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.

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.

Tip: 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. 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

• To an individual who is not a highly compensated employee as defined in section 414(q).

• 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:

• 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

20 Instructions for Form 4720 (2025)

Specific Instructions Enter in column (b) the name of each covered employee who was paid more than $1 million in remuneration 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).

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.

Tip: 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 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 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

Instructions for Form 4720 (2025) 21

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 the amounts in 6(c) and 6(d), subtract the amount in 6(e), and enter the total in 6(f).

Line 7. Multiply the amount in 6(f) by 0.014 (1.4%) and enter the amount in 7(f) and on Part I, line 14.

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.

Caution: 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:

Check “No,” if the IRS should contact the organization listed on the first page of the Form 4720, rather than the paid preparer.

If you have questions and/or need help completing this form, please call 877-829-5500. This toll-free telephone service is available Monday through Friday.

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.

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.

• 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 2026 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.

• 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 .

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 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

22 Form 4720 Instructions

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.

Instructions for Form 4720 (2025) 23

Index

A Amended return 6 Attorney 22

D Direct Deposit 8 Disqualified person 16 Donor advised funds 18, 19

E Excess business holdings :

Exceptions to tax 10 Schedule C 9 Extension 4

Schedule A; Initial Taxes on

Initial taxes on taxable

expenditures : section 4945 13

Schedule L; Taxes on Prohibited

P Paid Preparer 22 Paid Preparer Authorization 22 Preparer Tax identification Number

Benefits Distributed From Donor Advised Funds 19 Schedule M; Tax on Failure to Meet

Executive Compensation (Section 4960) 20 Schedule O; Excess Tax on Net

the Community Health Needs Assessment Requirements (Section 501(r)(3)) 19 Schedule N; Tax on Excess

(PTIN) 22 Publications :

Pub. 947, Practice Before the IRS

Investment Income of Private Colleges and Universities (Section 4968) 21 Signature and Verification 4 Summary of Taxes 8

and Power of Attorney 22

S Schedule :

F Filing requirements :

Self-Dealing 8 Schedule B; Initial Tax on

T Tax on excess lobbying

When to file 4 Where and How to file 4 Who must file 2 Foreign Organizations or U.S.

Undistributed Income 9 Schedule C; Initial Tax on Excess

Business Holdings 9 Schedule D; Initial Taxes on

Tax Shelter Transactions : listed transaction 17 section 4965 17 Taxes on disqualifying lobbying

expenditures : section 4911 15 Tax Payments 5 Taxes on being a party to Prohibited

Territory 4

I Initial Taxes on Excess Benefit

Investments That Jeopardize Charitable Purpose 12 Schedule E; Initial Taxes on Taxable

Expenditures 13 Schedule F; Initial Taxes on Political

Transactions : disqualified person 16 donor advised funds 16 excess benefit transaction 16 section 4958 15 sponsoring organizations 16 supporting organizations 16 Initial taxes on investments that

Expenditures 14 Schedule G; Tax on Excess

Lobbying Expenditures 15 Schedule H; Taxes on Disqualifying

expenditures : section 4912 15 Taxes on Managers, Self-Dealers,

etc. 7 Taxes on Prohibited Benefits

Lobbying Expenditures 15 Schedule I; Initial Taxes on Excess

Benefit Transactions 15 Schedule J; Taxes on Being a Party

Distributed From Donor Advised Funds : section 4967 19 Taxes on Taxable Distributions of

jeopardize charitable purpose : section 4944 12 Initial taxes on political

to Prohibited Tax Shelter Transactions (Section 4965) 17 Schedule K; Taxes on Taxable

Distributions of Sponsoring Organizations Maintaining Donor Advised Funds 18

Sponsoring Organizations Maintaining Donor Advised Funds : section 4966 18

expenditures : section 4955 14

24