Which organizations are required to file Schedule R with Form 990?
3.4k views |
Last modified 3/14/2023 9:31:15 AM EST |
Generally, organizations that report information on related organizations and transactions made with them file Schedule R form along with its annual information return.
However, these organizations that attach Schedule R may choose to complete either all the Parts or the required Parts of the schedule, which depends on the answer provided by them in Part IV, Checklist of Required Schedules of Form 990.
- Organizations that own 100% of a disregarded entity from the organization under Regulations sections 301.7701-2 and 301.7701-3 must complete Schedule R, Part I
- Organizations that have been related with any tax-exempt or a taxable entity of a related organization must complete Schedule R, Part II, III, or IV, and Part V, line 1
- Organizations that received any payment from or engaged in any transaction with a controlled entity under section 512(b)(13) must complete Schedule R, Part V, line 2
- Section 501(c)(3) organizations that made any kind of transactions to an exempt non-charitable must complete Schedule R, Part V, line 2
- Organizations that conducted more than 5% of their activities through an unrelated partnership for federal income tax purposes must complete Schedule R, Part VI.