Part II taxes on managers, self-dealers, disqualified per-

sons, 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.

Use Form 8868, Application for 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.

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.

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.

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.

Report all amounts in U.S. currency (state conversion rate used) and give information in English. Report items in total,

4 Instructions for Form 4720 (2025)

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 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.

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 as an additional prohibited benefit.

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.

Making a Payment The IRS recommends paying electronically whenever possible. Options to pay electronically include any of the payment options below. Also, go to IRS.gov/Payments to see all of your payment options.

Electronic Federal Tax Payment System (EFTPS). Payment of the tax due may be submitted electronically through EFTPS. EFTPS is a free service of the Department of the Treasury. See IRS.gov/EFTPS and EFTPS.gov for more information.

Electronic funds withdrawal (EFW). EFW from a checking or savings account is also available to those who file electronically. See IRS.gov/EFW for more information.

Paying by check. Make the check payable to "United States Treasury." Write SSN (or TIN, if applicable), and "Form 4720" on the check to assist us in posting it to the proper account. See IRS.gov/PayByMail for more information.

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.

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

Instructions for Form 4720 (2025) 5

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.

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.

If you pay an initial tax under sections 4941 through 4945, 4955, and 4958, for tax year 2025, 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.

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

Refer to the instructions for the applicable schedule for information relating to corrections made (or not made) for the applicable excise tax.

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 two or 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.

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

• In any other case (sections 4941, 4945, 4955, and 4958), on the date the event occurred.

6 Instructions for Form 4720 (2025)

overpayment on 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.

An organization filing Form 4720 should check the appropriate box for the type of annual return it files. For purposes of these instructions, "an organization" or “the organization” refers to the organization (generally tax-exempt) referenced in the excise tax, rather than a disqualified person (such as a donor or related person) or manager with respect to the organization. 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 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.