Part III. Tax and Payments — 2025 Inst 990-T (PDF)

Foreign Tax Credit

Corporations. See Form 1118, Foreign Tax Credit—Corporations, for an explanation of when a corporation can claim this credit for payment of income tax to a foreign country or U.S. possession.

Caution: An organization described in section 501(c) which is exempt from tax under section 501(a) should not use Form 3800 to claim the refundable small employer tax credit for certain health insurance premiums paid on behalf of its employees. See the instructions for Part III, Line 6f , later. Also, see the Instructions to Form 3800.

Credit for Prior-Year Minimum Tax

Line 1d. Use Form 8801 to figure the minimum tax credit and any carryforwards of that credit for trusts. For corporations, use Form 8827.

Total Credits

Line 1e. Add lines 1a through 1d.

Amounts Due

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

Line 3b. If the corporation disposed of property (or there was a reduction in the qualified basis of the property) for which it took the low-income housing credit, and the corporation did not follow the procedures that would have prevented recapture of the credit, it may owe a tax. See Form 8611, Recapture of Low-Income Housing Credit.

Line 3c. If the corporation used the percentage-of-completion method under section 460(b) for certain long-term contracts, figure any interest due or to be refunded using the look-back method, described in section 460(b)(2). Use Form 8697 to figure any interest due or to be refunded. See the Instructions for Form 8697. Include any interest due on line 3c.

Line 3d. If the corporation used the income forecast method to depreciate property, it must figure any interest due or to be refunded using the look-back method, described in section 167(g)(2). Use Form 8866 to figure any interest due or to be refunded. See the Instructions for Form 8866. Include any interest due on line 3d.

Line 3e. Other amounts due may be included in the total entered on Part III, line 3e. See How to report below for details on reporting these amounts on an attached statement.

Interest on deferred tax attributable to installment sales of certain time-shares and residential lots (section 453(l)(3)) and certain nondealer installment obligations (section 453A(c)).
Interest due on deferred gain (section 1260(b)).
If the organization makes the election to be taxed on its income from qualifying shipping activities, complete Form 8902, Alternative Tax on Qualifying Shipping Activities, and attach it to Form 990-T. See Income from qualifying shipping activities , later.

How to report. If the organization entered amounts on line 3e, attach a statement showing the computation of each item included in the total for Part III, line 3e. In addition, specify the following.

Trusts. See Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), for rules on how the trust computes the foreign tax credit.

Line 1a. Complete the form that applies to the organization and attach the form to Form 990-T. Enter the credit on this line.

Other Credits

Line 1b. Use line 1b to enter nonrefundable credits not identified elsewhere in Part III, line 1. Attach a statement that lists the applicable form and the amount of the credit. Such credits may include the following.

Any QEV passive activity credits from prior years allowed for the current tax year from Form 8834, Qualified Electric Vehicle Credit, line 7. Attach Form

The allowable credits from Form 8912, Credit to Holders of Tax Credit Bonds, line 12.
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. Enter the amount of any decrease in taxes due from Form 8978, line 14.

General Business Credit

Line 1c. Enter the organization’s total general business credit (excluding the work opportunity credit, the employee retention credit, the empowerment zone employment credit, and the credit for employer differential wage payments).

The organization is required to file Form 3800, General Business Credit, to claim any business credit. For a list of credits, see Form 3800. Include the allowable credit from Form 3800, Part II, line 38, on Form 990-T, Part III, line 1c.

For example, if the organization is reporting $100 of tax due from the recapture of the QEV credit, enter “Section

The applicable Code section or form number.
The type of tax or interest.
The amount of tax or interest.

14 Instructions for Form 990-T (2025)

30—QEV recapture tax—$100” on the attached statement.

Total Tax

Line 4. Include any deferred tax on the termination of a section 1294 election applicable to shareholders in a qualified electing fund (QEF) in the amount entered on Part III, line 4. See Form 8621, Part VI, and How to report, later.

Subtract from the total entered on Part III, line 4, any deferred tax on the corporation’s share of undistributed earnings of a QEF. See Form 8621, Part III.

How to report. Attach a statement showing the computation of each item included in, or subtracted from, the total on Part III, line 4. In addition, specify the following.

The applicable Code section.
The type of tax.
The amount of tax.

Section 965 and 1062

Line 5a, Section 965

Corporation. For tax years 2021 and later, a corporation will not have any section 965(a) inclusions to report. If the organization elected to pay its section 965 net tax liability in installments, the organization should attach Form 965-B to Form 990-T. However, the current-year installment should be paid with a separate voucher, which will be mailed to the organization in advance of the payment due date. Don’t include the current-year installment in the Tax and Payments computation in Part III.

Trust. A trust that has “net 965 tax liability” for the current tax year (as described in the Instructions for Form 965-A) should enter on line 5a the amount from the current-year line on Form 965-A, Part II, column (k). If the trust has no net 965 tax liability for the current tax year, but has elected to pay its section 965 net tax liability in installments, the trust should attach Form 965-A to Form 990-T, but should not include the current-year installment in the Tax and Payments computation in Part III (as described above for corporations).

