 

Prohibited Benefits

A private foundation that engages in a 

self-dealing transaction must report the 

transaction on Schedule A but must not 

pay the tax liability of any disqualified 

person or manager liable for the excise 

tax under section 4941(a)(1) or (2).

Payment by a private foundation of any 

taxes owed by the foundation managers 

or self-dealers will result in additional 

taxes under the self-dealing and taxable 

expenditure provisions (sections 4941 

and 4945, respectively). In addition, 

these payments could impact the 

foundation's calculation of undistributed 

income on Form 990-PF which could 

subject the foundation to additional 

taxes under section 4942. Managers 

and self-dealers should pay taxes 

imposed on them from their own funds.

An organization that engages in an 

excess benefit transaction must report 

the transaction on Schedule I but must 

not pay the tax liability of any 

disqualified person or manager liable for 

the excise tax under section 4958(a)(1) 

or (2). Disqualified persons and entity 

managers should each file their own 

return and should pay taxes on excess 

benefit transactions that are imposed on 

them under section 4958 from their own 

funds. Any reimbursement of a 

disqualified person's tax liability from 

excess benefit transactions by the 

organization will be treated as an excess 

benefit transaction subject to the tax 

unless the organization included the 

reimbursement in the disqualified 

person's compensation and the 

disqualified person's total compensation 

was reasonable. See the instructions for 

Schedule I, later, for information on 

excess benefit transactions.

Similarly, an organization that pays a 

prohibited benefit from a donor advised 

fund must report the transaction(s) on 

Schedule L but must not pay the tax 

liability of any donor advisor or manager 

liable for the excise taxes under section 

4967. Such persons should each file 

their own return and pay the applicable 

excise tax under section 4967 from their 

own funds. Any reimbursement of a 

donor advisor's tax liability under 

section 4967 by the organization will be 

treated an additional prohibited benefit.

Tax Payments

The organization or a related 

organization liable for the section 4960 

excise tax on excess executive 

compensation, reports and computes 

the taxes owed on Part I. The 

organization or related organization 

pays the applicable taxes on Part III of 

the organization’s Form 4720. Each 

must file their own return and cannot file 

jointly.

Managers, self-dealers, disqualified 

persons, donors, donor advisors, and 

related persons, report and compute the 

applicable taxes on Part II. Such 

persons pay the applicable tax on Part 

III, each filing a separate Form 4720.

Tax payments can be made by check 

or through the Electronic Federal Tax 

Payment System (EFTPS). For more 

information about EFTPS or to enroll in 

EFTPS, visit the EFTPS website at 

EFTPS.gov, or call 800-555-4477. You 

can also get Pub. 966, Electronic 

Federal Tax Payment System: A Guide 

to Getting Started. See below for an 

exception to this rule for small 

foundations.

Rounding Off to Whole 

Dollars

You may round off cents to whole dollars 

on your return and schedules. If you do 

round to whole dollars, you must round 

all amounts. To round, drop amounts 

under 50 cents and increase amounts 

from 50 to 99 cents to the next dollar. 

For example, $1.39 becomes $1 and 

$2.50 becomes $3.

If you have to add two or more 

amounts to figure the amount to enter 

on a line, include cents when adding the 

amounts and round off only the total.

Penalties and Interest

There are penalties for failure to file or to 

pay tax. There are also penalties for 

willful failure to file, supply information or 

pay tax, and for filing fraudulent returns 

and statements, that apply to public 

charities, private foundations, 

managers, donors, donor advisors, 

related persons, and self-dealers who 

are required to file this return. See 

sections 6651, 7203, 7206, and 7207. 

Also, see section 6684 for penalties that 

relate to tax liability under Chapter 42.

Interest on any unpaid tax is charged 

at the underpayment rate established 

under section 6621. The interest on 

underpayments is in addition to any 

penalties.

Abatement

Use Form 843, Claim for Refund and 

Request for Abatement, to request 

abatement, refund, or relief under 

section 4962. See section 4962 for rules 

on abatement, refund, or relief from 

payment of first tier taxes under sections 

4942 through 4945, 4955, 4958, 4966, 

and 4967.

Note. If you file Form 4720 on paper, 

you can submit the Form 843 with your 

Form 4720 or mail it separately, as 

described in the instructions for that 

form. If you file Form 4720 electronically, 

mail Form 843, as described in the 

instructions for that form, after receiving 

confirmation your electronically filed 

Form 4720 has been accepted.

Initial Tax Liability and 

Correction

If you pay an initial tax under sections 

4941 through 4945, 4955, and 4958, for 

tax year 2023, the payment may not 

satisfy the entire tax liability for a taxable 

event. The taxable event is the act, 

failure to act, or transaction that resulted 

in the liability for initial taxes under these 

provisions.

Instructions for Form 4720 (2023) -5-
Paying the tax and filing a Form 4720 

are required for each year or part of a 

year in the taxable period that applies to 

the taxable event. Generally, the taxable 

period begins with the date of the act or 

investment and ends with the date 

corrective action is completed, a notice 

of deficiency is mailed, or the tax is 

assessed, whichever comes first. Thus, 

the initial tax liability for those taxes 

continues to accrue until the date a 

notice of deficiency is mailed, the 

violation is corrected, or the tax is 

assessed, whichever comes first.

To avoid additional taxes and 

penalties, and in some cases, further 

initial taxes, a foundation, organization, 

disqualified person, or manager must 

correct the taxable event within the 

correction period.

Generally, the correction period 

begins on the date the event occurs and 

ends 90 days after the mailing date of a 

notice of deficiency, under section 6212, 

in connection with the second-tier tax 

imposed on that taxable event. That 

time is extended by:

• Any period in which a deficiency can't 

be assessed under section 6213(a) 

because a petition to the Tax Court for 

redetermination of the deficiency is 

pending, not extended by any 

supplemental proceeding by the Tax 

Court under section 4961(b), regarding 

whether any correction was made, and

• Any other period the IRS determines 

is reasonable and necessary to correct 

the taxable event.

The taxable event will be treated as 

occurring:

• For the tax on failure to distribute 

income (section 4942), on the first day 

of the tax year for which there was a 

failure to distribute income,

• For the tax on excess business 

holdings (section 4943), on the first day 

on which there were excess business 

holdings, or

• In any other case (sections 4941, 

4945, 4955, and 4958), on the date the 

event occurred.

Refer to the instructions for the 

applicable schedule for information 

relating to corrections made (or not 

made) for the applicable excise tax.

Completing the Schedules

Before completing any of the schedules 

in this return, read the applicable 

instructions. If any completed schedule 

shows taxes you owe, enter them on 

Part I if you are the organization (or 

related organization subject to tax under 

section 4960) or Part II of this return if 

you are a manager, self-dealer, 

disqualified person, donor, donor 

advisor, or related person.

The organization will complete all 

parts of each applicable schedule, 

including computation of the initial tax 

on other persons (for example, 

self-dealers and managers), even 

though the organization is not liable for 

those tax amounts. Entities other than 

the organization and individuals filing 

Form 4720 should complete the parts of 

a schedule that apply to the 

transaction(s) that give rise to their 

liability. Where liability is being allocated 

among more than one person (for 

example, two or more managers 

allocating the initial tax on managers), 

the person filing the return should show 

the full amount of tax and show how the 

liability allocated.

Note. See Liability for Tax (later in Part 

II) regarding allocation of liability among 

twoor more persons liable for an excise 

tax under Chapter 42.

The instructions for Schedules A 

through O describe acts or transactions 

subject to tax under Chapter 42. Don't 

complete Schedules A and E if 

exceptions apply to all the acts or 

transactions. In general, question A on 

page 1 and Schedules A, B, C, D, and E 

don't apply to public charities. However, 

Schedule C does apply to some public 

charities including certain sponsoring 

organizations of donor advised funds 

and certain supporting organizations 

that are treated as private foundations 

for purposes of section 4943. See the 

instructions for Schedule C for a 

description of the public charities to 

which section 4943 applies.

Before completing Schedule C, 

determine whether the organization or 

donor advised fund has excess holdings 

in any business enterprise. If the 

organization or donor advised fund has 

holdings subject to the tax on excess 

business holdings, complete a separate 

Schedule C for each enterprise.

Before completing Schedule D, 

determine whether the investment was 

program related. If not, complete 

Schedule D for each investment for 

which you answered “Yes,” to Form 

990-PF, Part VI-B, question 4a or b, or 

Form 5227, Part VIII, question 4a or b.

Amended Return

To correct a previously filed Form 4720 

(including the reporting of additional 

excise taxes discovered after the 

original Form 4720 filing), use the same 

year form as the form you are correcting. 

Check the “Amended Return” box in the 

heading area.

Complete the entire return (not just 

the part that changed) following the form 

and instructions for the amended year.

Include a statement that identifies the 

lines and amounts being changed and 

the reason for each change.

If the amended return shows tax due 

and you wish to request abatement of 

the tax reported on Form 4720, see 

Abatement, earlier. If the amended 

return results in an overpayment of tax 

previously paid, show the amount of the 

overpayment in Part III, line 4. Do not file 

Form 843, Claim for Refund and 

Request for Abatement, to request a 

refund of an overpayment computed on 

Part III, line 4.

Specific Instructions for

Page 1

An organization filing Form 4720 should 

check the appropriate box for the type of 

annual return it files. If filing as an 

individual or taxable entity and the 

annual return you file isn't shown, 

subject to a Chapter 42 tax, check 

“Other.”

Question A. If filing as a person 

subject to a Chapter 42 tax, answer with 

respect to the related organization.

Question B. Answer “Yes” to question 

B if you are a self-dealer, donor, donor 

advisor, related person, disqualified 

person, or manager and you will be filing 

Form 4720 to report and pay excise 

taxes with respect to more than one 

organization. For example, if you are a 

manager of two private foundations, 

both of which made taxable 

expenditures for which the initial tax on 

managers is imposed under section 

4945(a)(2), answer “Yes” to question B. 

Attach a list showing the name and EIN 

of each organization.

You should also answer "Yes" to 

question B if you are a related 

organization that is reporting your 

ratable share of the section 4960 excise 

tax on excess executive compensation 

(reported on Part I) in the same year that 

you are a disqualified person or 

organization manager who must report 

and pay an excise tax on Part II with 

respect to the same organization. You 

cannot combine amounts from Part I 

and Part II in Part III. Therefore, you will 

need to file separate returns - one to 

report your ratable share of excess 

executive compensation on Part I, and a 

-6- Instructions for Form 4720 (2023)
second return to report any excise taxes 

reported on Part II.

Note. A complete list of organizations 

with respect to which you will file Form 

4720 is necessary to ensure that all 

Form 4720 returns you must file can be 

accepted for processing.

Part I

Part I is completed by the organization 

or a related organization liable for tax 

under section 4960.

An organization filing Form 4720 

solely to report activity or transactions 

on Schedule A, Schedule I, or 

Schedule L, should leave lines 1 

through 14 of Part I blank and enter a 

zero on line 15.

An organization filing form 4720 to 

report activity or transactions on 

Schedule A, Schedule I, or Schedule L 

and that also owes excise tax for any 

transactions reported on other 

schedules should complete all 

applicable schedules, but report in Part I 

only the tax imposed on the 

organization.

Note. The organization should not 

make any entries in Part II.

Line 8

If the organization has an entry 

on this line, it must also file 

Form 8870.

Enter the total of all premiums paid 

by the organization on any personal 

benefit contract if the payment of 

premiums is in connection with a 

transfer for which a deduction isn't 

allowed under section 170(f)(10)(A). 

Also, if there is an understanding or 

expectation that any person will directly 

or indirectly pay any premium on a 

personal benefit contract for the 

transferor, include those premium 

payments in the amount entered on this 

line.

A personal benefit contract is (to the 

transferor) any life insurance, annuity, or 

endowment contract that benefits 

directly or indirectly the transferor, a 

member of the transferor's family, or any 

other person designated by the 

transferor (other than an organization 

described in section 170(c)).

For more information, see Notice 

2000-24, 2000-17 I.R.B. 952, at 

IRS.gov/pub/irs-irbs/irb00-17.pdf.

TIP

Line 11

Section 664(c)(2) imposes an excise tax 

on the unrelated business taxable 

income of a charitable remainder trust. 

The excise tax is equal to the trust's 

unrelated business taxable income. 

Enter the charitable remainder trust's 

unrelated business taxable income on 

line 11.

Computation of unrelated business 

taxable income. Charitable remainder 

trusts should use Form 990-T to 

compute their unrelated business 

taxable income. Complete Form 990-T 

as follows.

1. Enter the trust's name under 

“Name of organization” and complete 

item D (EIN) at the top of page 1.

