Rev. Proc. 71-14

Section 1. Purpose

The purpose of this Revenue Procedure is to clarify the return filing requirements for charitable trusts for taxable years beginning after December 31, 1969.

Sec. 2. Background

The charitable trust returns to which this Revenue Procedure is applicable are the following:

Exempt organizations returns, Forms 990 and 990T;

Annual report by private foundations, Form 990-AR or equivalent;

Federal income tax return, Form 1041, U.S. Fiduciary Income Tax Return;

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

Federal information return, Form 1041-B, Charitable Remainder Trusts; and,

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

The charitable trusts that must file certain of these returns are: Nonexempt charitable trusts described in section 4947(a)(1) of the Internal Revenue Code;

Trusts exempt from income tax under section 501(a) of the Code as organizations described in section 501(c)(3) of the Code; and,

All split interest trusts described in section 4947(a)(2) of the Code in which there are both charitable and noncharitable interests, without regard to the date of transfer in trust, including charitable remainder trusts described in section 664 of the Code and pooled income funds described in section 642(c)(5) of the Code.

Sec. 3. Filing of Form 990 by Charitable Trusts Described in Section 4947(a)(1) of the Code

Notwithstanding any instructions accompanying Form 990 or Form 1041-A, charitable trusts described in section 4947(a)(1) of the Code are required to file Form 990 only if they are treated as private foundations within the meaning of section 509(a) of the Code. Nonexempt charitable trusts required to file Form 990 need complete only the following portions of the return:

Page 1. Name, address, block for nonexempt charitable trusts, and signatures.

Page 1. Part II. -- Lines 19 and 20.

Page 3. Part III. -- Lines 1 through 19 (to extent applicable), information required of foreign organizations (if applicable), and Questions A. through D. (also complete Form 4720 if required).

Page 4. Entire page to extent applicable.

Sec. 4. Table of Filing Requirements

This table identifies the types of charitable trusts discussed in this Revenue Procedure, and shows the returns each type of charitable trust may be required to file.

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b To be filed by all private foundations regardless of gross receipts and all other trusts whose gross receipts are normally more than $5,000 annually.

c To be filed if a private foundation and if more than $5,000 of assets; need not be filed if form 1041-A is required.

d To be filed unless all net income is required to be distributed currently to the beneficiaries.

e Not to be filed unless unrelated business income of $1,000 or more.

f Not to be filed unless unrelated business income.

g Required only if answered "yes" to any of questions A. through D. of Form 990, or any of questions 2, 3, 4(b) and 4(c) of Part IV. Form 1041-A.

¹ Also released as Technical Information Release 1073, dated April 8, 1971.