Instructions For Schedule R (Form 990) - 2016

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Schedule R
(Form 990)
Related Organizations and Unrelated Partnerships
Overview
Relationships
Section references are to the Internal Revenue
Code unless otherwise noted.
Part I of Schedule R (Form 990) requires
An organization, including a nonprofit
identifying information on any
organization, a stock corporation, a
Future developments. For the latest
organizations that are treated for federal
partnership or limited liability company, a
information about developments related to
tax purposes as disregarded entities of
trust, and a governmental unit or other
Form 990 and its instructions, such as
the filing organization. Part II requires
government entity, is a related
legislation enacted after they were
identifying information on related
organization to the filing organization if it
published, go to IRS.gov/Form990.
tax-exempt organizations. Part III requires
stands, at any time during the tax year, in
identifying information on any related
one or more of the following relationships
organizations that are treated for federal
to the filing organization.
General Instructions
tax purposes as partnerships. Part IV
Parent—an organization that controls
Note. Terms in bold are defined in the
requires identifying information on any
(see definitions of control under Definition
Glossary of the Instructions for Form 990,
related organizations that are treated for
of Control) the filing organization.
Return of Organization Exempt From
federal tax purposes as C or S
Subsidiary—an organization controlled
Income Tax.
corporations or trusts. Part V requires
by the filing organization.
information on transactions between the
Brother/Sister—an organization
Purpose of Schedule
organization and related organizations
controlled by the same person or persons
(excluding disregarded entities). Part VI
that control the filing organization.
Schedule R (Form 990) is used by an
requires information on an unrelated
Supporting/Supported—an organization
organization that files Form 990 to provide
organization taxable as a partnership
that is (or claims to be) at any time during
information on related organizations, on
through which the organization conducted
the organization's tax year (i) a
certain transactions with related
more than 5% of its activities (as
supporting organization of the filing
organizations, and on certain unrelated
described in Part VI).
organization within the meaning of section
partnerships through which the
509(a)(3), if the filing organization is a
organization conducts significant
Parts I–VI of Schedule R (Form 990)
supported organization within the
activities.
may be duplicated if additional space is
meaning of section 509(f)(3), or (ii) a
Who Must File
needed to report additional related
supported organization, if the filing
organizations for Parts I–IV, additional
organization is a supporting organization.
The chart below sets forth which
transactions for Part V, or additional
Sponsoring Organization of a VEBA—
organizations must complete all or a part
unrelated organizations for Part VI. Use as
an organization that establishes or
of Schedule R and attach Schedule R to
many duplicate copies as needed, and
maintains a section 501(c)(9) voluntary
Form 990. If an organization isn't required
number each page of each part.
employees' beneficiary association
to file Form 990 but chooses to do so, it
(VEBA) during the tax year. A sponsoring
must file a complete return and provide all
Part VII of Schedule R (Form 990) may
organization of a VEBA also includes an
of the information requested, including the
be used to provide additional information
employee organization, association,
required schedules.
in response to questions in Schedule R.
committee, joint board of trustees, or
other similar group of representatives of
the parties which establish or maintain a
Type of filer
IF you answer “Yes” to . . .
THEN you must complete . . .
VEBA.
Contributing Employer of a VEBA—an
All organizations
Form 990, Part IV, line 33
Schedule R, Part I.
employer that makes a contribution or
(regarding disregarded entities)
contributions to the VEBA during the tax
year.
All organizations
Form 990, Part IV, line 34
Schedule R, Parts II, III, IV, and V,
(regarding related organizations)
line 1, as applicable.
Although a VEBA must report
sponsoring organizations and contributing
All organizations
Form 990, Part IV, line 35b
Schedule R, Part V, line 2.
employers as related organizations,
(regarding payments from or
sponsoring organizations and contributing
transactions with controlled
employers shouldn't report a VEBA as a
entities)
related organization, unless the VEBA is
Section 501(c)(3) organization
Form 990, Part IV, line 36
Schedule R, Part V, line 2.
related to the sponsoring organization or
(regarding transfers to exempt
contributing employer in some other
noncharitable related
capacity listed above.
organizations)
VEBA contributing employers and
All organizations
Form 990, Part IV, line 37
Schedule R, Part VI.
sponsoring organizations. If the filing
(regarding conduct of activity
organization is a section 501(c)(9) VEBA,
through unrelated partnership)
it must list its sponsoring organizations
and contributing employers on Schedule R
Nov 03, 2017
Cat. No. 51519M

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