These frequently asked questions and tips address various questions pertaining to Form 990 reporting of arrangements between a filing organization and its related organizations, including disregarded entities, exempt organizations, partnerships, trusts, and corporations. Schedule R, Related Organizations and Unrelated Partnerships , is used to identify, and provide certain information regarding, related organizations and certain unrelated partnerships. These FAQs and Tips also address the general reporting requirements for group returns.

1. Schedule R requires certain information reporting regarding related organizations. What are related organizations for purposes of Schedule R?
2. How is control defined for nonprofit organizations and organizations without owners or persons with beneficial interests?
3. How is control defined for stock corporations or other organizations with owners or persons with beneficial interests?
4. What information about a related organization is required to be reported on Schedule R?
5. Schedule R, Part V also requires reporting of transactions between the filing organization and its related organizations. Do all transactions between the filing organization and its related organizations have to be reported?
6. What is the difference between a related organization and a controlled entity for purposes of Schedule R? Why does the IRS require certain transactions between the filing organization and a controlled entity to be reported on the schedule, even if the transaction amount is less than the reporting thresholds applicable to other transactions with related organizations?
7. Besides Schedule R, what are some other examples of other parts of the Form 990 and schedules that require the filing organization to provide information regarding certain of its related organizations?
   Why does Part VI of Schedule R require information regarding certain partnerships even though they are not related organizations? [
8. When is the filing organization required to treat the activities of a related organization as its own activities for Form 990 reporting purposes?
9. When is the filing organization required to treat the activities of a related organization as its own activities for Form 990 reporting purposes?
10. Should a filing organization report on Schedule R other organizations in which it has an indirect ownership interest, such as second and third tier subsidiaries?
11. What are the related organization reporting requirements for organizations filing group returns?
12. What are the related organization reporting requirements for organizations filing Form 990-EZ?

View and print all Schedule R tips (Adobe).

Additional information

• Form 990 Filing Tips Archive
• Mini-course - 990 schedules (including Schedule R) - available on IRS' Stayexempt.org site

Source: irs.gov

__________________
Find a CPA near you!

AskTaxGuru - Free Tax Resource