Rev. Proc. 73-29

Section 1. Purpose.

.01 The purpose of this Revenue Procedure is to update the return filing requirements for charitable trusts for taxable years beginning after December 31, 1972.

.02 This Revenue Procedure makes three important changes in the current filing requirements:

(1) Section 4947(a)(1) trusts are no longer permitted to file Form 1041-A in lieu of Form 990-AR.

(2) The footnotes in Rev. Proc. 72-25, 1972-1 C.B. 749, concerning income from an unrelated trade or business have been modified to make clear that section 501(c)(3) trusts must file Form 990-T if they have $1,000 or more of gross income from an unrelated trade or business, whereas section 664 trusts must file Form 1041 if they have any unrelated business taxable income.

(3) The instructions with respect to pooled income funds have been modified to require them to file Form 1041-A if, under their trust instrument or local law, they are permitted to accumulate income in the taxable year.

.03 The Revenue Procedure also provides for the use by private foundations, exempt under section 501(c)(3) of the Internal Revenue Code of 1954, of Form 990-PF instead of Form 990.

Sec. 2. Background

The charitable trust returns, forms, and schedules (hereinafter referred to as returns) to which this Revenue Procedure is applicable are the following:

Return of Organization Exempt from Income Tax, Form 990;

Organizations Exempt Under 501(c)(3) (Except Private Foundations filing Form 990-PF)--Supplementary Information, Schedule A (Form 990);

Return of Private Foundation Exempt from Income Tax, Form 990-PF;

Annual Report of Private Foundation, Form 990-AR (or equivalent statement);

Exempt Organization Business Income Tax Return, Form 990-T;

U.S. Fiduciary Income Tax Return, Form 1041;

Determination of Liability for Chapter 42 Tax--Trusts Described in Section 4947(a), Schedule PF (Form 1041);

U.S. Information Return of Trust Accumulation of Charitable, etc., Amounts, Form 1041-A;

Charitable Remainder Trust, Form 1041-B; and

Return of Initial Excise Taxes on Private Foundations, Foundation Managers and Disqualified Persons, Form 4720.

The charitable trusts that file one or more of these returns are:

Trusts exempt from income tax under section 501(a) of the Code as organizations described in section 501(c)(3) (hereinafter referred to as exempt charitable trusts);

Trusts described in section 4947(a)(1) of the Code, including charitable trusts created prior to October 10, 1969, that have not applied to the Internal Revenue Service for recognition as organizations described in section 501(c)(3) (hereinafter referred to as section 4947(a)(1) trusts); and

Charitable remainder trusts described in section 664 of the Code, pooled income funds described in section 642(c)(5), and all other split-interest trusts described in section 4947(a)(2), in which there are both charitable and noncharitable interests, without regard to the date of transfer in trust (hereinafter referred to as charitable remainder trusts, pooled income funds, and all other split-interest trusts described in section 4947(a)(2), respectively).

Sec. 3. Table of Filing Requirements.

The following table shows the filing requirements for these charitable trusts:

                                     KIND OF RETURNS

B But not if the trust is described in section 509(a)(1), (2), or (3).

C Excluding trusts having less than $5,000 of assets during the entire taxable year.

D But only if the trust has $1,000 or more of gross income from an unrelated trade or business.

E But only if there is unrelated business taxable income (as defined in section 512).

F But not if all net income is required to be distributed currently to beneficiaries.

G Only with respect to amounts transferred in trust after May 26, 1969.

H If there is liability for a Chapter 42 excise tax (excluding section 4940).

Sec. 4. Effect on Other Documents.

This Revenue Procedure supersedes Rev. Proc. 72-25.

Sec. 5. Effective Date.

.01 The filing instructions with respect to section 4947(a)(1) trusts required to file Form 990-AR and pooled income funds required to file Form 1041-A become effective for taxable years beginning in 1973. The instructions contained in Rev. Proc. 72-25 will be applicable to such trusts until the filing instructions set forth in this Revenue Procedure become applicable.

.02 With respect to all other filing requirements, this Revenue Procedure is effective October 1, 1973, the date of its publication in the Internal Revenue Bulletin.