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IRS Form 990-T, titled “Exempt Organization Business Income Tax Return,” is used by tax-exempt organizations to report and pay income tax on unrelated business income. This form is necessary when a tax-exempt entity generates income from a trade or business activity that is not substantially related to its exempt purpose, as such income is subject to income tax to ensure fairness in the tax system. Key elements that need to be reported on Form 990-T include:
This form allows tax-exempt organizations to calculate and report their tax liabilities for these non-exempt activities. Filing Form 990-T helps maintain the integrity of the tax-exempt status by ensuring that organizations are properly taxed on commercial activities outside their charitable, educational, or other tax-exempt purposes.
Other IRS Forms for Charities and Nonprofits
If you are an owner of an exempt organization, you might find some other IRS forms necessary as well.
What it is: Form 990-T is the Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)).
Who signs: Box 7, Corporations: the return must be signed and dated by the president, vice president, treasurer, assistant treasurer, or chief accounting officer, or by any other corporate officer (such as a tax officer) authorized to sign.[2]
Any disregarded entity, domestic, or foreign organization exempt under section 501(a), section 529(a), or section 529A(a), if it has gross income under the 2025 Instructions for Form 990-T of $1,000 or more from a regularly conducted unrelated trade or business (see Regulations section 1.6012-2(e)) (checked October 31, 2026).[2]
Enter the Name of organization, the Employer identification number, and the Number and street, with the Room or suite no.; if you have a P.O. box, see instructions.
Enter the City or town, State or province, Country and ZIP or foreign postal code.
Check the box for the address changed or for the name changed, and see instructions for a name change.
Under B, Exempt under section, enter the section number. Under G, Check organization type.
Enter the number of attached Schedules A (Form 990-T).
During the tax year, was the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? Check Yes or No. If “Yes,” enter the name and identifying number of the parent corporation.
The books are in care of: enter the name, and the Telephone number.
Organizations with UBTI must complete Form 990-T, and also a separate Schedule A (Form 990-T) for each separate unrelated trade or business.
An organization with no UBTI that needs to file Form 990-T should complete and file Form 990-T only, and does not complete or attach Schedule A (Form 990-T) to its return.[2]
Enter on line 1 the total of unrelated business taxable income computed from all unrelated trades or businesses (see instructions).
Line 3: add lines 1 and 2.
On line 4, enter charitable contributions (see instructions for limitation rules).
Line 5: subtract line 4 from line 3 for the total unrelated business taxable income before net operating losses.
On line 6, enter the deduction for net operating loss. See instructions.
Line 7 is the total of unrelated business taxable income before specific deduction and section 199A deduction: subtract line 6 from line 5.
On line 8, enter the specific deduction (generally $1,000, but see instructions for exceptions) (checked October 31, 2026).
A specific deduction of $1,000 is allowed except for computing the NOL and the net operating loss deduction under section 172. Only one specific deduction may be taken, regardless of the number of unrelated businesses conducted (checked October 31, 2026).
Line 9 is for trusts: Section 199A deduction. See instructions.
Line 10: add lines 8 and 9 for the total deductions.
Line 11: subtract line 10 from line 7 for the unrelated business taxable income. If line 10 is greater than line 7, enter zero.[2]
Organizations taxable as corporations: multiply Part I, line 11, by 21% (0.21).
Line 7: add lines 3 through 6 to line 1 or 2, whichever applies.
Line 2: subtract line 1e from Part II, line 7.
Line 4: add lines 2 and 3f for the total tax (see instructions).
Line 7: add lines 6a through 6k for the total payments and section 1062 applicable net tax liability. For line 6k, enter amount from Form 1062, line 14.
Tax due: if line 7 is smaller than the total of lines 4, 5a, 5b, and 8, enter amount owed.
Overpayment: if line 7 is larger than the total of lines 4, 5a, 5b, and 8, enter amount overpaid.
Line 11: enter the amount of line 10 you want: Credited to 2026 estimated tax or Refunded. For Refunded amount, also complete and attach Form 8050.
Check if Form 2220 is attached.
Part IV Statements Regarding Certain Activities and Other Information (see instructions).
At any time during the 2025 calendar year, did the organization have an interest in or a signature or other authority over a financial account (bank, securities, or other) in a foreign country? If “Yes,” the organization may have to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts.
2. During the tax year, did the organization receive a distribution from or was it the grantor of or transferor to a foreign trust? If “Yes,” see instructions for other forms the organization may have to file.
Go to www.irs.gov/Form990T for instructions and the latest information. Do not enter SSNs on this form as it may be made public if your organization is a 501(c)(3).
Check box if an amended return.
Filers may request an automatic extension of time to file Form 990-T by using Form 8868.[2]
All entities filing Form 990-T must use Form 8868 to request an extension of time to file Form 990-T.[2]
To correct errors or change a previously filed return, check the “Amended return” box in item F, in the heading area of the form, and in Part V, Supplemental Information, include a statement that indicates the line numbers on the original return that were amended and give the reason for each amendment.[2]
Part V Supplemental Information: Provide any additional information.
Form 990-T is the Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)). Use Form 990-T and Schedule A (as applicable) to report unrelated business income and to figure and report unrelated business income tax liability.[2]
Sign Here: Signature of officer, Date, Title.
All other organizations must file Form 990-T by the 15th day of the 5th month after the end of their tax years. An employees' trust defined in section 401(a), an IRA (including SEPs and SIMPLEs), a Roth IRA, a Coverdell ESA, or an Archer MSA must file Form 990-T by the 15th day of the 4th month after the end of its tax year. If the regular due date falls on a Saturday, Sunday, or legal holiday, file no later than the next business day.[2]
If you are an organization or trust defined in section 511 and need to file Form 990-T, you are required to file electronically.[2]
An organization that fails to file its return when due (including extensions of time for filing) is subject to a penalty of 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $525 (checked October 31, 2026). The penalty won't be imposed if the organization can show that the failure to file on time was due to reasonable cause. The penalty for late payment of taxes is usually 1/2 of 1% of the unpaid tax for each month or part of a month the tax is unpaid, and it can't exceed 25% of the unpaid tax.[2]
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
[1] Form 990-T (2025), Exempt Organization Business Income Tax Return, Internal Revenue Service (the Official source link on this page).
[2] Instructions for Form 990-T (2025), Internal Revenue Service.