How should foreign investments be reported in Part I of Schedule F, Form 990?
The following rules apply:
Investments must be reported on a region-by-region basis on Line 3, separately from other activities in the region.
All investments in a particular region may be aggregated for this purpose. For example, all investments in South America may be reported together in one line.
- In reporting investments in a region, only columns (a), (d) and (f) must be completed; columns (b), (c), and (e) need not be completed with respect to investments.
- Column (a) would reflect the region, as described in the instructions, to Schedule F, of the investment.
- The region of a foreign investment entity is determined by its legal domicile (country whose law governs the entity’s internal affairs).
In the case of a foreign pass-through entity such as a foreign partnership, an organization is not required to report the region of the underlying investments held by the pass-through entity, but may report the region based on the legal domicile of the foreign pass-through entity.
The organization may use the term investments to describe the foreign activity in column (d).
The book value of foreign investments in each particular region would be reported in Part I, column (f) for that region.
An organization need not report, as an investment activity in Schedule F, foreign investments indirectly held through a domestic (United States) pass-through entity, because the domicile of the pass-through entity is not a foreign location.