Form 8870: Information Return for Transfers Associated With Certain Personal Benefit Contracts

Form 8870: Information Return for Transfers Associated With Certain Personal Benefit Contracts

This article provides an overview of Form 8870, which is required to be filed by charitable organizations who paid premiums on certain life insurance, annuity, and/or endowment contracts after February 8, 1999. It guides readers on when and where to file, obtaining an extension of time, penalties, and other returns that may need to be filed.

What is Form 8870?

Form 8870, also known as the ‘Information Return for Transfers Associated with Certain Personal Benefit Contracts Required in Connection with Charitable Contributions’, is a form used by certain charitable organizations and trustees described in sections 170(c) and 664(d) of the Internal Revenue Code. It is completed if the organization has paid premiums after February 8, 1999 on certain life insurance, annuity, and endowment contracts (also known as personal benefit contracts), or when there is an understanding or expectation that any other person will pay such premiums or transfer funds for the premiums. Form 8870 requires the organization to report the amount of premiums paid, the name, address, and taxpayer ID of each beneficiary under the contract, as well as any other information the Secretary may require. There are exceptions to this form as certain sections can allow deductions. This form must be filed by certain dates, and there are penalties for failure to file as well as other information returns the organization must also complete.

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IRS Form 8870 – Who Needs to Fill It Out?

Section 170(f)(10) of the IRS requires charitable organizations described in section 170(c) and charitable remainder trusts described in section 664(d) to complete and file Form 8870 if they paid premiums after February 8, 1999, on certain life insurance, annuity, and endowment contracts (called “personal benefit contracts”). The form must include information about any premium payments made by the organization or any other person, the name, address and taxpayer identification number of each beneficiary, and any other information requested by the IRS. Generally, these forms must be filed by the fifteenth day of the fifth month after the end of the tax year; if the due date falls on a Saturday, Sunday, or legal holiday, the return must be filed on the following business day. Additionally, the organization may need to file Form 4720 for any excise taxes they are liable for, and either Form 990, 990-EZ, 990-PF, or 5227 for informational purposes. An organization can also opt to file for an extension of time to file using Form 8868.

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Step-by-Step: Form 8870 Instructions For Filling Out the Document

To complete Form 8870, a charitable organization described in section 170(c) or a charitable remainder trust described in section 664(d) must include the time period, the organization’s name and address, its EIN, a phone number, and type of organization. In Parts A-D, information regarding the personal benefit contracts paid for by the organization or treated as paid by the organization should be included such as the item number, premiums paid, beneficiary information, and transferors. An amended return may be filed, Form 8868 may be used to request an extension, and Form 4720 must be filled out with regard to excise taxes. Finally, Form 8870 must be signed by an authorized officer and Form 8822 should be used if the address changes.

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Below, we present a table that will help you understand how to fill out Form 8870.

Information Required for Form 8870 Details
Organization Information Include organization name, address, EIN, and contact details
Personal Benefit Contracts Provide information on contracts, premiums, beneficiaries, and transferors
Amended Return File an amended return if needed
Excise Taxes Fill out Form 4720 for excise taxes
Signature Form 8870 must be signed by an authorized officer
Address Change Use Form 8822 if the organization’s address changes

Do You Need to File Form 8870 Each Year?

Generally, section 170(f)(10) requires a charitable organization or charitable remainder trust to complete and file Form 8870 if premiums are paid on certain life insurance and/or endowment contracts; the form is due by the fifteenth day of the fifth month after the end of the tax year, or April 15 for trusts. An extension may be available; an amended return may be needed; and there can be penalties for non-compliance. Excise taxes and information returns may also need to be filed. For help, the IRS offers a toll-free telephone service.

Download the Official IRS Form 8870 PDF

On the official IRS website, you will find a link to download Form 8870. However, to make it easier for you, we are providing the link in our article, which comes directly from the official website! Click to download: Form 8870


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