Can I report tax-exempt liabilities for my subsidiary organizations in the Schedule K, Form 990?
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Last modified 3/14/2023 9:22:47 AM EST |
990-PF 990-N 990-EZ 990 8868 1120-POL
No, a liability acquired by your organization shouldn't be reported in your subsidiary organizations. For example, if your organization issued a tax-exempt bond and if it is allocated to a subsidiary organization, then only one organization (either the parent, i.e. (you) or the subsidiary) should report the liability while filing Schedule K along with Form 990.
Similarly, if a parent organization loans or allocates a tax-exempt bond issue to a group of its subsidiary organizations, only one of the organizations (either the parent or the group of subsidiaries) must report the liability on Schedule K along with Form 990.