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

Tip: 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 .

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.