2. Complete as many Schedules A 

(Form 990-T) as needed to calculate the 

trust’s unrelated business taxable 

income. Leave any line that does not 

apply blank. Complete the applicable 

parts of each Schedule A, including the 

business activity code for each 

Schedule A. Attach forms or other 

attachments required for a complete 

Schedule A. However, if Schedule D 

(Form 1041) is required, don't complete 

Part V of Schedule D (Form 1041).

3. After all Schedules A have been 

prepared, complete Form 990-T, Part I 

only. Don't complete Parts II through V 

or the signature area of Form 990-T.

4. Enter the amount from Part I, 

line 11 of Form 990-T on Part I, line 11 

of Form 4720.

Part II

Part II is completed by a manager, selfdealer, disqualified person, donor, donor 

advisor, or related person subject to tax 

under sections 4912(b), 4941(a), 

4944(a)(2), 4945(a)(2), 4955(a)(2), 

4958(a), 4965(a)(2), 4966(a)(2), and 

4967(a). Enter the name, address, and 

employer identification number of the 

foundation or organization with respect 

to which tax is owed as a manager, 

self-dealer, disqualified person, donor, 

donor advisor, or related person, as 

computed in Schedules A, D, E, F, H, I, 

J, K, and L.

Note. A related organization that owes 

section 4960 excise tax on excess 

executive compensation should report 

the tax in Part I and should not make 

entries in Part II.

Line 1. Enter the sum of:

1. Taxes you owe as a self-dealer, 

from Schedule A, Part II, column (d), 

and

2. Tax for acts of self-dealing in 

which you participated as a manager, 

from Schedule A, Part III, column (d).

Line 2. Enter the tax on investments 

that jeopardize charitable purpose from 

Schedule D, Part II, column (d), that you 

took part in as a foundation manager.

Line 3. Enter the tax on taxable 

expenditures from Schedule E, Part II, 

column (d), that you took part in as a 

foundation manager.

Line 4. Enter the tax on political 

expenditures from Schedule F, Part II, 

column (d), that you took part in as an 

organization or foundation manager.

Line 5. Enter the tax on disqualifying 

lobbying expenditures from Schedule H, 

Part II, column (d), that you took part in 

as an organization manager.

Line 6. Enter the sum of:

1. Taxes you owe as a disqualified 

person, from Schedule I, Part II, column 

(d), and

2. Tax on excess benefit 

transactions in which you as 

organization manager participated 

knowing that the transaction was an 

excess benefit transaction, from 

Schedule I, Part III, column (d).

Line 7. Enter the tax on you as the 

entity manager who approved or 

otherwise caused the entity to be a 

party to a prohibited tax shelter 

transaction from Schedule J, Part II, 

column (d).

Line 8. Enter the tax on taxable 

distributions from sponsoring 

organizations maintaining donor 

advised funds from Schedule K, Part II, 

column (d), that you took part in as a 

manager.

Line 9. Enter the sum of:

1. Tax imposed on you as a donor, 

donor advisor, or related person, from 

Schedule L, Part II, column (d), and

2. Tax imposed on you as a fund 

manager who agreed to making of a 

prohibited benefit distribution from 

Schedule L, Part III, column (d).

Liability for tax. A person's liability 

for tax as a manager, self-dealer, 

disqualified person, donor, donor 

advisor, or related person, under 

sections 4912, 4941, 4944, 4945, 4955, 

4958, 4966, and 4967 is joint and 

several. Therefore, if more than one 

person owes tax on an act as a 

manager, self-dealer, disqualified 

person, donor, donor advisor, or related 

person, they may apportion the tax 

Instructions for Form 4720 (2023) -7-
among themselves. However, when all 

managers, self-dealers, donors, donor 

advisors, related persons, or 

disqualified persons who are liable for 

tax on a particular transaction under 

sections 4912, 4941, 4944, 4945, 4955, 

4958, 4966, or 4967 pay less than the 

total tax due on that transaction, then 

the IRS may charge the amount owed to 

one or more of them regardless of the 

tax apportionment shown on this return.

Part III

Line 1. Organizations and related 

organizations owing tax under section 

4960 enter the total tax amount from 

Part I, line 15. Managers, self-dealers, 

disqualified persons, donors, donor 

advisors, or related persons enter the 

total tax amount from Part II, line 10.

Line 2. List total payments here, 

including amounts paid on extension 

with Form 8868. See the discussion on 

Extensions, earlier, for details on 

amounts paid with extensions.

Line 3. Enter the tax due on this line. 

Make check(s) or money order(s) 

payable to the United States Treasury.

Line 4. This is your refund. Only 

persons with a legal right to a refund 

should file a refund request here.

Amounts from Parts I and Part II 

cannot be combined in Part III.

Schedule A—Initial Taxes 

on Self-Dealing (Section 

4941)

General Instructions

Requirement. All organizations that 

answered “Yes,” to question 1b or 1d in 

Part VI-B of Form 990-PF, or “Yes,” to 

question 1b or 1c in Part VIII of Form 

5227, must complete Schedule A. In 

addition, a self-dealer or a manager that 

participated in an act of self-dealing 

knowing that it was such an act must 

also complete Schedule A. Complete 

Parts I, II, and III of Schedule A only in 

connection with acts that are subject to 

the tax on self-dealing.

Paying the tax and filing a Form 4720 

is required for each year or part of a year 

in the taxable period that applies to the 

act of self-dealing. Generally, the 

taxable period begins with the date on 

which the self-dealing occurs and ends 

on the earliest of:

• The date a notice of deficiency is 

mailed under section 6212, in 

CAUTION

!

connection with the initial tax imposed 

on the self-dealer;

• The date the initial tax on the 

self-dealer is assessed; or

• The date any correction of the act of 

self-dealing is completed.

Self-dealing. Self-dealing includes any 

direct or indirect:

• Sale, exchange, or leasing of property 

between a private foundation and a 

disqualified person (see definitions in 

the Form 990-PF instructions),

• Lending of money or other extension 

of credit between a private foundation 

and a disqualified person,

• Furnishing of goods, services, or 

facilities between a private foundation 

and a disqualified person,

• Payment of compensation (or 

payment or reimbursement of 

expenses) by a private foundation to a 

disqualified person,

• Transfer to, or use by or for the benefit 

of, a disqualified person of the income 

or assets of a private foundation, and

• Agreement by a private foundation to 

make any payment of money or other 

property to a government official other 

than an agreement to employ or make a 

grant to that individual for any period 

after the end of government service if 

that individual will be ending 

government service within a 90-day 

period.

Exceptions to self-dealing. Go to 

IRS.gov Technical Guide 58 Excise 

Taxes on Self-Dealing under IRC 4941 

for a description of acts that aren't 

considered self-dealing.

Initial taxes on self-dealer. An initial 

tax of 10% of the amount involved is 

charged for each act of self-dealing 

between a disqualified person and a 

private foundation for each year or part 

of a year in the taxable period. Any 

disqualified person (other than a 

foundation manager acting only as 

such) who takes part in the act of 

self-dealing must pay the tax.

Initial taxes on foundation managers. When a tax is imposed on a 

foundation manager for an act of 

self-dealing, the tax will be 5% of the 

amount involved in the act of 

self-dealing for each year or part of a 

year in the taxable period. However, the 

total tax imposed for all years in the 

taxable period is limited to $20,000 for 

each act of self-dealing. The tax is 

imposed on any foundation manager 

who took part in the act knowing that it 

was self-dealing except those 

foundation managers whose 

participation was not willful and was due 

to reasonable cause.

Specific Instructions

Part I. List each act of self-dealing in 

Part I. In column (c), for each act of 

self-dealing in Part I, indicate whether 

the act has been corrected. For the 

purposes of a self-dealing transaction 

described in section 4941, the term 

“correction” generally means undoing 

the transaction to the extent possible, 

but in any case, placing the private 

foundation in a financial position not 

worse than that in which it would be if 

the disqualified person were dealing 

under the highest fiduciary standards.

Answer “Yes,” in column (c) if 

correction has been made in whole or in 

part. Answer “No,” only if the transaction 

has not been corrected in any way.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is partial, explain why 

complete correction has not been made. 

If correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

Enter in column (e) the number 

designation from Form 990-PF, Part 

VI-B, question 1a, or Form 5227, Part 

VIII, question 1a that applies to the act. 

For example, “1a(1)” or “1a(4).”

Part II. Enter in column (a) the names 

of all disqualified persons who took part 

in the acts of self-dealing listed in Part I. 

If more than one disqualified person 

took part in an act of self-dealing, each 

is individually liable for the entire tax in 

connection with the act. But the 

disqualified persons who are liable for 

the tax may prorate the payment among 

themselves. Enter in column (c) the tax 

to be paid by each disqualified person.

A self-dealer filing Form 4720 should 

carry the appropriate amount in column 

(d) to Part II, line 1.

The organization should not 

carry any amount from column 

(d) to Part II, line 1.

Part III. Enter in column (a) the names 

of all foundation managers who took 

part in the acts of self-dealing listed in 

Part I, and who knew that the acts were 

self-dealing (except for foundation 

managers whose participation was not 

willful and was due to reasonable 

cause).

CAUTION

!

-8- Instructions for Form 4720 (2023)
If more than one foundation manager 

took part in the act of self-dealing, 

knowing that it was such an act, and 

participation was willful and not due to 

reasonable cause, each is individually 

liable for the entire tax in connection 

with the act. But the foundation 

managers liable for the tax may prorate 

the payment among themselves. Enter 

in column (c) the tax to be paid by each 

foundation manager.

Carry the total amount in column (d) 

for each foundation manager to Part II, 

line 1.

The organization should not 

carry any amount from column 

(d) to Part II, line 1.

Schedule B—Initial Tax on 

Undistributed Income 

(Section 4942)

Complete Schedule B if you answered 

“Yes,” to Form 990-PF, Part VI-B, 

question 2b.

An initial excise tax of 30% is 

imposed on a private foundation's 

undistributed income on the first day of 

the second or any succeeding tax year 

after the tax year in connection with 

which income remains undistributed.

Use the 2023 Form 4720 to report 

the initial tax on undistributed income for 

tax years beginning in 2022 or earlier 

that remains undistributed at the end of 

the foundation's current tax year 

beginning in 2023. The initial tax won't 

apply to a private foundation's 

undistributed income:

• For any tax year it is an operating 

foundation (as defined in section 4942(j)

(3) and related regulations or in section 

4942(j)(5)); or

• To the extent it didn't distribute an 

amount solely because of an incorrect 

valuation of assets, provided the 

foundation satisfies the requirements of 

section 4942(a)(2); or

• For any year for which the initial tax 

was previously assessed or a notice of 

deficiency was issued.

Line 3. Undistributed income is 

corrected by making sufficient qualifying 

distributions to compensate for deficient 

qualifying distributions for a prior tax 

year. You must attach a statement that 

describes any qualifying distributions 

made to correct the undistributed 

income and the date(s) those 

distributions were made. If no qualifying 

distributions have been made to correct 

the undistributed income, explain why 

and describe steps you will take to make 

the necessary qualifying distributions. If 

CAUTION

!

applicable, indicate whether the election 

under 4942(h) has been made. See the 

Instructions for Form 990-PF, Part XII, 

lines 4b and 4c.

Schedule C—Initial Tax on 

Excess Business Holdings 

(Section 4943)

General Instructions

Private foundations may be subject to 

an excise tax on the amount of any 

excess holdings, as described later. For 

purposes of section 4943, donor 

advised funds and certain supporting 

organizations are considered private 

foundations. For more information on 

the applicability of Schedule C to such 

organizations, see General rules on the 

permitted holdings of donor advised 

funds and certain supporting 

organizations in a business enterprise, 

later.

Requirement. If you answered “Yes,” to 

Form 990-PF, Part VI-B, question 3b; 

Form 990, Part V, question 8; or Form 

5227, Part VIII, question 3b, or 

otherwise had excess business 

holdings, complete a Schedule C for 

each business enterprise in which the 

foundation had excess business 

holdings for its tax year beginning in 

2023.

Taxes. A private foundation that has 

excess holdings in a business 

enterprise may become liable for an 

excise tax based on the amount of 

holdings. The initial tax is 10% of the 

value of the excess holdings and is 

imposed on the last day of each tax year 

that ends during the taxable period. The 

excess holdings are determined on the 

day during the tax year when they were 

the largest.

If the foundation keeps the excess 

business holdings after the initial tax 

has been imposed, the foundation 

becomes liable for an additional tax of 

200% of the remaining excess business 

holdings unless it disposes of them 

within the taxable period. However, if the 

foundation disposes of its excess 

business holdings during the correction 

period, the additional tax won't be 

assessed or, if assessed, will be abated 

and if collected, will be credited or 

refunded. For information on the 

correction period, go to IRS.gov TG 60 

Taxes on Excess Business Holdings 

IRC 4943.

