March 31, 2023
EY-annotated Form 990-T highlights changes to 2022 Form and instructions
EY has prepared an annotated version of the 2022 Form 990-T (Exempt Organization Business Income Tax Return) and instructions. These annotated documents (which are attached) show what changes the IRS has made to the form and instructions for tax year 2022, and highlight and explain changes to the form and instructions from tax year 2021.
Most of the changes to the 2022 Form 990-T and instructions are relatively minor clarifications and updates. Some of the more significant changes include:
- Page 1, Block G: The 2022 form now includes a check box for "state college/university" as an organization type.
- The instructions note that the Inflation Reduction Act of 2022 (IRA) imposed a corporate alternative minimum tax (CAMT) under IRC Section 55. For tax years beginning after 2022, applicable corporations within the meaning of IRC Section 59(k), including tax-exempt organizations whose annual income exceeds a certain threshold, may be required to pay an alternative minimum tax.
- The instructions explain some of the new tax credits available to tax-exempt organizations under the IRA, including the clean energy investment and production credits (allowed as general business credits on Form 990-T).
- The instructions note that the NAICS (North American Industry Classification System) codes, used for classifying and separately reporting separate unrelated trades or businesses on Form 990-T, were revised in 2022.
- The instructions explain how an exempt organization that discontinues an unrelated trade or business activity needs to suspend NOLs from that activity if the organization does not conduct any other unrelated trades or businesses within the same NAICS silo as that activity.
These relatively minor updates to the 2022 Forms 990-T and instructions continue to reflect and explain changes to federal tax laws and guidance affecting tax-exempt organizations. Tax-exempt organizations should continue to carefully review the instructions when completing Form 990-T, particularly in regards to UBTI siloing, and confirm that reporting complies with federal tax law.
Please contact your Ernst & Young LLP tax professional with any questions.
For additional information concerning this Alert, please contact:
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor
2022 Form 990-T and Sch A Annotated
2022 Form 990-T Annotated Instructions