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. Complete and attach Form 8050, Direct Deposit of Tax Exempt or Government Entity Tax Refund. For details, see the Form 8050 instructions.

Caution: Amounts from Parts I and Part II cannot be combined in Part III.

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.

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

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 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.

8 Instructions for Form 4720 (2025)

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