Should I report business relationships with other organizations while filing Form 990?
1.2k views | Last modified 12/26/2023 5:19:54 AM EST |

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

Yes, if any of your organization's current officers, directors, trustees, or key employees had a family or a business relationship with an employee of any other organization for the tax year, then the filing organization must report them on a Form 990 return.

Also, the organization must identify those employees of other organizations and state their Relationship in Schedule O, Supplemental Information, and attach it along with the return.

Reporting relationship with other organizations with Tax 990’s Interview-based Filing Style

  1. Log into your Tax 990 account.
  2. On the dashboard, click on the "Start New Return" button
  3. Select the "Tax Year" and "Form 990" option on the list of Federal Return
  4. Enter your organization details and click "Next."
  5. On the "Organization Tax Year" page, select the tax year calendar or fiscal, for which you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form.
  6. Under the Governance, Management, and Disclosure section, click "Start" in Voting Members & Relationship.
  7. Select "Yes" for the condition stated under Relationship and add the following details: Name of your employee, Type of Relationship, and Other organization's employee name
  8. Click Next and follow the subsequent steps as prompted
  9. Review the details, Pay, and click the “Transmit” button to transmit your return to the IRS.

Reporting relationship with other organizations with Tax 990’s Form-based Filing Style

To report your organization’s relationship with other organizations using our form-based filing style, please go to Part VI, Section A, line 2.

In line 2, select “Yes” for the question, “Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?”.

Now, a popup appears and prompts you to list the officer, director, trustee, or key employee details with whom the organization had a family or a business relationship. Enter those details and click on the Save button.

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