Instructions For Schedule R (Form 990) - Related Organizations And Unrelated Partnerships - 2008

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Department of the Treasury
Internal Revenue Service
Instructions for Schedule R
(Form 990)
Related Organizations and Unrelated Partnerships
Part IV requires identifying information on
year (i) a supporting organization of the
Section references are to the Internal
any related organization that is treated for
filing organization within the meaning of
Revenue Code unless otherwise noted.
federal tax purposes as a C or S
section 509(a)(3), if the filing organization
General Instructions
corporation or trust. Part V requires
is a supported organization within the
information on transactions between the
meaning of section 509(f)(3), or (ii) a
Note. Terms in bold are defined in the
organization and related organizations
supported organization, if the filing
Glossary of the Instructions for Form 990.
(excluding disregarded entities). Part VI
organization is a supporting organization.
requires information on an unrelated
Exception. Disregarded entities are
Purpose of Schedule
organization taxable as a partnership
treated as related organizations for
Schedule R (Form 990) is used by an
through which the organization conducted
purposes of reporting on Schedule R
organization that files Form 990 to
more than 5% of its activities (as
(Form 990), Part I, but not for purposes of
provide information on related
described below).
reporting transactions with related
organizations, on certain transactions
organizations in Part V, or otherwise on
Use Schedule R-1 (Form 990),
with related organizations, and on certain
Form 990. A disregarded entity of an
Continuation Sheet for Schedule R (Form
unrelated partnerships through which the
organization related to the filing
990), to report additional related
organization conducts significant
organization is treated as part of the
organizations for Parts I – VI. Use as
activities.
related organization and not as a
many Schedules R-1 (Form 990) as
separate entity. See Appendix F in the
needed. Use Schedule O (Form 990) if
Who Must File
Instructions for Form 990.
additional space is needed for responses
The chart below sets forth which
to particular questions.
Definition of Control
organizations must complete all or a part
Relationships
of Schedule R and attach Schedule R to
1. In the case of nonprofit
Form 990. If an organization is not
An organization is a related organization
organizations and other organizations
required to file Form 990 but chooses to
to the filing organization if it stands in one
without owners or persons having
do so, it must file a complete return and
or more of the following relationships to
beneficial interests, whether such
provide all of the information requested,
the filing organization.
organization is taxable or tax-exempt,
including the required schedules.
Parent — an organization that controls
control means:
(see definition of “control” below) the filing
a. In the case of a parent/subsidiary
Overview
organization.
relationship between nonprofit
Part I requires identifying information on
Subsidiary — an organization controlled
organizations:
any organization that is treated for federal
by the filing organization.
i. The power to remove and replace
tax purposes as a disregarded entity.
Brother/Sister — an organization
(or to appoint or elect, if such power
Part II requires identifying information on
controlled by the same person or persons
includes a continuing power to appoint or
related tax-exempt organizations. Part III
that control the filing organization.
elect periodically or in the event of
requires identifying information on any
Supporting/Supported — an
vacancies) a majority of the nonprofit
related organization that is treated for
organization that is (or claims to be) at
organization’s or other organization’s
federal tax purposes as a partnership.
any time during the organization’s tax
directors or trustees, or
ii. A management or board overlap
Type of filer
IF you answer “Yes” to . . .
THEN you must file . . .
where a majority of the subsidiary
organization’s directors or trustees are
All organizations
Form 990, Part IV, line 33
Schedule R, Part I.
trustees, directors, officers,
(regarding disregarded entities)
employees, or agents of the parent
organization.
All organizations
Form 990, Part IV, line 34
Schedule R, Parts II-IV and V,
b. In the case of a brother/sister
(regarding related
line 1 as applicable.
relationship between nonprofit
organizations)
organizations, the same persons
constitute a majority of the members of
All organizations
Form 990, Part IV, line 35
Schedule R, Part V, line 2.
the governing body in both organizations.
(regarding controlled entities
2. In the case of stock corporations
under section 512(b)(13))
and other organizations with owners or
persons having beneficial interests,
Section 501(c)(3) organization
Form 990, Part IV, line 36
Schedule R, Part V, line 2.
whether such organization is taxable or
or
(regarding transfers to exempt
tax-exempt, any of the following
section 4947(a)(1) trust
non-charitable related
relationships:
organizations)
a. Ownership of more than 50% of the
stock (by voting power or value) of a
All organizations
Form 990, Part IV, line 37
Schedule R, Part VI.
(regarding conduct of activity
corporation.
through unrelated partnership)
b. Ownership of more than 50% of the
profits or capital interest in a partnership.
Cat. No. 51519M

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