Business enterprise. In general, this 

means the active conduct of a trade or 

business, including any activity regularly 

conducted to produce income from 

selling goods or performing services, 

that is an unrelated trade or business 

described in section 513.

The term “business enterprise” 

doesn't include a functionally related 

business, as defined in section 4942(j)

(4). In addition, business holdings don't 

include program-related investments 

(such as investments in small 

businesses in economically depressed 

areas or in corporations to assist in 

neighborhood renovations) as defined in 

section 4944(c) and related regulations. 

Also, business enterprise doesn't 

include a trade or business at least 95% 

of the gross income of which comes 

from passive sources. For more 

information, go to IRS.gov TG 61 Taxes 

on Investments which Jeopardize 

Charitable Purposes IRC 4944.

Excess business holdings. Excess 

business holdings is the amount of 

stock or other interest in a business 

enterprise that the foundation would 

have to dispose of to a person other 

than a disqualified person in order for 

the foundation's remaining holdings in 

the enterprise to be permitted holdings 

(section 4943(c)(1)). Go to IRS.gov TG 

60 Taxes on Excess Business Holdings 

IRC 4943 for more information.

Sole proprietorships. In general, a 

private foundation can't have any 

permitted holdings in a business 

enterprise that is a sole proprietorship. 

For exceptions, go to IRS.gov TG 60 

Taxes on Excess Business Holdings 

IRC 4943. For a definition of sole 

proprietorship, see Regulations section 

53.4943-10(e).

Corporate voting stock. This stock 

entitles a person to vote for the election 

of directors. Treasury stock and stock 

that is authorized but unissued isn't 

voting stock for these purposes. See 

Regulations sections 53.4943-3(b)(1)(ii) 

and 53.4943-3(b)(2)(ii).

For a partnership (including a limited 

partnership) or joint venture, the term 

“profits interest” should be substituted 

for “voting stock.” For any 

unincorporated business enterprise that 

isn't a partnership, joint venture, or sole 

proprietorship, the term “beneficial 

interest” should be substituted for 

“voting stock.” See Regulations section 

53.4943-3(c).

Nonvoting stock. Corporate equity 

interests that don't have voting power 

should be classified as nonvoting stock. 

Evidences of indebtedness (including 

convertible indebtedness), warrants, 

and other options or rights to acquire 

Instructions for Form 4720 (2023) -9-
stock shouldn't be considered equity 

interests. See Regulations section 

53.4943-3(b)(2).

For a partnership (including a limited 

partnership) or joint venture, the term 

“capital interest” should be substituted 

for “nonvoting stock.” For any 

unincorporated business that isn't a 

partnership, joint venture, or sole 

proprietorship, references to nonvoting 

stock don't apply for computation of 

permitted holdings. See Regulations 

section 53.4943-3(c)(4).

Attribution of business holdings. In 

determining the holdings in a business 

enterprise of either a private foundation 

or a disqualified person, any stock or 

other interest owned directly or indirectly 

by or for a corporation, partnership, 

estate, or trust is considered owned 

proportionately by or for its 

shareholders, partners, or beneficiaries. 

In general, this rule doesn't apply to 

certain income interests or remainder 

interests of a private foundation in a 

split-interest trust described in section 

4947(a)(2). See Regulations section 

53.4943-8.

Taxable period. The taxable period 

begins on the first day the foundation 

has excess business holdings and ends 

on the earliest of:

• The mailing date of a notice of 

deficiency, under section 6212, in 

connection with the initial tax on excess 

business holdings related to those 

holdings;

• The date the excess is eliminated; or

• The date the initial tax on excess 

business holdings related to those 

holdings is assessed.

When a notice of deficiency isn't 

mailed because the restrictions on 

assessment and collection are waived 

or because the deficiency is paid, the 

date of filing the waiver or the date of 

paying the tax, respectively, will be 

treated as the end of the taxable period. 

See Regulations section 53.4943-9.

Exceptions to Tax on Excess 

Business Holdings

2% de minimis rule. A private 

foundation won't be treated as having 

excess business holdings in any 

enterprise in which it, together with 

related foundations, as described in the 

instructions for Form 990-PF (under the 

definition for “disqualified person” in the 

General Instructions), owns not more 

than 2% of the voting stock and not 

more than 2% in value of all outstanding 

shares of all classes of stock.

Disposition of excess business holdings within 90 days. Generally, when 

a private foundation acquires excess 

business holdings other than as a result 

of purchase by the foundation (such as 

an acquisition by a disqualified person), 

the foundation won't be taxed on those 

excess holdings if it disposes of enough 

of them so that it no longer has an 

excess. To avoid the tax, the disposition 

must take place within 90 days from the 

date the foundation knew, or had reason 

to know, of the event that caused it to 

have excess business holdings. That 

90-day period will be extended to 

include the period during which federal 

or state securities laws prevent the 

foundation from disposing of those 

excess business holdings. See 

Regulations section 53.4943-2(a).

General rules on the permitted holdings of a private foundation in a 

business enterprise. No excess 

business holdings tax is imposed (a) if a 

private foundation and all disqualified 

persons together hold no more than 

20% of the voting stock of a business 

enterprise, or (b) on nonvoting stock, if 

all disqualified persons together don't 

own more than 20% of the voting stock 

of the business enterprise.

If the private foundation and all 

disqualified persons together don't own 

more than 35% of the enterprise's voting 

stock, and effective control is in one or 

more persons who aren't disqualified 

persons in connection with the 

foundation, then 35% may be 

substituted for 20% wherever it appears 

in the preceding paragraph. See 

sections 4943(c)(2) and 4943(c)(3).

If a private foundation and all 

disqualified persons together had 

holdings in a business enterprise of 

more than 20% of the voting stock on 

May 26, 1969, substitute that 

percentage for 20% and for 35% (if the 

holding is greater than 35%), using the 

principles of section 4943(c)(4) that 

apply. However, the percentage 

substituted can't be more than 50%.

The percentage substituted under 

the preceding paragraph is (1) subject 

to reductions and limitations (see 

sections 4943(c)(4)(A)(ii) and 4943(c)

(4)(D)), and (2) applicable, both in 

connection with the voting stock and, 

separately, in connection with the value 

of all outstanding shares of all classes of 

stock (see section 4943(c)(4)(A)(iii)).

Interests held by a private foundation (other than donor advised funds 

and supporting organizations) on 

May 26, 1969. For private foundations, 

other than donor advised funds and 

supporting organizations considered to 

be private foundations for purposes of 

section 4943, that had business 

holdings on May 26, 1969 (or holdings 

acquired by trust or will as described 

below), that were more than the current 

limits permit, there are transitional rules 

that permit the foundation to dispose of 

the excess over time without being 

subject to the tax on excess business 

holdings.

During the first phase, no excess 

business holdings tax was imposed on a 

private foundation for interests held 

since May 26, 1969, if the foundation 

had excess holdings on that date. The 

first phase is:

• A 20-year period beginning on May 

26, 1969, if on that date the foundation 

and all disqualified persons held more 

than a 95% voting interest in the 

enterprise (the 20-year first phase 

expired on May 25, 1989);

• A 15-year period beginning on May 

26, 1969, if on that date the foundation 

and all disqualified persons together 

had more than a 75% voting stock 

interest (or more than a 75% profits or 

beneficial interest of any unincorporated 

enterprise), or more than a 75% interest 

in the value of all outstanding shares of 

all classes of stock (or more than a 75% 

capital interest of a partnership or joint 

venture) in the enterprise (the 15-year 

first phase expired on May 25, 1984); 

and

• A 10-year period beginning on May 

26, 1969, in all other cases in which the 

foundation had excess business 

holdings on May 26, 1969. The 10-year 

first phase expired on May 25, 1979.

During the second phase (the 

15-year period after the first phase), if 

the foundation's disqualified persons 

hold more than 2% of the enterprise's 

voting stock, the foundation will be liable 

for tax if the foundation holds more than 

25% of the voting stock or if the 

foundation and its disqualified persons 

together hold more than 50% of the 

voting stock.

However, during the second phase, if 

a foundation's disqualified persons 

purchase voting stock in a business 

enterprise after July 18, 1984, causing 

the combined holdings of the 

disqualified persons to exceed 2% of 

the enterprise's voting stock, the 

foundation has 5 years to reduce its 

holdings in the enterprise to below its 

second phase limit before the increase 

will be treated as held by the foundation. 

See sections 4943(c)(4)(D) and 4943(c)

(6).

-10- Instructions for Form 4720 (2023)
The first-phase periods must be 

suspended pending the outcome of any 

judicial proceeding the private 

foundation brings and which is 

necessary to reform, or to excuse it from 

compliance with its governing 

instrument or similar instrument in effect 

on May 26, 1969. See section 4943(c)

(4)(C) and Regulations section 

53.4943-4.

Holdings acquired by trust or will. 

Holdings acquired under the terms of a 

trust that was irrevocable on May 26, 

1969, or under the terms of a will 

executed by that date, are treated as 

held by the foundation on May 26, 1969, 

except that the 15- and 10-year periods 

of the first phase for the holdings start 

on the date of distribution under the trust 

or will instead of on May 26, 1969. See 

section 4943(c)(5) and Regulations 

section 53.4943-5. See section 4943(d)

(1) and Regulations section 53.4943-8 

for rules relating to constructive holdings 

held in a corporation, partnership, 

estate, or trust for the benefit of the 

foundation.

Gifts or bequests of business holdings. Except as provided in the 

exception regarding Holdings acquired 

by trust or will (discussed above), there 

is a special rule for private foundations 

that have excess business holdings as a 

result of a change in holdings after May 

26,1969. This rule applies if the change 

is other than by purchase by the 

foundation or by disqualified persons 

(such as through gift or bequest) and 

the additional holdings result in the 

foundation having excess business 

holdings. In that case, the foundation 

has 5 years to reduce these holdings or 

those of its disqualified persons to 

permissible levels to avoid the tax. See 

section 4943(c)(6) and Regulations 

section 53.4943-6.

A private foundation that received an 

unusually large gift or bequest of 

business holdings after 1969, and that 

has made a diligent effort to dispose of 

excess business holdings, may apply for 

an additional 5-year period to reduce its 

holdings to permissible levels if certain 

conditions are met. See section 4943(c)

(7).

General rules on the permitted holdings of donor advised funds and certain supporting organizations in a 

business enterprise. Rules similar to 

those described above for interests held 

by private foundations on May 26, 1969, 

will be applied to determine if donor 

advised funds or certain supporting 

organizations with interests as of August 

17, 2006, have any excess business 

holdings. However, the date of August 

17, 2006, will be substituted for May 26, 

1969.

Donor advised fund. In general, a 

donor advised fund is a fund or account 

separately identified by reference to 

contributions of a donor or donors that is 

owned and controlled by a sponsoring 

organization and for which the donor 

has or expects to have advisory 

privileges concerning the distribution or 

investment of the funds. See 

Schedule K for further details.

Sponsoring organization. A 

sponsoring organization is any section 

170(c) organization other than 

governmental entities (described in 

section 170(c)(1) and (2)(A)) that isn't a 

private foundation, as defined in section 

509(a)(3), that maintains one or more 

donor advised funds. See section 

4966(d)(1).

Supporting organizations. Only 

certain supporting organizations are 

subject to the excess business holdings 

tax under section 4943. These include 

(1) Type III supporting organizations that 

aren't functionally integrated, and (2) 

Type II supporting organizations that 

accept any gift or contribution from a 

person who by himself or in connection 

with a related party controls the 

supported organization that the Type II 

supporting organization supports. (See 

the 2023 Instructions for Schedule A 

(Form 990), Part I, question 11, for help 

in determining the type of your 

supporting organization.)

Readjustments, distributions, or 

changes in relative value of different 

classes of stock. See Regulations 

section 53.4943-4(d)(10) for special 

rules whereby increases in the 

percentage of value of holdings in a 

corporation that result solely from 

changes in the relative values of 

different classes of stock won't result in 

excess business holdings.

See Regulations section 

53.4943-6(d) for rules on treatment of 

increases in holdings due to 

readjustments, distributions, or 

redemptions.

See Regulations section 53.4943-7 

for special rules for readjustments 

involving grandfathered holdings.

Exceptions from self-dealing taxes 

on certain dispositions of excess 

business holdings. Section 101(I)(2)

(B) of the Tax Reform Act of 1969 

provides for a limited exception from 

self-dealing taxes for private foundations 

that dispose of certain excess business 

holdings to disqualified persons, as long 

as the sales price equals or is more than 

fair market value.