Line 5b—First Installment of Section 1062 Applicable Net Tax Liability

Complete and attach Form 1062, Schedule(s) A (Form 1062), and a copy of the covenant(s) if electing to defer the payment of the net income tax attributable to the gain on the sale or exchange of qualified farmland property during this tax year under section 1062. Enter the amount from Form 1062, Part III, line 15. See section 1062 and the Instructions for Form 1062 for more information.

Tax Payments

Line 6b. Enter the total estimated tax payments made for the tax year.

If an organization is the beneficiary of a trust, and the trust makes a section 643(g) election to credit its estimated tax payments to its beneficiaries, include the organization’s share of the estimated tax payments in the

total amount entered here. Attach a statement showing the amount of the section 643(g) credit amount.

Foreign Organizations

Line 6d. Enter the tax withheld on UBTI from U.S. sources that isn’t effectively connected with the conduct of a trade or business within the United States. Attach Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, or another form which verifies the withheld tax reported on Part III, line 6d.

Backup Withholding

Line 6e. Recipients of dividend or interest payments must generally certify their correct tax identification number to the bank or other payer on Form W-9. If the payer doesn’t get this information, it must withhold part of the payments as “backup withholding.” If your organization was subject to erroneous backup withholding because the payer didn’t realize you were an exempt organization and not subject to this withholding, you can claim credit for the amount withheld by including it on Part III, line 6e. See Backup withholding, earlier.

Credit for Small Employer Health Insurance Premiums

Line 6f. An organization described in section 501(c) which is exempt from tax under section 501(a) may be eligible to claim the refundable small employer tax credit for a percentage of certain health insurance premiums paid on behalf of its employees.

A tax-exempt eligible small employer can request the refundable credit by attaching Form 8941, Credit for Small Employer Health Insurance Premiums, showing the calculation for the amount of the refundable credit claimed. A tax-exempt organization is eligible for the refundable credit if it is an organization that is described in section 501(c) which is exempt from tax under section 501(a). The organization must keep records to substantiate the amount of the credit claimed.

Tip: If a tax-exempt eligible small employer is filing Form 990-T only to request a credit for small employer health insurance premiums paid, complete the following steps.

Fill in the heading (the area above Part I) except items J and K. Check the box for “Credit from Form 8941” in item H.
Enter -0- on Part I, line 11, and Part III, line 4.
Enter the credit from Form 8941, line 20, on Part III, line 6f.
Complete Part III, lines 7, 10, and 11, and the signature area.

Elective Payment Election

Line 6g. Enter on line 6g the total net elective payment election amount from Form 3800, Part III, line 6, column (j).

Instructions for Form 990-T (2025) 15

Tax on Undistributed Long-Term Capital Gain by RIC or REIT

Line 6h. Enter the amount of tax paid by a regulated investment company (RIC) or real estate investment trust (REIT) on undistributed long-term capital gains. Attach each Form 2439 you received from each RIC or REIT of which you are a shareholder. If you are filing a composite Form 990-T, see Composite Form 990-T, earlier.

Credit for Federal Excise Tax Paid on Fuels

Line 6i. If you paid a federal excise tax on certain fuels and qualify for any of the credits listed below, attach Form 4136 to your return and enter the total credit on line 6i.

A credit for certain nontaxable uses (or sales) of fuel during your income tax year.
A credit for blending a diesel-water fuels emulsion.
A credit for exporting dyed fuels or gasoline blendstocks.

See the Instructions for Form 4136 for more information about these credits.

Note: Form 8849, Claim for Refund of Excise Taxes, may be used to claim a periodic refund of excise taxes instead of waiting to claim a credit on Form 4136. See the Instructions for Form 8849 and Pub. 510, Excise Taxes.

Other Credits

Line 6j. For other credits provide the following information.

The number of the form used to calculate the credit, or the Code section that establishes the credit.
A brief description of the credit.
The amount of the credit.

If necessary, provide information required to claim a specific credit in Part V, Supplemental Information.

Other credits may include the following.

The credit for ozone-deleting chemicals. Include any credit the organization is claiming under section 4682(g) for taxes paid on chemicals used as propellants in metered-dose inhalers.
The amount of current year net section 965 tax liability, for a trust, this amount will be from Form 956-A, Part I, column (d), line 4.

Estimated Tax Penalty

Line 8. Use Form 2220, Underpayment of Estimated Tax by Corporations, to see if the organization owes a penalty and its amount. Generally, the organization isn’t required to file this form because the IRS can figure the amount of any penalty and notify the organization. However, even if the organization doesn’t owe the penalty, you must complete and attach Form 2220 if either of the following applies.

The annualized income or adjusted seasonal installment method is used.
The organization is a “large organization” computing its first required installment based on the prior year’s tax.

If you attach Form 2220, check the box on Form 990-T, Part III, line 8, and enter the amount of any penalty on this line.

Tax Due

Line 9. You must pay the tax in full when the return is filed. You may pay by EFTPS. For more information about EFTPS, see Electronic deposit requirement , earlier. Also, you may pay by credit or debit card.

To pay by credit or debit card. For information on paying your taxes electronically, including by credit or debit card, go to IRS.gov/E-pay .

Direct Deposit

Line 11. If the organization has access to U.S. banking services, you should use direct deposit for any refunds, whenever possible. See IRS.gov/DirectDeposit for more information.

Direct deposit is available for this form. If there is an overpayment when filing the return, complete and attach Form 8050. For more information see the Instructions for Form 8050.