What This Notice Means

IRS records show you didn't file a required Form 990-T, Exempt Organization Business Income Tax Return. Form 990-T reports unrelated business income, which is income from a trade or business that isn't substantially related to the organization's exempt purpose.

What to Do

  • If you filed in the last four weeks using the same name and EIN on the notice, disregard the notice.
  • Otherwise, file Form 990-T immediately, following the instructions on the notice.
  • If you filed more than four weeks ago or used a different name or EIN, complete the Response Form and mail it in the envelope provided with a signed and dated copy of the return.
  • If you don't think you need to file, complete the Response Form and mail it in the envelope provided or fax it to the number in the notice.

Who Must File Form 990-T

Any organization exempt under section 501(a) or section 529(a) must file Form 990-T if it has gross unrelated business income of $1,000 or more for the tax year. Other entities that must file are listed in the Form 990-T instructions.

When It's Due

For employees' trusts under section 401(a), IRAs (including SEPs and SIMPLEs), Roth IRAs, Coverdell ESAs, and Archer MSAs, Form 990-T is due by the 15th day of the 4th month after the end of the tax year. All other organizations file by the 15th day of the 5th month. A due date on a weekend or legal holiday moves to the next business day.

What to Review

  • Your organization's filing requirements for exempt organizations.
  • Publication 557, Tax-Exempt Status for Your Organization.
  • The IRS guidance on unrelated business income tax.

If your organization earns income from advertising, rentals, sales, or other activities outside its mission, look closely at whether that income is unrelated business income before you answer.

If you received a CP259D notice and need help with unrelated business income filings, call us at (813) 229-7100.