The excess business holdings 

involved are interests that are subject to 

the section 4941 transitional rules for 

May 26, 1969, holdings. These interests 

would also be subject to the excess 

business holdings tax if they were not 

reduced by the required amount.

Specific Instructions

Complete columns (a) and (b) of 

Schedule C if sections 4943(c)(4), 

4943(c)(3) (using the principles of 

4943(c)(4)), or 4943(c)(5) apply.

Complete column (a) and column (c) 

(if applicable) if sections 4943(c)(2) or 

4943(c)(3) (using the principles of 

4943(c)(2)) apply.

Complete Schedule C for that day 

during the tax year when the 

foundation's excess holdings in the 

enterprise were largest.

Line 1. Enter in column (a) the 

percentage of voting stock the 

foundation holds in the business 

enterprise.

If the foundation is using the rules or 

principles for determining present 

holdings under section 4943(c)(4)(A) or 

(D) (or rules similar to that for donor 

advised funds and certain supporting 

organizations), enter in column (b) the 

percentage of value the foundation 

holds in all outstanding shares of all 

classes of stock.

Don't include in either column (a) or 

(b) stock treated as held by disqualified 

persons:

• Under section 4943(c)(6) or 

Regulations sections 53.4943-6 and 

53.4943-10(d), or

• During the first phase if the first phase 

is still in effect (see Regulations sections 

53.4943-4(a), (b), and (c)).

Line 2. If the foundation is using the 

rules or principles for determining 

present holdings under section 4943(c)

(4) (or rules similar to that for donor 

advised funds and certain supporting 

organizations), refer to that section and 

Regulations section 53.4943-4(d) to 

determine which entries to record in 

columns (a) and (b). Enter in column (a) 

the excess of the substituted combined 

voting level over the disqualified person 

voting level. Enter in column (b) the 

excess of the substituted combined 

value level over the disqualified person 

value level.

If the foundation is using the rules or 

principles for determining permitted 

holdings under section 4943(c)(2), refer 

Instructions for Form 4720 (2023) -11-
to that section to determine which 

entries to record in column (a). Enter in 

column (a) the percentage, using the 

general rule (section 4943(c)(2)(A)) or 

the 35% rule (see section 4943(c)(2)

(B)), if applicable, of permitted holdings 

the foundation may have in the 

enterprise's voting stock. If the 

foundation determines the permitted 

holdings under section 4943(c)(2)(B), 

attach a statement showing effective 

control by a third party.

Line 3. Enter the value of any stock, 

interest, etc., in the business enterprise 

that the foundation is required to 

dispose of so the foundation's holdings 

in the enterprise are permitted. See 

section 4943 and related regulations.

A private foundation using the 

section 4943(c)(4) rules, or a donor 

advised fund or supporting organization 

using rules similar to that, has excess 

holdings if line 1 is more than line 2 in 

either column (a) or column (b). Don't 

include in column (b) the value of any 

voting stock included in column (a).

A private foundation using the 

section 4943(c)(2) rules has excess 

holdings if line 1 is more than line 2 in 

column (a) or if the private foundation 

holds nonvoting stock and all 

disqualified persons together own more 

than 20% (or 35%, if applicable) of the 

enterprise's voting stock, interest, etc. In 

the latter case, enter in column (c) the 

value of all nonvoting stock the 

foundation holds.

Line 4. Enter the value of excess 

holdings disposed of under the 90-day 

rule in Regulations section 53.4943-2(a)

(1)(ii). If other conditions preclude 

imposition of tax on excess business 

holdings, include the value of the 

nontaxable amount on this line and 

check the appropriate boxes on the 

statement page attached to the 

electronic version of Form 4720. 

Organizations not required to file 

electronically may attach an 

explanation.

Line 5. Compute the excess holdings in 

a business enterprise subject to tax.

Line 8. Excess business holdings are 

corrected by taking action as needed 

such that the foundation no longer has 

excess business holdings in a business 

enterprise. Answer “Yes,” if the excess 

business holdings have been corrected 

in whole or in part.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

Schedule D—Initial Taxes 

on Investments That 

Jeopardize Charitable 

Purpose (Section 4944)

General Instructions

Requirement. Complete Schedule D if 

you answered “Yes,” to Form 990-PF, 

Part VI-B, question 4a or b; or Form 

5227, Part VIII, question 4a or b. Each 

manager of the organization or trust that 

answered "Yes," to Form 990-PF, Part 

VI-B, question 4a or b; or Form 5227, 

Part VIII, question 4a or b and who took 

part in making the investment should 

also complete Schedule D. Report each 

investment separately. Paying tax and 

filing a Form 4720 are required for each 

year or part of a year in the taxable 

period that applies to the investments 

that jeopardize the foundation's 

charitable purpose. Generally, the 

taxable period begins with the date of 

the investment and ends with the date 

corrective action is completed, a notice 

of deficiency is mailed, or the initial tax 

is assessed, whichever comes first. 

Therefore, in addition to investments 

made in 2023, include all investments 

subject to tax that were made before 

2023 if those investments were not 

removed from jeopardy before 2023 and 

the initial tax was not assessed before 

2023.

Taxable investments. An investment 

to be taxed on this schedule is an 

investment by a private foundation that 

jeopardizes the carrying out of its 

exempt purposes (for example, if it is 

determined that the foundation 

managers, in making the investment, 

didn't exercise ordinary business care 

and prudence, under prevailing facts 

and circumstances, in providing for the 

long- and short-term financial needs of 

the foundation to carry out its exempt 

purposes). See Regulations section 

53.4944-1(a)(2). An investment isn't 

taxed on this schedule if it is a 

program-related investment; that is, one 

whose primary purpose is one or more 

of those described in section 170(c)(2)

(B) (religious, charitable, educational, 

etc.). A significant purpose of such an 

investment can't be the production of 

income or the appreciation of property. 

See section 4944(c) and Regulations 

section 53.4944-3.

Initial taxes on foundation. The initial 

tax is 10% of the amount invested for 

each year or part of a year in the taxable 

period.

Initial taxes on foundation managers. When a tax is imposed on an 

investment that jeopardizes the 

charitable purpose of the foundation, 

the tax will be 10% of the investment for 

each year or part of a year in the taxable 

period, up to $10,000 for any one 

investment. It is imposed on all 

foundation managers who took part in 

the act, knowing that it was such an act, 

except for foundation managers whose 

participation was not willful and was due 

to reasonable cause. Any foundation 

manager who took part in making the 

investment must pay the tax.

Specific Instructions

Part I. Complete this part for all taxable 

investments. Investments that 

jeopardize the carrying out of the 

foundation’s exempt purpose are 

corrected by selling or otherwise 

disposing of the investment, and holding 

the proceeds of such sale or other 

disposition in investments that do not 

jeopardize the carrying out of the 

foundation's exempt purpose. In column 

(c), for each act of investment listed in 

Part I, indicate whether the investment 

has been corrected. Answer “Yes,” if 

correction has been made in whole or in 

part. Answer “No,” only if the investment 

has not been corrected in any way.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is partial, explain why 

complete correction has not been made. 

If correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

Part II. Enter in column (a) the names 

of all foundation managers who took 

part in making the investments listed in 

Part I. See Initial taxes on foundation 

managers, earlier.

If more than one foundation manager 

is listed in column (a), each is 

individually liable for the entire amount 

of tax in connection with the investment. 

However, the foundation managers who 

are liable for the tax may prorate 

payment among themselves. Enter in 

-12- Instructions for Form 4720 (2023)
column (c) the tax each foundation 

manager will pay.

A foundation manager filing this Form 

4720 should carry the appropriate 

amount in column (d) to Part II, line 2.

Schedule E—Initial Taxes 

on Taxable Expenditures 

(Section 4945)

General Instructions

Requirement. Complete Schedule E if 

you answered “Yes,” to Form 990-PF, 

Part VI-B, question 5b, or Form 5227, 

Part VIII, question 5b. Complete Parts I 

and II of Schedule E only for 

expenditures that are subject to tax.

Note. Also, see Schedule F, Initial 

Taxes on Political Expenditures.

Taxable expenditures. With certain 

exceptions, this means any amount a 

private foundation pays or incurs:

1. To carry on propaganda or 

otherwise influence any legislation 

through:

a. An attempt to influence general 

public opinion or any segment of it, and

b. Communication with any member 

or employee of a legislative body, or with 

any other government official or 

employee who may take part in 

formulating legislation;

2. To influence the outcome of any 

specific public election, or to conduct, 

directly or indirectly, any voter 

registration drive;

3. As a grant to an individual for 

travel, study, or other purposes;

4. As a grant to an organization not 

described in section 509(a)(1), (2), or 

(3) or that isn't an exempt operating 

foundation (as defined in section 

4940(d)(2)). This includes grants to:

a. Type I, Type II, and Type III 

functionally integrated supporting 

organizations (as described in section 

4942(g)(4)(B) and (C)) if a disqualified 

person of the foundation controls such 

supporting organization or the 

supported organizations of such 

supporting organizations, and

b. Type III supporting organizations 

(as described in section 4943(f)(5)(A)) 

that aren't functionally integrated with 

their supported organizations; or

5. For any purpose other than 

religious, charitable, scientific, literary, 

educational, or public purposes, or the 

prevention of cruelty to children or 

animals.

Exceptions. Section 4945(d)(4)(B) 

provides an exception to taxable 

expenditures that applies to certain 

grants to organizations when the 

granting foundation exercises 

expenditure responsibility described in 

section 4945(h). Additional information 

on special rules and exceptions to the 

definition of taxable expenditures given 

above can be found at IRS.gov TG 62 

Excise Taxes on Taxable Expenditures 

under IRC 4945.

Initial tax on foundation. An initial tax 

of 20% is imposed on each taxable 

expenditure of the foundation.

Initial tax on foundation managers. 

When a tax is imposed on a taxable 

expenditure of the foundation, a tax of 

5% of the expenditure will be imposed 

on any foundation manager who agreed 

to the expenditure and who knew that it 

was a taxable expenditure. Foundation 

managers whose participation was not 

willful and was due to reasonable cause 

aren't liable for the tax. Any foundation 

manager who took part in the 

expenditure and is liable for the tax must 

pay the tax. The maximum total amount 

of tax on all foundation managers for 

any one taxable expenditure is $10,000. 

If more than one foundation manager is 

liable for tax on a taxable expenditure, 

all those foundation managers are jointly 

and severally liable for the tax.

Specific Instructions

Part I. Complete this part for all taxable 

expenditures. Enter in column (f) the 

number designation from Form 990-PF, 

Part VI-B, question 5a, or Form 5227, 

Part VIII, line 5 that applies to the act; for 

example, “5a(1).”

A taxable expenditure is corrected by 

(a) recovering part or all of the 

expenditure to the extent recovery is 

possible, and where full recovery isn't 

possible, such additional corrective 

action as is prescribed by regulations; or 

(b) if the taxable expenditure is due to 

failure to comply with requirements 

described in section 4945(h)(2) or (3) 

(expenditure responsibility), obtaining or 

making the report in question. In column 

(d), for each act of taxable expenditure 

listed in Part I, indicate whether the 

investment has been corrected. Answer 

“Yes,” if correction has been made in 

whole or in part. Answer only “No,” if the 

taxable expenditure has not been 

corrected in any way.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is partial, explain why 

complete correction has not been made. 

If correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

Part II. Enter in column (a) the names 

of all foundation managers who agreed 

to make the taxable expenditure. See 

Initial tax on foundation managers, 

earlier. If more than one foundation 

manager is listed in column (a), each is 

individually liable for the entire tax in 

connection with the expenditure. 

However, the foundation managers who 

are liable for the tax may prorate the 

payment among themselves. Enter in 

column (c) the tax each foundation 

manager will pay.

A foundation manager filing this Form 

4720 should carry the appropriate 

amount in column (d) to Part II, line 3.

Schedule F—Initial Taxes 

on Political Expenditures 

(Section 4955)

General Instructions

Requirement. Complete Schedule F if 

you answered “Yes,” to question 5a(2) 

and 5b of Form 990-PF, Part VI-B. 

Complete Schedule F if you entered an 

amount on line 2 of Schedule C (Form 

990), Part I-A. Complete Schedule F if 

you are otherwise a section 501(c)(3) 

organization that made a political 

expenditure.

Political expenditures. These include 

any amount paid or incurred by a 

section 501(c)(3) organization that 

participates or intervenes in (including 

the publication or distribution of 

statements) any political campaign on 

behalf of, or in opposition to, any 

candidate for public office. The tax is 

imposed even if the political expenditure 

gives rise to a revocation of the 

organization's section 501(c)(3) status.

