Form 990 Schedule R

What is the Form 990 Schedule R

The Form 990 Schedule R is a supplementary form used by tax-exempt organizations in the United States to report information regarding related organizations. This form is part of the larger Form 990, which is the annual information return required by the Internal Revenue Service (IRS) for tax-exempt entities. Schedule R specifically focuses on the relationships between the filing organization and its related organizations, including subsidiaries, affiliates, and other entities that may have a significant influence on the organization’s operations or finances.

How to use the Form 990 Schedule R

To effectively use the Form 990 Schedule R, organizations must first determine whether they have any related organizations that need to be reported. This involves identifying entities that are controlled by or that control the filing organization. Once identified, the organization fills out the schedule by providing details such as the name, address, and type of relationship with each related organization. Accurate reporting is crucial, as it helps ensure compliance with IRS regulations and provides transparency about the organization’s operations.

Steps to complete the Form 990 Schedule R

Completing the Form 990 Schedule R involves several key steps:

• Identify Related Organizations: Determine which entities are related to your organization based on control or significant influence.
• Gather Information: Collect necessary details about each related organization, including their names, addresses, and the nature of the relationship.
• Fill Out the Form: Enter the collected information into the appropriate sections of Schedule R, ensuring accuracy and completeness.
• Review and Verify: Double-check all entries for correctness and ensure that all required information is included.
• File with Form 990: Submit the completed Schedule R along with your Form 990 by the appropriate deadline.

Key elements of the Form 990 Schedule R

Several key elements are essential when filling out the Form 990 Schedule R:

• Identification of Related Organizations: Clearly list all related organizations and their respective details.
• Type of Relationship: Specify the nature of the relationship, such as parent, subsidiary, or affiliate.
• Financial Transactions: Disclose any financial transactions between the filing organization and its related organizations.
• Control Information: Provide information on how control is exercised over related organizations.

IRS Guidelines

The IRS provides specific guidelines for completing the Form 990 Schedule R. These guidelines emphasize the importance of transparency and accuracy in reporting relationships with related organizations. Organizations are encouraged to consult the IRS instructions for Form 990 and Schedule R to ensure compliance with all reporting requirements. Adhering to these guidelines helps mitigate the risk of penalties for non-compliance and ensures that the organization maintains its tax-exempt status.

Filing Deadlines / Important Dates

Organizations must be aware of the filing deadlines for the Form 990 Schedule R. Generally, the Form 990, including all schedules, is due on the fifteenth day of the fifth month after the end of the organization’s fiscal year. For organizations operating on a calendar year, this typically means the deadline is May 15. Extensions may be available, but it is crucial to file any requests for extensions before the original deadline to avoid penalties.