Part V. Excise Tax Based — 2025 Inst 990-PF (PDF)

General Rules

Domestic exempt private foundations. These foundations are subject to a 1.39% tax on net investment income under section 4940(a). However, certain exempt operating foundations described in section 4940(d)(2) may not owe any tax.

Exception. The section 4940 tax doesn't apply to an organization making an election under section 41(e)(6)(D). Enter “N/A” on line 1 in Part V.

Domestic taxable private foundations and section 4947(a) (1) nonexempt charitable trusts. These organizations are subject to a modified 1.39% tax on net investment income under section 4940(b). However, they must first figure the tax under section 4940(a) as if that tax applied to them.

Foreign organizations. Under section 4948, exempt foreign private foundations are subject to a 4% tax on their gross investment income derived from U.S. sources.

Caution: Under section 871(m), added by the Hiring Incentives to Restore Employment Act (HIRE), a “dividend equivalent” is treated as a dividend from U.S. sources for certain purposes, including U.S. withholding tax rules applicable to foreign organizations. See section 871(m) for more information.

Taxable foreign private foundations that filed Form 1040-NR, U.S. Nonresident Alien Income Tax Return, or Form 1120-F, U.S. Income Tax Return of a Foreign Corporation should not complete Part V.

Estimated tax. Domestic exempt and taxable private foundations and section 4947(a)(1) nonexempt charitable trusts may have to make estimated tax payments for the excise tax based on investment income. See O. Figuring and Paying Estimated Tax, earlier, for more information.

Tax Computation Caution: Line 1a only applies to domestic exempt operating foundations described in section 4940(d)(2) that have a ruling or determination letter from the IRS establishing exempt operating foundation status. If your organization doesn't have this letter, skip line 1a.

Line 1a. A domestic exempt private foundation that qualifies as an exempt operating foundation under section 4940(d)(2) isn't liable for any tax on net investment income on this return.

If your organization qualifies, check the box and enter the date of the ruling or determination letter on line 1a and enter “N/A” on line 1. Leave the rest of Part V blank. For the first year,

the organization must attach a copy of the ruling or determination letter establishing exempt operating foundation status. As long as the organization retains this status, enter the date of the ruling or determination letter in the space on line 1a. If the organization no longer qualifies under section 4940(d)(2), leave the date line blank and figure the section 4940 tax in the normal manner.

Line 1b. Exempt foreign organizations shouldn't include net capital gain income when figuring the excise tax due under section 4948(a).

Line 2. Section 511 tax. Under section 4940(b), a domestic section 4947(a)(1) nonexempt charitable trust or taxable private foundation must add to the tax figured under section 4940(a) (on line 1) the tax which would have been imposed under section 511 for the tax year if it had been exempt from tax under section 501(a). If the domestic section 4947(a)(1) nonexempt charitable trust or taxable private foundation has unrelated business taxable income that would have been subject to the tax imposed by section 511, the computation of tax must be shown in an attachment. Form 990-T may be used as the attachment. All other filers, enter zero.

Line 4. Subtitle A (income) tax. Domestic section 4947(a)(1) nonexempt charitable trusts and taxable private foundations, enter the amount of subtitle A (income) tax for the year reported on Form 1041 or Form 1120. All other filers, enter zero.

Line 5. Tax based on investment income. Subtract line 4 from line 3 and enter the difference (but not less than zero) on line 5. Any overpayment entered on line 10 that is the result of a negative amount shown on line 5 won't be refunded. Unless the organization is a domestic section 4947(a)(1) nonexempt charitable trust or taxable private foundation, the amount on line 5 is the same as on line 1.

Line 6a. Enter the amount of 2025 estimated tax payments and any 2024 overpayment of taxes that the organization specified on its 2024 return to be credited toward payment of 2025 estimated taxes.

Caution: Line 6a applies only to domestic foundations.

Trust payments treated as beneficiary payments. A trust may treat any part of estimated taxes it paid as taxes paid by the beneficiary. If the filing organization was a beneficiary that received the benefit of such a payment from a trust, include the amount on line 6a of Part V and write, “Includes section 643(g) payment.” See section 643(g) for more information about estimated tax payments treated as paid by a beneficiary.

Line 6b. Exempt foreign foundations must enter the amount of tax withheld at the source. Attach Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, or other form that verifies the withheld tax reported on line 6b (Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, or Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax).

Line 6d. Enter the amount of any backup withholding erroneously withheld. Recipients of interest or dividend payments must generally certify their correct taxpayer identification number to the bank or other payer on Form W-9,

Qualification. To qualify as an exempt operating foundation for a tax year, an organization must meet the following requirements of section 4940(d)(2).

It is an operating foundation described in section 4942(j)(3).
It has been publicly supported for at least 10 tax years.
Its governing body, at all times during the tax year, consists of individuals, at least 75% of whom aren't disqualified individuals (as defined in section 4940(d)(3)), and is broadly representative of the general public.
It has no officer who was a disqualified individual at any time during the tax year.

Instructions for Form 990-PF (2025) 23

Request for Taxpayer Identification Number and Certification. If the payer doesn't get this information, it must withhold part of the payments as “backup withholding.” If the organization files Form 990-PF and was subject to erroneous backup withholding because the payer didn't realize the payee was an exempt organization and not subject to this withholding, the organization can claim credit for the amount withheld.

Caution: Don't claim erroneous backup withholding on line 6d if you claim it on Form 990-T.

Line 8. Addition to Tax. Enter any addition to tax for underpayment of estimated tax shown on Form 2220.

Line 9. Tax due. Domestic foundations should see P. Tax Payment Methods for Domestic Private Foundations , earlier.

Go to IRS.gov/Payments for more detailed information on using any of the payment options below.

IRS Direct Pay .
Debit Card, Credit Card, or Digital Wallet .
Electronic Funds Withdrawal .
Electronic Federal Tax Payment System (EFTPS) .
Same-day wire . To pay by check or money order. If you pay by check or money order:
Make it payable to “United States Treasury”;
Make sure the name of the estate or trust appears on the payment;
Write the estate’s or trust’s EIN and “2025 Form 1041” on the payment;
Consider completing the 2025 Form 1041-V; and
Enclose, but don’t attach, the payment (and Form 1041-V, if completed) with Form 1041.

Note: The IRS can’t accept a single check (including a cashier’s check) for amounts of $100,000,000 ($100 million) or more. If you’re sending $100 million or more by check, you’ll need to spread the payments over two or more checks with each check made out for an amount less than $100 million. The $100 million or more amount limit doesn’t apply to other methods of payment (such as electronic payments), so please consider paying by means other than checks.

To pay by cash. You may be able to pay your balance due with cash at a participating retail store. See IRS.gov/ PayYourTaxesWithCash .

Line 11. Refund. If there is a refund, complete and attach Form 8050, Direct Deposit of Tax Exempt or Government Entity Tax Refund. All payments to the federal government are to be processed electronically.

Amended return. If you are amending Part V, be sure to combine any tax due that was paid with the original return (or any overpayment credited or refunded) in the total for line 7. On the dotted line to the left of the line 7 entry space, write “Tax Paid w/ O.R.” and the amount paid. If you had an overpayment, write “O.R. Overpayment” and the amount credited or refunded in brackets.

If you file more than one amended return, attach a schedule listing the tax due amounts that were paid and overpayment amounts that were credited or refunded. Write “See Attachment” on the dotted line and enter the net amount in the entry space for line 7.