These taxes apply in the case of both 

public charities and private foundations. 

When tax is imposed under this 

provision in the case of a private 

foundation, however, the expenditure in 

question won't be treated as a taxable 

expenditure under section 4945.

For an organization formed primarily 

to promote the candidacy or prospective 

candidacy of an individual for public 

office (or that is effectively controlled by 

a candidate or prospective candidate 

and is used primarily for such 

Instructions for Form 4720 (2023) -13-
purposes), amounts paid or incurred for 

any of the following purposes are 

deemed political expenditures:

• Remuneration to the candidate or 

prospective candidate for speeches or 

other services;

• Travel expenses of the individual;

• Expenses of conducting polls, 

surveys, or other studies, or preparing 

papers or other material for use by the 

individual;

• Expenses of advertising, publicity, 

and fundraising for such individual; and

• Any other expense which has the 

primary effect of promoting public 

recognition or otherwise primarily 

accruing to the benefit of the individual.

Initial tax on organization or foundation. The initial tax on the organization 

or foundation is 10% of the amount 

involved.

Initial tax on organization managers 

or foundation managers. An initial tax 

of 2.5% of the amount involved (up to 

$5,000 of tax on any one expenditure) is 

imposed on any manager who agrees to 

an expenditure, knowing that it is a 

political expenditure, unless the 

agreement isn't willful and is due to 

reasonable cause.

Any manager who agreed to the 

expenditure must pay the tax.

Specific Instructions

Part I. Complete this part for all political 

expenditures. A political expenditure 

described in section 4955 is corrected 

by recovering part or all of the 

expenditure to the extent recovery is 

possible, establishment of safeguards to 

prevent future political expenditures, 

and where full recovery isn't possible, 

such additional corrective action as is 

prescribed by the regulations. In column 

(d), for each act of political expenditure 

listed in Part I, indicate whether the 

investment has been corrected. Answer 

“Yes,” if correction has been made in 

whole or in part. Answer “No,” only if the 

political expenditure has not been 

corrected in any way.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is partial, explain why 

complete correction has not been made. 

If correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

Part II. Enter in column (a) the names 

of all managers who took part in making 

the political expenditures listed in Part I. 

See Initial tax on organization managers 

or foundation managers, earlier.

If more than one manager is listed in 

column (a), each is individually liable for 

the entire amount of tax on the 

expenditure. However, the managers 

who are liable for the tax may prorate 

payment among themselves. Enter in 

column (c) the tax each manager will 

pay.

An organization manager filing this 

Form 4720 should carry the appropriate 

amount in column (d) to Part II, line 4.

Schedule G—Tax on 

Excess Lobbying 

Expenditures (Section 

4911)

Requirement. Schedule G must be 

completed by eligible section 501(c)(3) 

organizations that elected to be subject 

to the limitations on lobbying 

expenditures, under section 501(h) and 

that made excess lobbying expenditures 

as defined in section 4911(b).

Except as noted below, follow the line 

instructions on Schedule G.

Affiliated groups. Two or more 

organizations are members of an 

affiliated group of organizations for the 

purposes of section 4911 only if:

• The governing instrument of one 

organization requires it to be bound by 

decisions of the other organization on 

legislative issues; or

• The governing board of one 

organization includes persons who are 

specifically designated representatives 

of another such organization or are 

members of the governing board, 

officers or paid executive staff members 

of such other organization, and who, by 

aggregating their votes, hold sufficient 

voting power to cause or prevent action 

on legislative activities by the first 

organization. See section 4911(f) and 

Regulations section 56.4911-7.

A nonelecting member of an affiliated 

group doesn’t file Form 4720.

Electing members of an affiliated 

group may file a group return or may file 

separately. An electing member of an 

affiliated group that files a separate 

return, should enter on line 1 the amount 

from Schedule C (Form 990), Part II-A, 

column (a), line 1h. Enter on line 2 the 

amount from Schedule C (Form 990), 

Part II-A, column (a), line 1i.

An electing member of an affiliated 

group that is included in a group return, 

should enter on line 1 its share of the 

excess grass root lobbying expenditures 

of the affiliated group, and on line 2 its 

share of the excess lobbying 

expenditures of the affiliated group. Take 

these amounts from the schedule of 

excess lobbying expenditures that must 

be attached to Schedule C (Form 990). 

See the Instructions for Schedule C 

(Form 990), Part II-A, for a discussion of 

the lobbying provisions, including how to 

figure the taxable amount.

Schedule H—Taxes on 

Disqualifying Lobbying 

Expenditures (Section 

4912)

General Instructions

Requirement. Schedule H must be 

completed by certain organizations 

whose section 501(c)(3) status is 

revoked because of excess lobbying 

activities.

Exceptions. These taxes aren't 

imposed on a private foundation (whose 

lobbying expenditures may be subject to 

the tax on taxable expenditures). These 

taxes also aren't imposed on any 

organization for which a section 501(h) 

election was in effect at the time of the 

lobbying expenditures or that was not 

eligible to make a section 501(h) 

election.

Tax on organization. A tax of 5% of 

the lobbying expenditures is imposed on 

the organization whose section 501(c)

(3) status is revoked because of excess 

lobbying activities.

Tax on organization managers. A tax 

of 5% of the lobbying expenditures is 

also imposed on any manager who 

willfully and without reasonable cause 

consented to the lobbying expenditures, 

knowing that they would likely result in 

the organization no longer qualifying 

under section 501(c)(3).

There is no limit on the amount of this 

tax that may be imposed against either 

the organization or its managers. Any 

organization manager who agreed to the 

expenditure must pay the tax.

Specific Instructions

Part I. Complete this part for all 

disqualifying lobbying expenditures.

Part II. Enter in column (a) the names 

of all organization managers who took 

part in making disqualifying lobbying 

-14- Instructions for Form 4720 (2023)
expenditures listed in Part I. See Tax on 

organization managers, earlier.

If more than one organization 

manager is listed in column (a), each is 

individually liable for the entire amount 

of tax in connection with the 

expenditure. However, the managers 

who are liable for the tax may prorate 

payment among themselves. Enter in 

column (c) the tax each manager will 

pay.

A manager filing this Form 4720 

should carry the appropriate amount in 

column (d) to Part II, line 5.

Schedule I—Initial Taxes 

on Excess Benefit 

Transactions (Section 

4958)

General Instructions

Requirement. Schedule I must be 

completed by any Applicable 

organization or Disqualified person 

that engaged in an Excess benefit 

transaction, and by any fund manager 

who knowingly participated in the 

excess benefit transaction. These terms 

are discussed below. Each person must 

file separately.

Applicable organization. In 

general, an applicable organization is 

any section 501(c)(3) (except a private 

foundation), 501(c)(4), or 501(c)(29) 

organization.

Also, an applicable organization 

includes any organization that was a 

section 501(c)(3) (except a private 

foundation), 501(c)(4), or 501(c)(29) 

organization at any time during a 5-year 

period ending on the date of an excess 

benefit transaction (the lookback 

period).

Initial taxes. Excise taxes are imposed 

under section 4958 on each excess 

benefit transaction. If a manager 

receives an excess benefit from an 

excess benefit transaction, the manager 

may be liable for the tax on disqualified 

persons and the tax on the organization 

manager. The applicable organization 

must complete Schedule I. However, the 

excise tax under section 4958 is 

imposed on the disqualified person. The 

organization completing Schedule I 

should not report the initial tax amount 

on Part II and should not pay the tax 

liability of any disqualified person or 

organization manager. See Abatement, 

earlier, for information on abatement, 

refund, or relief from this tax.

Tax on disqualified persons. The 

tax is 25% of the excess benefit and is 

paid by any disqualified person who 

improperly benefited from the excess 

benefit transaction.

Tax on organization managers. 

When tax is imposed on a disqualified 

person for any excess benefit 

transaction, then tax is also imposed on 

any manager who knowingly 

participated in the excess benefit 

transaction. The tax is 10% of the 

excess benefit, not to exceed $20,000 

for each transaction.

Taxable period. Taxable period 

means the period beginning with the 

date on which the excess benefit 

transaction occurs and ending on the 

earlier of:

1. The date a notice of deficiency 

was mailed to the disqualified person for 

the initial tax on the excess benefit 

transaction, or

2. The date on which the initial tax 

on the excess benefit transaction for the 

disqualified person is assessed.

Excess benefit transaction. An 

excess benefit transaction is any 

transaction in which:

1. An economic benefit is provided 

by the organization directly or indirectly 

to or for the use of, any disqualified 

person, if the value of the economic 

benefit provided exceeds the value of 

the consideration (including the 

performance of services) received for 

providing such benefit, or

2. The amount of any economic 

benefit provided to, or for the use of, a 

disqualified person is determined in 

whole or in part by the revenues of the 

organization and violates the private 

inurement prohibition rules (to the extent 

provided in regulations).

Until final regulations are issued 

regarding the special rules for 

revenue sharing transactions 

described in 2 above, these transactions 

will only be subject to section 4958 

liability under the general rule described 

in 1 above.

Supporting organization 

transactions occurring after July 25, 

2006. For any supporting organization, 

as defined in section 509(a)(3), any 

grant, loan, compensation, or other 

similar payment provided to a 

substantial contributor (defined later), 

family member, or 35% controlled entity 

will be considered an excess benefit 

transaction. The amount of the excess 

benefit is the amount of such grant, 

CAUTION

!

loan, compensation, or other similar 

payment. Also, any loan provided to a 

disqualified person that isn't an 

organization described in section 509(a)

(1), (2), or (4) or a supported 

organization of the supporting 

organization exempt under section 

501(c)(4), (5), (6) and described in the 

last sentence of section 509(a) is 

considered an excess benefit 

transaction.

Donor advised fund transactions 

occurring after August 17, 2006. Any 

grant, loan, compensation, or other 

similar payment from any donor advised 

fund to a donor, donor advisor, family 

member, or 35% controlled entity is an 

excess benefit transaction. The amount 

of the excess benefit is the amount of 

such grant, loan, compensation, or other 

similar payment.

Excess benefit. Excess benefit 

means the excess of the economic 

benefit received from the applicable 

organization over the consideration 

given (including services) by a 

disqualified person, except in the 

immediately preceding special rules 

where the entire amount of the grant, 

loan, compensation, or other similar 

payment is considered the excess 

benefit.

However, an economic benefit won't 

be treated as compensation for services 

unless the applicable organization 

clearly indicates its intent to treat the 

economic benefit (when paid) as 

compensation for a disqualified person's 

services. See Regulations section 

53.4958-4(c) for more information.

Exception. Generally, section 4958 

doesn't apply to any fixed payment 

made to a person under an initial 

contract. See Regulations section 

53.4958-4(a)(3) for details.

Special rule. The initial and additional 

taxes of this section don't apply if the 

transaction described in 1 under Excess 

benefit transaction was pursuant to a 

written contract in effect on September 

13, 1995, and at all times after that date 

until the time that the transaction occurs.

However, if a written contract is 

materially modified, it is treated as a 

new contract entered into as of the date 

of the material modification. A material 

modification includes amending the 

contract to extend its term or to increase 

the compensation payable to a 

disqualified person.

Disqualified person. For purposes of 

this Schedule I, a disqualified person 

means:

Instructions for Form 4720 (2023) -15-
1. Any person (at any time during 

the 5-year period ending on the date of 

the transaction) in a position to exercise 

substantial influence over the affairs of 

the organization,

2. A family member of an individual 

described in 1 above, and

3. A 35% controlled entity of a 

person described in 1 or 2 above.

Family members. Family members 

of a disqualified person described in 1 

above include a disqualified person's 

spouse, ancestors, children, 

grandchildren, great grandchildren, and 

brothers and sisters (whether by wholeor half-blood). It also includes the 

spouse of the children, grandchildren, 

great grandchildren, brothers, or sisters 

(whether by whole- or half-blood).

35% controlled entity. The term 

35% controlled entity means:

• A corporation in which a disqualified 

person described in 1 or 2 above owns 

more than 35% of the total combined 

voting power,

• A partnership in which such persons 

own more than 35% of the profits 

interest, or

• A trust or estate in which such 

persons own more than 35% of the 

beneficial interest.

In determining the holdings of a 

business enterprise, any stock or other 

interest owned directly or indirectly shall 

apply.

For donor advised funds, sponsoring organizations, and certain supporting organization transactions 

occurring after August 17, 2006. The 

following persons will be considered 

disqualified persons along with certain 

family members and 35% controlled 

entities associated with them:

• Donors of donor advised funds,

• Donor advisors of donor advised 

funds,

• Investment advisors of sponsoring 

organizations, and

• Disqualified persons of a section 

509(a)(3) supporting organization for the 

organizations that organization 

supports.

