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.
Disregarded entities. Except for reporting of disregarded entities in Schedule R, 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, for more information on how activities of disregarded entities are to be reported on certain lines.
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.
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).