Instructions for Form 990-T (2006)

Instructions for Form 990-T - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

What's New

The larger deduction for contributions of certain food inventory and qualified book contributions to certain schools has been extended. See Line 20-Charitable Contributions on page 14.
A tax-exempt organization, government entity, Indian tribal government, and eligible pension plans that was billed after February 28, 2003, and before August 1, 2006, for the federal telephone excise tax on long distance or bundled service may request a credit for the tax paid by filing Form 990-T. See the instructions for line 44f on page 18.
The possessions tax credit under section 936 or section 30A has expired for most organizations for tax years beginning in 2006. For guidance on certain issues that may arise depending on the manner in which the business of the organization continues to be conducted after 2005, see Notice 2005-21, 2005-11. I.R.B. 727.
The Pension Protection Act of 2006 (PPA) requires section 501(c)(3) organizations to make their Form 990-T open for public inspection. This requirement does not apply to returns filed only to request a credit for federal telephone excise taxes paid.
The PPA excludes from unrelated business income qualifying specified payments received or accrued between January 1, 2006, and December 31, 2007. See the instructions for Schedule F beginning on page 21.
For tax years beginning in 2006, an organization that is an existing credit claimant with respect to American Samoa, may be able to claim the American Samoa economic development credit. See the Instructions for Form 5735.
For purposes of the allocation of accumulated earnings credit among components of a controlled group (brother-sister controlled group), a brother-sister group must only satisfy the more-than-50 percent requirement. The requirement that at least 80 percent of total combined voting power is not applicable.

Request for Credit of Federal Telephone Excise Tax Paid

If a tax-exempt organization, government entity, Indian tribal government, or eligible pension plan is filing Form 990-T only to request a credit for federal telephone excise taxes paid, go directly to instructions for line 44f on page 18. If you are uncertain whether your organization belongs to one of the categories listed above, please contact the IRS.

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 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.

Unresolved Tax Issues

If the organization has attempted to deal with an IRS problem unsuccessfully, it should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents the organization's interest and concerns within the IRS by protecting the rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that the organization's case is given a complete and impartial review.

The organization's assigned personal advocate will listen to its point of view and will work with the organization to address its concerns. The organization can expect the advocate to provide:

A “fresh look” at a new or ongoing problem.
Timely acknowledgment.
The name and telephone number of the individual assigned to its case.
Updates on progress.
Timeframes for action.
Speedy resolution.
Courteous service.

When contacting the Taxpayer Advocate, the organization should be prepared to provide the following information:

The organization's name, address, and employer identification number (EIN).
The name and telephone number of an authorized contact person and the hours he or she can be reached.
The type of tax return and years involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that was contacted.
A description of the hardship the organization is facing and supporting documentation (if applicable).

The organization may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TTD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If the organization prefers, it may call, write, or fax to the Taxpayer Advocate office in its area. See Pub. 1546, The Taxpayer Advocate Service-How to Get Help with Unresolved Tax Problems, for a list of addresses and fax numbers.

Phone Help

If you have questions and/or need help completing this form, please call 1-800-829-4933. This toll-free telephone service is available Monday through Friday.

How To Get Forms and Publications

Internet

You can access the IRS website 24 hours a day, 7 days a week, at www.irs.gov to:

Order IRS products online.
Download forms, instructions, and publications.
See answers to frequently asked tax questions.
Search publications online by topic or keyword.
Send us comments or request help by email.
Sign up to receive local and national tax news by email. To subscribe, visit www.irs.gov/eo.

IRS Tax Products CD

You can order Pub. 1796, IRS Tax Products on CD, and obtain:

Current-year forms, instructions, and publications.
Prior-year forms, instructions, and publications.
Bonus: Historical Tax Products DVD (Ships with the final release).
Tax Map: An electronic research tool and finding aid.
Tax law and frequently asked questions (FAQs).
Tax topics from the IRS telephone response system.
Fill-in, print and save features for most tax forms.
Internal Revenue Bulletins
Toll-free and email technical support.

The CD is released twice during the year: The first release will ship the beginning of January 2007. The final release will ship the beginning of March 2007.

Purchase the CD from National Technical Information Services at: www.irs.gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll-free to buy the CD for $35 (plus a $5 handling fee). Price is subject to change.

By Phone and In Person

You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office.