For certain supporting 

organization transactions occurring 

after July 25, 2006. Substantial 

contributors to supporting organizations 

will also be considered disqualified 

persons along with their family members 

and 35% controlled entities.

Donor advised fund. See the 

Schedule K instructions for a definition 

of donor advised fund.

Investment advisor. Investment 

advisor means for any sponsoring 

organization, any person compensated 

by such organization (but not an 

employee of such organization) for 

managing the investment of, or 

providing investment advice for assets 

maintained in donor advised funds 

maintained by such sponsoring 

organization.

Sponsoring organization. See the 

Schedule K instructions for a definition 

of sponsoring organization.

Substantial contributor. In 

general, a substantial contributor means 

any person who contributed or 

bequeathed an aggregate of more than 

$5,000 to the organization, if that 

amount is more than 2% of the total 

contributions and bequests received by 

the organization before the end of the 

tax year of the organization in which the 

contribution or bequest is received by 

the organization from such person. A 

substantial contributor includes the 

grantor of a trust.

Specific Instructions

Part I. List each excess benefit 

transaction in Part I, column (d). Enter 

the date of the transaction in column (b) 

and the amount of the excess benefit in 

column (e). Compute the tax on the 

excess benefit for disqualified persons 

and enter it in column (f). Compute any 

tax on the excess benefit for 

organization managers and enter the 

amount in column (g). The organization 

reporting one or more excess benefit 

transactions should not carry totals from 

column (f) or column (g) to Part II, line 6.

An excess benefit transaction is 

corrected by undoing the excess benefit 

to the extent possible and taking any 

additional measures necessary to place 

the organization in a financial position 

not worse than that in which it would be 

if the disqualified person had been 

dealing under the highest fiduciary 

standards, except that in the case of any 

correction of an excess benefit 

transaction involving a donor advised 

fund no amount repaid in a manner 

prescribed by the Secretary may be 

held in any donor advised fund. In 

column (c), for each act of excess 

benefit transaction in Part I, indicate 

whether the act has been corrected. 

Answer “Yes,” if correction has been 

made in whole or in part. Answer “No,” 

only if the transaction has not been 

corrected in any way.

• If correction has been made, provide 

a detailed description of any correction 

made, and the date of each correction. If 

correction is partial, explain why 

complete correction has not been made. 

If correction is made in more than one 

transaction, describe each transaction 

separately.

• If correction has not been made, 

provide a detailed explanation of why 

correction hasn't been made and what 

steps are being taken to make the 

correction.

For organization managers, the tax is 

the lesser of 10% of the excess benefit 

or $20,000. This tax is computed on 

each transaction.

Part II. Enter in column (a) the names 

of all disqualified persons who took part 

in the excess benefit transactions. If 

more than one disqualified person took 

part in an excess benefit transaction, 

each is individually liable for the entire 

tax on the transaction. But the 

disqualified persons who are liable for 

the tax may prorate the payment among 

themselves. Enter in column (c) the tax 

to be paid by each disqualified person.

Carry the total amount in column (d) 

for each disqualified person to Part II, 

line 6.

Part III. Enter in column (a) the names 

of all managers who knowingly took part 

in the excess benefit transactions listed 

in Part I. If more than one manager 

knowingly took part in an excess benefit 

transaction, each is individually liable for 

the entire tax in connection with the 

transaction. But the managers liable for 

the tax may prorate the payment among 

themselves. Enter in column (c) the tax 

to be paid by each organization 

manager.

A manager filing this Form 4720 

should carry the appropriate amount in 

column (d) to Part II, line 6.

Schedule J—Taxes on 

Being a Party to Prohibited 

Tax Shelter Transactions 

(Section 4965)

General Instructions

Requirement. 

1. Complete Schedule J if you are 

an entity described in section 501(c), 

501(d), or 170(c) (other than the United 

States) or an Indian tribal government 

(within the meaning of section 7701(a)

(40)) and you received proceeds from or 

have net income attributable to a 

prohibited tax shelter transaction 

(PTST).

2. Complete Schedule J if you are 

an entity manager of such an entity who 

-16- Instructions for Form 4720 (2023)
approved the entity listed in section 

4965(c) as (or otherwise caused the 

entity to be) a party to a PTST at any 

time during the tax year and who knew 

(or had reason to know) that the 

transaction is a PTST.

See the following guidance and any 

future guidance for details.

• Notice 2006-65, 2006-31 I.R.B. 102;

• Notice 2007-18, 2007-9 I.R.B. 608;

• T.D. 9334, 2007-34 I.R.B. 382; and

• T.D. 9492, 2010-33 I.R.B. 242.

Managers of tax favored 

retirement plans, individual 

retirement arrangements, and 

savings arrangements described in 

sections 401(a), 403(a), 403(b), 529, 

457(b), 408(a), 220(d), 408(b), 530, or 

223(d) must report and pay tax due 

under section 4965(a)(2) on Form 5330.

Prohibited tax shelter transaction. In 

general, a prohibited tax shelter 

transaction means any listed transaction 

(including a subsequently listed 

transaction) and any prohibited 

reportable transaction.

Listed transaction. A listed 

transaction includes any transaction that 

is the same as or substantially similar to 

one of the types of transactions that the 

IRS has determined to be a tax 

avoidance transaction. These 

transactions are identified by notice, 

regulation, or other form of published 

guidance as a listed transaction. For 

existing guidance, see Notice 2009-59, 

2009-31 I.R.B. 170.

For updates to this list, go to the IRS 

website at IRS.gov/businesses/

corporations/abusive-tax-shelters-andtransactions. The listed transactions in 

the above notices and rulings will also 

be periodically updated in future issues 

of the Internal Revenue Bulletin.

Subsequently listed transaction. 

A subsequently listed transaction is a 

transaction that is identified in published 

guidance as a listed transaction after 

the entity has entered into the 

transaction and that was not a 

confidential transaction or transaction 

with contractual protection at the time 

the entity entered into the transaction.

Prohibited reportable transaction. A 

prohibited reportable transaction is any 

confidential transaction or any 

transaction with contractual protection 

that is a reportable transaction. See 

Regulations sections 1.6011-4(b)(3) 

and (4), and the Instructions for Form 

8886-T, Disclosure by Tax-Exempt Entity 

Regarding Prohibited Tax Shelter 

Transaction, for more information.

TIP

Allocation of net income and proceeds to a tax year. The net income 

and proceeds attributable to a 

prohibited tax shelter transaction must 

be allocated to a particular tax year in a 

manner consistent with the entity's 

established method of accounting for 

federal income tax purposes. If an entity 

hasn't established a method of 

accounting for federal income tax 

purposes, the entity must use the cash 

receipts and disbursements method to 

determine the amount and timing of net 

income and proceeds attributable to a 

prohibited tax shelter transaction.

If an entity has an established 

method of accounting other than the 

cash method, the entity may use the 

cash method to determine the amount 

of the net income and proceeds 

attributable to a prohibited tax shelter 

transaction.

Specific Instructions

Part I. Complete this part for each 

transaction if during the tax year the 

entity received proceeds from or has net 

income attributable to a PTST.

Figure the tax for each transaction as 

follows.

• If column (e) was answered “Yes,” 

then enter the larger of the column (f) or 

column (g) amount in column (h).

• If column (e) was answered “No,” then 

multiply the larger of the amount in 

column (f) or column (g) by 21% (0.21) 

and enter the result in column (h).

After the tax has been figured for all 

PTSTs entered on Schedule J, then total 

column (h) and enter the amount on the 

Total line and on line 9 of Part I.

Part II. Enter in column (a) the names 

of all entity managers who approved the 

entity as (or otherwise caused the entity 

to be) a party to a PTST at any time 

during the tax year and who knew or 

had reason to know that the transaction 

is a PTST.

A manager filing this Form 4720 

should carry the appropriate amount in 

column (d) to Part II, line 7.

Schedule K—Taxes on 

Taxable Distributions of 

Sponsoring Organizations 

Maintaining Donor 

Advised Funds (Section 

4966)

General Instructions

Requirement. Complete Schedule K if 

you answered “Yes,” to question 9a in 

Part V of Form 990, or if you are a fund 

manager of a sponsoring organization 

who agreed to the making of a taxable 

distribution knowing that it was a taxable 

distribution. Report each taxable 

distribution separately. These terms are 

discussed below.

Taxable distribution. A taxable 

distribution is any distribution from a 

donor advised fund to any natural 

person or to any other person if:

1. The distribution is for any purpose 

other than one specified in section 

170(c)(2)(B), or

2. The sponsoring organization 

maintaining the donor advised fund 

doesn't exercise expenditure 

responsibility with respect to such 

distribution in accordance with section 

4945(h).

However, a taxable distribution 

doesn't include a distribution from a 

donor advised fund to:

1. Any organization described in 

section 170(b)(1)(A) (other than a 

disqualified supporting organization),

2. The sponsoring organization of 

such donor advised fund, or

3. Any other donor advised fund.

Sponsoring organization. A 

sponsoring organization is a section 

170(c) organization that isn't a 

government organization (as referred to 

in section 170(c)(1) and (2)(A)) or a 

private foundation and maintains one or 

more donor advised funds.

Donor advised fund. A donor advised 

fund is a fund or account:

1. Which is separately identified by 

reference to contributions of a donor or 

donors,

2. Which is owned and controlled by 

a sponsoring organization, and

3. For which the donor (or any 

person appointed or designated by the 

donor) has or expects to have advisory 

privileges concerning the distribution or 

investment of the funds held in the 

donor advised funds or accounts 

because of the donor's status as a 

donor.

Exception. A donor advised fund 

doesn't include: 

1. A fund or account that makes 

distributions only to a single identified 

organization or governmental entity, or

2. Any fund or account with respect 

to which a donor or donor advisor (as 

defined in the Schedule L instructions) 

gives advice about which individuals 

Instructions for Form 4720 (2023) -17-
receive grants for travel, study, or similar 

purposes, if:

a. Such person's advisory privileges 

are performed exclusively by such 

person in their capacity as a committee 

member of which all the committee 

members are appointed by the 

sponsoring organization,

b. No combination of donors, donor 

advisors, or persons related (as defined 

in the Schedule L instructions) to donors 

or donor advisors, directly or indirectly 

control the committee, and

c. All grants from the fund or 

account are awarded on an objective 

and nondiscriminatory basis according 

to a procedure approved in advance by 

the board of directors of the sponsoring 

organization. The procedure must be 

designed to ensure that all grants meet 

the requirements of section 4945(g)(1), 

(2), or (3).

Tax on sponsoring organization. A 

tax of 20% of the amount of each 

taxable distribution is imposed on the 

sponsoring organization.

Tax on fund manager. If a tax is 

imposed on a taxable distribution of the 

sponsoring organization, a tax of 5% of 

the distribution will be imposed on any 

fund manager who agreed to the 

distribution knowing that it was a taxable 

distribution. Any fund manager who took 

part in the distribution and is liable for 

the tax must pay the tax. The maximum 

amount of tax on all fund managers for 

any one taxable distribution is $10,000. 

If more than one fund manager is liable 

for tax on a taxable distribution, all such 

managers are jointly and severally liable 

for the tax.

Specific Instructions

Part I. Complete this part for all taxable 

distributions.

Part II. Enter in column (a) the names 

of all fund managers who agreed to 

make the taxable distribution. If more 

than one fund manager is listed in 

column (a) for one distribution, each is 

individually liable for the entire tax in 

connection with that distribution. 

However, the fund managers who are 

liable for the tax may prorate the 

payment among themselves. Enter in 

column (c) the tax each manager will 

pay for each distribution for which such 

manager owes a tax.

A fund manager filing this Form 4720 

should carry the apportioned amount in 

column (d) to Part II, line 8.

Schedule L—Taxes on 

Prohibited Benefits 

Distributed From Donor 

Advised Funds (Section 

4967)

General Instructions

Requirement. A sponsoring 

organization of donor advised funds that 

answered “Yes,” to Form 990, Part V, 

line 9b, or that otherwise distributed 

prohibited benefits under section 4967, 

must complete Schedule L. In addition, 

a donor, donor advisor, or related party 

that (1) advised a distribution that 

provided a prohibited benefit under 

section 4967, or (2) that received such a 

benefit, and any fund manager who 

agreed to the distribution knowing that it 

would confer a prohibited benefit, must 

complete Schedule L. Report each 

distribution separately. Complete Parts I, 

II, and III of Schedule L only in 

connection with distributions made by a 

sponsoring organization from a donor 

advised fund which results in a 

prohibited benefit. (See the instructions 

for Schedule K for definitions of the 

terms sponsoring organization and 

donor advised fund). An organization 

reporting a prohibited benefit on 

Schedule L is not liable for the tax and 

should not report any tax amount on 

Part II, line 9.

