When is the filing organization required to treat the activities of a related organization as its own activities for Form 990 reporting purposes?
Whether and the extent to which an organization must include in its Form 990 the activities of a related organization depend upon the type of related organization.
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Disregarded entities. Except for reporting of disregarded entities in Schedule R PDF, Part I, disregarded entities are treated as part of the organization rather than as separate entities for Form 990 reporting purposes. Accordingly, all activities of a disregarded entity of which the filing organization is the sole member are to be reported in the filing organization¡¯s Form 990. See Appendix F, Form 990 instructions PDF, for more information on how activities of disregarded entities are to be reported on certain lines.
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Partnerships. In general, the activities of a partnership are treated as the activities of the filing organization, in accordance with the filing organization¡¯s proportionate interest in the partnership. See Appendix F for more information on how activities of partnerships are to be reported on certain lines.
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Corporations. In general, the activities of a corporation in which the filing organization has an ownership interest are not treated as the activities of the filing organization, unless the corporation (1) is acting as the filing organization¡¯s agent, or (2) the corporation is a sham (for instance, lacks a bona fide business purpose and is not conducting business).