Yes. Private foundations are subject to excise taxes in the Internal Revenue Code (IRC) 4940 to 4946 whereas public charities are not. These taxes are the net investment income taxes under IRC section 4940; the self-dealing acts rules under section IRC 4941; failure to distribute income rules under IRC section 4942; the business enterprise rules under IRC section 4943; jeopardizing investments in IRC section 4944; and taxable expenditures under IRC section 4945. Private foundations file Form 990-PF annually. There are numerous questions related to these excise tax provisions on that form. In certain circumstances if the excise taxes are involved an additional filing of IRS Form 4720 must be made. Section 7.27 of the IRS Tax Exemption Manual has a significant amount of information on these various excise taxes. An index of this information is available in Part 7. Rulings and Agreements.