Prohibited benefit. If any donor, donor 

advisor, or related party advises the 

sponsoring organization about making a 

distribution which results in a donor, 

donor advisor, or related party receiving 

(either directly or indirectly) a more than 

incidental benefit, then such benefit is a 

prohibited benefit.

Donor advisor. A donor advisor is any 

person appointed or designated by a 

donor to advise a sponsoring 

organization on the distribution or 

investment of amounts held in the 

donor's fund or account.

Related party. A related party includes 

any family member or 35% controlled 

entity. See the General Instructions for 

Schedule I for a definition of those 

terms.

Tax on donor, donor advisor, or related person. A tax of 125% of the 

benefit resulting from the distribution is 

imposed on both the party who advised 

as to the distribution (which might be a 

donor, donor advisor, or related party) 

and the party who received such benefit 

(which might be a donor, donor advisor, 

or related party). The advisor and the 

party who received the benefit are jointly 

and severally liable for the tax.

Tax on fund managers. If a tax is 

imposed on a prohibited benefit 

received by a donor, donor advisor, or 

related person, a tax of 10% of the 

amount of the prohibited benefit is 

imposed on any fund manager who 

agreed to the distribution knowing that it 

would confer a prohibited benefit. Any 

fund manager who took part in the 

distribution and is liable for the tax must 

pay the tax. The maximum amount of 

tax on all fund managers for any one 

taxable distribution is $10,000. If more 

than one fund manager is liable for tax 

on a taxable distribution, all such 

managers are jointly and severally liable 

for the tax.

Exception. If a tax is imposed under 

section 4958 for the same transaction, 

then no additional tax is imposed under 

section 4967 on that transaction.

Specific Instructions

Part I. Complete this part for all 

prohibited benefits.

Part II. Enter in column (a) the names 

of all donors, donor advisors, and 

related persons who received a 

prohibited benefit or advised as to the 

distribution of such benefit. If more than 

one donor, donor advisor, or related 

person is listed in column (a) for one 

distribution, each is individually liable for 

the entire tax for that distribution. 

However, the donors, donor advisors, or 

related persons who are liable for the 

tax may prorate the payment among 

themselves. Enter in column (c) the tax 

each donor, donor advisor, or related 

person will pay for each distribution for 

which such donor, donor advisor, or 

related person owes a tax.

A donor, donor advisor, or related 

person filing this Form 4720 should 

carry the apportioned amount in 

Schedule L, Part II, column (d) to Part II, 

line 9.

Part III. Enter in column (a) the names 

of all fund managers who agreed to 

make the distribution conferring the 

prohibited benefit. If more than one fund 

manager is listed in column (a) for one 

distribution, each is individually liable for 

the entire tax for that distribution. 

However, the fund managers who are 

liable for the tax may prorate the 

payment among themselves. Enter in 

column (c) the tax each donor advisor, 

or related person will pay for each 

distribution for which such donor, donor 

advisor, or related person owes a tax.

-18- Instructions for Form 4720 (2023)
A fund manager filing this Form 4720 

should carry the total amount in 

Schedule L, Part III, column (d) to Part II, 

line 9.

Schedule M—Tax on 

Hospital Organization for 

Failure to Meet the 

Community Health Needs 

Assessment Requirements 

(Sections 4959 and 501(r)

(3))

General Instructions

Requirements. Section 4959 imposes 

an excise tax on hospital organizations 

that fail to meet the section 501(r)(3) 

requirements in any tax year.

Section 501(r)(3) requirements 

pertain to a hospital organization 

conducting a community health needs 

assessment (CHNA). The requirements, 

which apply separately to each hospital 

facility the hospital organization 

operates, are as follows.

1. To conduct a CHNA this tax year, 

or in either of the 2 prior tax years. The 

CHNA must take into account input from 

persons who represent the broad 

interests of the community served by 

the hospital facility, including people 

with special knowledge of or expertise in 

public health. The CHNA must be made 

widely available to the public.

2. To adopt an implementation 

strategy to meet the community health 

needs identified through the CHNA.

See Notice 2011-52, 2011-30 I.R.B. 

60; Final Regulations, T.D. 9708, 79 

Fed. Reg. 78954 (Dec. 31, 2014), 

2012-32 I.R.B. 126; Notice 2014-2, 

2014-3 I.R.B. 407; Notice 2014-3, 

2014-3 I.R.B. 408; as well as any future 

related guidance for details. For 

additional information on the CHNA 

requirements, see Schedule H (Form 

990), Hospitals, Part V, Section B.

Specific Instructions

Part I. For each hospital facility, list the 

following information in the relevant 

column: (b) name of facility, (c) 

description of the failure to meet section 

501(r)(3), (d) tax year hospital facility 

last conducted a CHNA, and (e) tax 

year hospital facility last adopted an 

implementation strategy.

Part II. On line 1 enter the number of 

hospital facilities operated by the 

hospital organization that failed to meet 

the CHNA requirements of section 

501(r)(3). Enter $50,000 multiplied by 

line 1 on line 2 and on Part I, line 12. 

This is the CHNA excise tax under 

section 4959.

Schedule N—Tax on 

Excess Executive 

Compensation (Section 

4960)

General Instructions

Requirement. Complete Schedule N if 

you answered “Yes” to question 15 in 

Part V of Form 990, question 8 of Part 

VI-B of Form 990-PF, or if you are an 

ATEO (as defined earlier) or a related 

organization but only if you are liable for 

the tax under section 4960(a). Section 

4960(a) imposes an excise tax of 21% 

on the amount of remuneration paid by 

an ATEO with respect to employment of 

any covered employee in excess of $1 

million and on any excess parachute 

payment paid by such organization to 

any covered employee.

Note. You may be required to file 2 

Form 4720 returns if you are a related 

organization liable for the tax under 

section 4960(a), which is reported on 

Part I, line 13, and you are a disqualified 

person or organization manager of the 

organization with respect to which you 

are a related organization and you are 

liable for a Chapter 41 or 42 excise tax 

as a disqualified person or organization 

manager, which is reported on Part II. 

See the instructions for Page 1, 

Question B, earlier.

Form 4720, Schedule N, is used 

to report and pay any section 

4960 tax owed. Because there 

is no requirement to make estimated tax 

payments for the section 4960 tax, Form 

990-W does not apply to the section 

4960 tax.

Covered employee. A covered 

employee means any employee of an 

ATEO (including any former employee) 

that is one of the ATEO’s five highest 

compensated employees for the tax 

year or was the ATEO’s (or a 

predecessor’s) covered employee for 

any preceding tax year beginning after 

2016.

Remuneration. Remuneration means 

wages (as defined in section 3401(a)). 

Remuneration also includes amounts 

required to be included in gross income 

under section 457(f). Remuneration 

shall be treated as paid when there is no 

substantial risk of forfeiture (within the 

meaning of section 457(f)(3)(B)) of the 

rights to such remuneration.

TIP

Remuneration exceptions. For 

purposes of this provision, remuneration 

does not include:

• Designated Roth contributions (as 

defined in section 402A(c)),

• The portion of any remuneration paid 

to a licensed medical professional 

(including a veterinarian) which is for the 

performance of medical or veterinary 

services by such professional, or

• Remuneration the deduction for 

which is not allowed by reason of 

section 162(m).

Remuneration from related 

organizations. Remuneration of a 

covered employee by an ATEO includes 

any remuneration paid with respect to 

employment of such employee by any 

related person or governmental entity, 

whether taxable or tax-exempt.

For this purpose, a person or 

governmental entity is related to an 

ATEO if it:

• Controls, or is controlled by, the 

ATEO;

• Is controlled by one or more persons 

who control the ATEO;

• Is a supported organization (as 

defined in section 509(f)(3)) or 

supporting organization (as defined in 

section 509(a)(3)) with respect to the 

ATEO during the taxable year; or

• In the case of an ATEO that is a 

section 501(c)(9) voluntary employees’ 

beneficiary association (VEBA), 

establishes, maintains, or makes 

contributions to the ATEO.

Liability for tax in case of 

remuneration from more than one 

employer. In any case in which 

remuneration from more than one 

employer is taken into account under 

the rule above, each related employer is 

liable for the tax in an amount which 

bears the same ratio to the total tax as 

the ratio of (1) the amount of 

remuneration that employer paid with 

respect to such employee, to (2) the 

amount of remuneration paid by all 

related employers to the employee. 

Each related employer must file their 

own Form 4720, complete Schedule N 

and report their ratable share of tax on 

Part I, line 13.

Excess parachute payment. For 

purposes of this provision, an excess 

parachute payment equals the excess of 

any parachute payment over the portion 

of the base amount allocated to such 

payment.

Parachute payment. A parachute 

payment is any payment in the nature of 

compensation to (or for the benefit of) a 

covered employee if the payment:

Instructions for Form 4720 (2023) -19-
• Is contingent on such employee’s 

separation from the employment with 

the employer, and

• Has an aggregate present value of 

the payments in the nature of 

compensation to (or for the benefit of) 

such individual which are contingent on 

such separation that equals or exceeds 

three times the base amount.

Base amount. Rules similar to the 

rules of section 280G(b)(3) shall apply 

for purposes of determining the base 

amount.

Property transfers. Rules similar to 

the rules of section 280G(d)(3) and (4) 

shall apply to property transfers.

Exception from excess parachute 

payments. An excess parachute 

payment does not include any 

payments:

• Described in section 280G(b)(6) 

(relating to exemption for payments 

under qualified plans),

• Made under or to an annuity contract 

described in section 403(b) or a plan 

described in section 457(b),

• To a licensed medical professional 

(including a veterinarian) to the extent 

that such payment is for the 

performance of medical or veterinary 

services by such professional, or

• To an individual who is not a highly 

compensated employee as defined in 

section 414(q).

Specific Instructions

Enter in column (b) the name of each 

covered employee who was paid more 

than $1 million in renumeration or was 

paid an excess parachute payment 

during the year. If more than five 

covered employees, attach a statement 

with the information required by the 

schedule and show the total amounts 

for column (e) on line 6.

For each covered employee reported 

in column (b), enter in column (c) the 

amount of remuneration you paid that 

exceeded $1 million. Do not include any 

excess parachute payment reported in 

column (d). If remuneration from related 

employer(s) was taken into account in 

determining that remuneration 

exceeded $1 million, enter your 

proportional share of the amount of 

remuneration that exceeded $1 million, 

based on your proportional share of 

total remuneration paid to the covered 

employee. Also, attach a statement to 

Form 4720 with the name and EIN of the 

related employer(s).

For each covered employee reported 

in column (b), enter in column (d) the 

amount of any excess parachute 

payment you paid.

For each covered employee reported 

in column (b), enter in column (e) the 

sum of columns (c) and (d).

Schedule O—Excise Tax 

on Net Investment Income 

of Private Colleges and 

Universities (Section 4968)

General Instructions

Requirement. An applicable 

educational institution that answered 

“Yes” to Form 990, Part V, line 16, or that 

is otherwise subject to the section 4968 

tax on net investment income, must 

complete Schedule O.

Organizations subject to the section 

4968 excise tax. A private college or 

university is subject to a 1.4% excise tax 

on net investment income under section 

4968 if all four of the following threshold 

tests are met.

• The organization must be an eligible 

educational institution (as defined in 

section 25A(f)(2)). Section 25A(f)(2) 

defines “eligible educational institution” 

as an institution that is described in 

section 481 of the Higher Education Act 

of 1965 (20 U.S.C. section 1088), as in 

effect on August 5, 1997; and is eligible 

to participate in a program under Title IV 

of such Act (20 U.S.C. sections 1070 et 

seq.).

• The organization must have had at 

least 500 tuition-paying students, based 

upon a daily average student count, 

during the preceding tax year.

• More than 50% of those students 

must have been located in the United 

States.

• The aggregate fair market value, at 

the end of the preceding tax year, of the 

assets not used directly in carrying out 

the organization’s exempt purpose, held 

by the organization and related 

organizations, must be at least 

$500,000 per student.

Form 4720, Schedule O, is used 

by applicable educational 

institutions to report and pay 

any section 4968 tax owed. Because 

there is no requirement to make 

estimated tax payments for the section 

4968 tax, Form 990-W does not apply to 

the section 4968 tax.

Related organizations. The net 

investment income of related 

organizations is taken into account 

under certain circumstances. Section 

TIP

4968 defines “related organization” to 

include only the following organizations.

• Organizations that control or are 

controlled by the educational institution.

• Organizations that are controlled by 

one or more of the same persons who 

control the educational institution.

