Part II. Tax Computation

Organizations Taxable as Corporations

Line 1. Multiply Part I, line 11, by 21% (0.21).

Trusts

Line 2. Trusts exempt under section 501(a), which otherwise would be subject to subchapter J (estates, trusts, etc.), are taxed at trust rates. This rule also applies to employees’ trusts that qualify under section 401(a). Most trusts figure the tax on the UBTI amount on Part I, line 11, using the Tax Rate Schedule for Trusts, below. If the tax rate schedule is used, enter the tax on Part II, line 2, and check the box for “Tax rate schedule.” If the trust is eligible for the rates on net capital gains and qualified dividends, complete Schedule D (Form 1041) and enter on Part II, line 2, the tax from Schedule D (Form 1041). Check the box for “Schedule D” on line 2 and attach Schedule D (Form 1041) to Form 990-T.

Caution: A trust with more than one unrelated trade or business that computes its tax on Schedule D (Form 1041) may need to adjust the amount entered on Schedule D (Form 1041), Part V, line 22, to include only the net gain from Schedule D (Form 1041), line 18a (column 2), or line 19 (column 2), that is included in income on Part I of Form 990-T.

Tax Rate Schedule for Trusts

If the amount on Part II, line 2, is:

Over— But not over— Tax is:

Of the amount

over—

$0 $3,150 10% $0 3,150 11,450 $315 + 24% 3,150 11,450 15,650 2,307 + 35% 11,450 15,650 - - - - - 3,777 + 37% 15,650

Proxy Tax

Line 3. To pay the section 6033(e)(2) proxy tax on nondeductible lobbying and political expenditures, enter the proxy tax on Part II, line 3, and attach a statement showing the computation.

Exempt organizations, except section 501(c)(3) and certain other organizations, must include certain information regarding lobbying expenditures on Form 990. In addition, organizations may have to provide notices to members regarding their share of dues to which the expenditures are allocable. See the Instructions for Form 990 and Rev. Proc. 98-19, 1998-1 C.B. 547, for exceptions.

If the organization elects not to provide the notices described earlier, it must pay the proxy tax described in section 6033(e)(2). If the organization doesn’t include the entire amount of allocable dues in the notices, it may have to pay the proxy tax. This tax isn’t applicable to section 501(c)(3) organizations. Figure the proxy tax by

multiplying the aggregate amount not included in the notices described earlier by 21%. No deductions are allowed.

Other Tax Amounts

Line 4a. Enter the amount from Form 4255, Part I, line 3, column (q).

Line 4b. Part II, line 4b, is intended to capture any positive tax amount that doesn’t have a specific line. An MeF (Internet filing) dependency (attachment) captures the detail. Use line 4b to report tax amounts not reported on a specific line in Part II (excluding tax deferred under section 1294, which is included on Part III, line 4).

• Enter the base erosion minimum tax amount under section 59A from Form 8991, Part IV, line 5e. Section 59A applies to base erosion payments paid or accrued in tax years beginning after 2017. See the Instructions for Form 8991 to determine if the organization is an applicable taxpayer under section 59A(e), and, if the organization is an applicable taxpayer, to determine the base erosion minimum tax amount.

• Enter the tax and interest on a nonqualified withdrawal from a capital construction fund (section 7518).

• Enter the deferred tax amount (defined in section 1291(c)(1)) that is the aggregate increase in taxes (described in section 1291(c)(2)) on an excess distribution from a passive foreign investment company (PFIC) that is taxable as UBTI. See the Instructions for Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.

• Enter the increase in tax attributable to a partner’s audit liability. If your organization received Form 8986 from one or more partnerships that have elected to push out adjustments to partnership-related items to their partners, complete and attach Form 8978. See the Instructions for Form 8978. Include any increase in taxes due from Form 8978, line 14, on Part II, line 4b. If Form 8978 shows a decrease in tax, do not report that here. Instead, a negative adjustment should be reported in Part III on line 1b.

Unless otherwise indicated, when reporting deferred tax on line 4b, don’t include interest on the tax amount. Instead, report such interest as “Other amounts due” on Part III, line 3e. For example, interest on tax deferred under section 1291(c)(1), determined under section 1291(c)(3), is reported on Part III, line 3e.

How to report. Attach a statement to Part II, line 4b, showing (a) a brief description of the type of tax, and (b) the amount. For example, if the organization is reporting $100 of tax due from an increase in tax attributable to a partner’s audit liability (Form 8978), the attachment would show “Form 8978” and “$100.”

Alternative Minimum Tax

Line 5. Organizations liable for tax on unrelated business taxable income may be liable for alternative minimum tax.

Trusts attach Schedule I (Form 1041), Alternative Minimum Tax—Estate and Trusts, and enter any tax from Schedule I on this line.

Instructions for Form 990-T (2025) 13

Corporations may need to complete Form 4626, Alterative Minimum Tax—Corporations, and enter any tax from Form 4626 on this line. You may need to file Form 4626 with your tax year 2025 Form 990-T. See the Instructions for Form 4626 for more information.

Tax on Noncompliant Facility Income

Line 6. There is a tax on a hospital organization’s noncompliant facility income. See Regulations section 1.501(r)-2 for more information. This tax is an income tax and is separate from the excise tax on a failure to meet the community health needs assessment requirements of section 501(r)(3) that is reported on Form 4720.

Total

Line 7. Add Part II, lines 3, 4, 5, and 6, to Part II, line 1 or 2, whichever applies.