Finding & Reporting Form 990 Filers' Related Organizations
Course Code:
EBMKFRF2
Program Level:
Intermediate
Description:
Mastery of the Form 990 requires ability to identify the filer's "related organizations" (indeed, doing so is THE FIRST preparation step called for in the 990 instructions!) This "990-term-of-art" employs four commonly-found categories: the first three utilize a 990-specific definition of "control" as the basis for determining related organizations due to their "parent," "subsidiary," or "sibling" status; and a fourth applies when a supporting organization is in the mix.
This session will fully illuminate, with real-world examples, the full panoply of nuances that preparers confront in working with each of those four categories. Participants will find multiple take-away tools and tips to master the underlying definitional precepts of direct and indirect "control" the 990 imposes. Thereafter, the materials and author/instructor turn to a complete walk-through of the entirety of preparation points for Parts I-V of the Schedule R, as well as a review of the Schedule's Parts I and VI.
This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event. Learning Objectives:
This session will fully illuminate, with real-world examples, the full panoply of nuances that preparers confront in working with each of those four categories. Participants will find multiple take-away tools and tips to master the underlying definitional precepts of direct and indirect "control" the 990 imposes. Thereafter, the materials and author/instructor turn to a complete walk-through of the entirety of preparation points for Parts I-V of the Schedule R, as well as a review of the Schedule's Parts I and VI.
This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event. Learning Objectives:
After attending this presentation you will be able to...
- Identify the principles by which control vests when determining parent-subsidiary, subsidiary-parent or brother-sister status between the filer and another not-for-profit entity
- Identify how control vests over an entity that is a stock corporation
- Appreciate the nuances of looking for "commonly controlled" related organizations (i.e., sibling organizations)
- Apply diagrams of the most-common indirect control scenarios
- Understand what information is disclosed when reporting as a related organization: a not-for-profit who is tax-exempt in Schedule R, Part II; a corporation or trust in Schedule R, Part V, or an entity taxed as a partnership in Schedule R, Part III
- Recognize the conditions in which transactions with a related organization will need have dollar details disclosed in Schedule R, Part V, line 2
The major topics that will be covered in this course include:
- Exploring the reach of "parent-subsidiary" and "sibling" status when the party who is the subject of "control" is a nonprofit/nonstock entity: finding that the filer is "controlled" or that a third-party nonprofit is a related organization of the filer due to who it is "controlled" by
- Understanding what is considered "control" when a party who would be the related organization is a stock corporation, partnership and/or LLC taxed as a partnership, or trust
- The ramifications of applying the former in cases of related organization status vesting via indirect "control"
- The two automatic status categories of related organizations: supporting organization connections (one entity being a 501(c)(3) with 509(a)(3) sub-classification from connection to another entity) and VEBA-unique categories
- Disclosures required on Schedule R's Parts II-V once the presence of one or more related organizations is ascertained
- Part V additional disclosures when a filer has a related organization who is a "controlled entity" (this via 512(b)(13)'s UBIT-reach in the case of certain revenues from controlled organizations)
- Review of the two 'other' Parts of Schedule R: Part I on disregarded entities, and Part VI on unrelated partnerships