• A supported organization (as defined 

in section 509(f)(3)) during the tax year 

with respect to the educational 

institution.

• Supporting organizations described 

in section 509(a)(3) during the tax year 

with respect to the educational 

institution.

When calculating the net investment 

income of a related organization, 

exclude (1) net investment income of 

any related organization to the extent 

that such net investment income is 

taken into account with respect to 

another educational institution; and (2) 

net investment income from assets that 

are not intended, or are not available for 

the use or benefit of the educational 

institution, unless the related 

organization is controlled by the 

educational institution, or unless the 

related organization is a supporting 

organization with respect to the 

educational institution.

Net investment income. Net 

investment income is the amount by 

which the sum of the gross investment 

income and the capital gain net income 

exceeds the administrative expenses 

allocable to gross investment income 

and capital gain net income.

To determine net investment income, 

including certain exceptions to gross 

investment income and modifications to 

allowable deductions, see Regulations 

section 53.4968-2.

Basis. As described in Regulations 

section 53.4968-2(d)(2), in the case of 

property held by an applicable 

educational institution on December 31, 

2017, and continuously thereafter to the 

date of its disposition, the basis for 

determining gain shall be deemed not to 

be less than the fair market value of 

such property on December 31, 2017, 

plus or minus all adjustments after 

December 31, 2017, and before the 

date of disposition consistent with the 

regulations under section 4940(c). 

However, for purposes of determining 

loss, basis rules that are consistent with 

the regulations under section 4940(c) 

will apply.

Modified capital gain net income. 

Column (d) can reflect capital losses 

from sales or other dispositions of 

property in one organization only to the 

-20- Instructions for Form 4720 (2023)
extent of capital gains from such sales 

or other dispositions in all the other 

organizations (modified capital gain net 

income). See Regulations section 

53.4968–2. Amounts listed in column 

(d), for the filing organization and any 

related organization, may indicate a net 

loss. However, the amount carried to 

line 6, column (d) must be the greater of 

the modified capital gain net income or 

zero. Do not take into account capital 

loss carrybacks. Capital loss carryovers 

are allowed.

Specific Instructions

Line 1. Use Line 1 to report the gross 

investment income , capital gain net 

income (or loss), and associated 

allocable administrative expenses of the 

filing organization.

Lines 2–5. Use Lines 2–5 to report the 

gross investment income, capital gain 

net income (or loss), and associated 

allocable administrative expenses from 

related organizations during the related 

organizations’ tax years that end with or 

within the tax year of the organization. If 

a related organization is a partner in a 

partnership or a shareholder of an S 

corporation, include the pertinent items 

of income, gain, loss, or deduction from 

the entity's Schedule K-1 (Form 1065 or 

1120-S) for the tax year of the entity 

ending with or within the tax year of the 

filing organization.

Report income from related 

organizations in descending order from 

most income to least income. If there 

are more than three related 

organizations, attach a schedule to your 

Form 4720 showing the information for 

columns (a) through (e) for each related 

organization and enter the total amounts 

from the schedule in line 5, columns (c) 

through (e).

Line 6. Total the amounts in columns 

(c), (d), and (e). See Notice 2018-55, 

2018-26 I.R.B. 773.

Add 6(c) and 6(d), subtract 6(e), and 

enter the total in 6(f).

Line 7. Multiply line 6(f) by 0.014 

(1.4%) and enter the amount in box 7f 

and on Part I, line 14.

Paid Preparer

Generally, anyone who is paid to 

prepare the return must sign the return 

and fill in the other blanks in the Paid 

Preparer Use Only area. An employee 

of the filing organization isn't a paid 

preparer.

The paid preparer must:

• Sign the return in the space provided 

for the preparer's signature,

• Enter the preparer information,

• Enter the preparer tax identification 

number (PTIN), and

• Give a copy of the return to the 

organization, in addition to the copy to 

be filed with the IRS.

Any paid preparer whose 

identifying number must be 

listed on Form 990-PF can 

apply for and obtain a PTIN. You can 

apply for a PTIN online or by filing Form 

W-12, IRS Paid Preparer Tax 

Identification Number (PTIN) 

Application and Renewal. For more 

information about applying for a PTIN 

online, visit the IRS website at IRS.gov/

PTIN.

Paid Preparer Authorization

On the “Sign Here” line, check “Yes,” if 

the IRS can contact the paid preparer 

who signed the return to discuss the 

return. This authorization applies only to 

the individual whose signature appears 

in the Paid Preparer Use Only section of 

Form 4720. It doesn't apply to the firm, if 

any, shown in that section.

By checking the “Yes” box, the 

organization is authorizing the IRS to 

contact the paid preparer to answer any 

questions that arise during the 

processing of the return. The 

organization is also authorizing the paid 

preparer to:

• Give the IRS any information missing 

from the return;

• Call the IRS for information about 

processing the return; and

• Respond to certain IRS notices about 

math errors, offsets, and return 

preparation.

The organization isn't authorizing the 

paid preparer to bind the organization to 

anything or otherwise represent the 

organization before the IRS.

The authorization will automatically 

end no later than the due date 

(excluding extensions) for filing of the 

organization's 2024 Form 4720. If the 

organization wants to expand the paid 

preparer's authorization or revoke it 

before it ends, see Pub. 947, Practice 

Before the IRS and Power of Attorney.

Check “No,” if the IRS should contact 

the organization listed on the first page 

of the Form 4720, rather than the paid 

preparer.

Phone Help

If you have questions and/or need help 

completing this form, please call 

877-829-5500. This toll-free telephone 

CAUTION

!

service is available Monday through 

Friday.

Photographs of Missing 

Children

The Internal Revenue Service is a proud 

partner with the National Center for 

Missing & Exploited Children® 

(NCMEC). Photographs of missing 

children selected by the Center may 

appear in instructions on pages that 

would otherwise be blank. You can help 

bring these children home by looking at 

the photographs and calling 

1-800-THE-LOST (1-800-843-5678) if 

you recognize a child.

How To Get Forms and 

Publications

Internet. You can access the IRS 

website 24 hours a day, 7 days a week, 

at IRS.gov to:

• Download forms, including talking tax 

forms, instructions, and publications.

• Order IRS products online.

• Research your tax questions online.

• Search publications online by topic or 

keyword.

• Sign up to receive local and national 

tax news by email.

• You can order forms and publications 

by downloading from the IRS website at 

IRS.gov/OrderForms.

IRS e-Services Makes 

Taxes Easier

Now more than ever before, businesses 

can enjoy the benefits of filing and 

paying their federal taxes electronically. 

Whether you rely on a tax professional 

or handle your own taxes, the IRS offers 

you convenient programs to make taxes 

easier. Use these electronic options to 

make filing and paying easier.

• You can efile your Form 990 or Form 

990-PF; Form 940 and 941 employment 

tax returns; Forms 1099; and other 

information returns. Visit IRS.gov/E-File 

for details. For tax years beginning on or 

after July 2, 2019, section 3101 of P.L. 

116-25 requires that returns by exempt 

organizations be filed electronically. 

Organizations filing Form 990 or Form 

990-PF for a tax year beginning on or 

after July 2, 2019 must file the return 

electronically. For tax years ending on or 

after July 31, 2021, Form 990-EZ must 

also be filed electronically. Limited 

exceptions apply. See When, Where, 

and How To File, in the Instructions for 

Form 990, Form 990-PF or 990–EZ for 

more information.

• You can pay taxes online or by phone 

using the free Electronic Federal Tax 

Form 4720 Instructions -21-
Payment System (EFTPS). Visit 

EFTPS.gov or call 1-800-555-4477 for 

details. Electronic Funds Withdrawal 

(EFW) from a checking or savings 

account is also available to those who 

file electronically.

Privacy Act and Paperwork Reduction Act Notice. We ask for the 

information on this form to carry out the 

Internal Revenue laws of the United 

States. You are required to give us the 

information. We need it to ensure that 

you are complying with these laws and 

to allow us to figure and collect the right 

amount of tax. Certain individuals who 

owe tax under Chapter 41 or 42 of the 

Internal Revenue Code, and who don't 

sign the Form 4720 of the foundation or 

organization, must file a separate Form 

4720 showing the tax owed and the 

name of the foundation or organization 

for which they owe tax. Sections 6001 

and 6011 of the Internal Revenue Code 

require you to provide the requested 

information if the tax applies to you. 

Section 6109 requires you to provide 

your identifying number. Routine uses of 

this information include disclosing it to 

the Department of Justice for civil and 

criminal litigation and to other federal 

agencies, as provided by law. We may 

disclose the information to cities, states, 

the District of Columbia, and U.S. 

Commonwealths and territories to 

administer their laws. We may also 

disclose this information to other 

countries under a tax treaty, to federal 

and state agencies to enforce federal 

nontax criminal laws, or to federal law 

enforcement and intelligence agencies 

to combat terrorism. If you don't file this 

information, you may be subject to 

interest, penalties, and/or criminal 

prosecution.

You aren’t required to provide the 

information requested on a form that is 

subject to the Paperwork Reduction Act 

unless the form displays a valid OMB 

control number. Books or records 

relating to a form or its instructions must 

be retained as long as their contents 

may become material in the 

administration of any Internal Revenue 

law. Generally, tax returns and return 

information are confidential, as required 

by section 6103. However, certain 

returns and return information of tax 

exempt organizations and trusts are 

subject to public disclosure and 

inspection, as provided by section 6104.

The time needed to complete and file 

this form will vary depending on 

individual circumstances. The estimated 

burden for tax exempt organizations 

filing this form is approved under OMB 

control number 1545-0047 and is 

included in the estimates shown in the 

instructions for their information return.

-22- Instructions for Form 4720 (2023)
Index

A

Amended return 6

Attorney 21

D

Disqualified person 15

Donor advised funds 17, 

18

E

Excess business holdings:

Exceptions to tax 10

Schedule C 9

Extension 4

F

Filing requirements:

When to file 4

Where and How to file 3

Who must file 2

Foreign Organizations or 

U.S. Territory 4

I

Initial Taxes on Excess 

Benefit Transactions:

disqualified person 15

donor advised funds 16

excess benefit 

transaction 15

section 4958 15

sponsoring 

organizations 16

supporting 

organizations 16

Initial taxes on 

investments that 

jeopardize charitable 

purpose:

section 4944 12

Initial taxes on political 

expenditures:

section 4955 13

Initial taxes on taxable 

expenditures:

section 4945 13

P

Paid Preparer 21

Paid Preparer 

Authorization 21

Preparer Tax identification 

Number (PTIN) 21

Publications:

Pub. 947, Practice Before 

the IRS and Power of 

Attorney 21

S

Schedule:

Schedule A; Initial Taxes 

on Self-Dealing 8

Schedule B; Initial Tax on 

Undistributed Income 9

Schedule C; Initial Tax on 

Excess Business 

Holdings 9

Schedule D; Initial Taxes 

on Investments That 

Jeopardize Charitable 

Purpose 12

Schedule E; Initial Taxes 

on Taxable 

Expenditures 13

Schedule F; Initial Taxes 

on Political 

Expenditures 13

Schedule G; Tax on 

Excess Lobbying 

Expenditures 14

Schedule H; Taxes on 

Disqualifying Lobbying 

Expenditures 14

Schedule I; Initial Taxes on 

Excess Benefit 

Transactions 15

Schedule J; Taxes on 

Being a Party to 

Prohibited Tax Shelter 

Transactions (Section 

4965) 16

Schedule K; Taxes on 

Taxable Distributions of 

Sponsoring 

Organizations 

Maintaining Donor 

Advised Funds 17

Schedule L; Taxes on 

Prohibited Benefits 

Distributed From Donor 

Advised Funds 18

Schedule M; Tax on 

Failure to Meet the 

Community Health 

Needs Assessment 

Requirements (Section 

501(r)(3)) 19

Schedule N; Tax on 

Excess Executive 

Compensation (Section 

4960) 19

Schedule O; Excess Tax 

on Net Investment 

Income of Private 

Colleges and 

Universities (Section 

4968) 20

Signature and 

Verification 4

Summary of Taxes 8

T

Tax on excess lobbying 

expenditures:

section 4911 14

Tax Payments 5

Taxes on being a party to 

Prohibited Tax Shelter 

Transactions:

listed transaction 17

section 4965 16

Taxes on disqualifying 

lobbying expenditures:

section 4912 14

Taxes on Managers, 

Self-Dealers, etc. 7

Taxes on Prohibited 

Benefits Distributed 

From Donor Advised 

Funds:

section 4967 18

Taxes on Taxable 

Distributions of 

Sponsoring 

Organizations 

Maintaining Donor 

Advised Funds:

section 4966 17

-23-