Knowledge Base

11539: 990-T - Frequently Asked Questions

990 Tax Exempt

Review the following FAQs about Form 990-T: 

I entered Section 179 expensing in a 990-T return, why is it not flowing to the return? 

Currently, the software does not support Section 179 expensing for Form 990-T.

The total amount of depreciation and 179 expensing may be entered on the override lines available: 

  • In Drake18 and prior, line 21 (under Part II – Deductions Not Taken Elsewhere) on screen 81.
  • In Drake19, line 20 (under Part II – Deductions Not Taken Elsewhere) on screen 81.

Form 4562 may be completed and printed to include with the paper-filed return using the fillable form at IRS.Gov. 

In a 990 return with unrelated business income, Form 990-T should calculate and display tax on page 2 in view, why are there are no results?

Starting in Drake18, for 990-T to calculate you must enter at least the name of the unrelated trade or business on screen 81. You must complete 990-T for each unrelated trade or business. To do that, use Multi-form Code box and be sure to enter each unrelated trade or business name. 

In Drake17 and prior, you must complete line G of screen 80 (Form 990T tab), where you select what kind of organization is filing to identify the appropriate tax rate to be applied. The choices are 501(c) corporation501(c) trust401(a) trust or Other trust. Your selection of Type of organization on screen 1 does not carry to screen 80 line G.

Why do I get EF message 5074 when trying to e-file Form 990-T? (Drake19 and prior)

Form 990-T is not eligible for e-filing in Drake19 and prior. Red message 5074 generates to prevent e-filing.

Starting with Drake20, Form 990-T will be eligible for e-file and there will be an e-filing requirement. At this time (January 2021), 990-T e-file is not yet enabled, however, Drake20 will be updated to allow e-filing at a later date. 

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