How should organizations record the payment transactions made with a controlled entity on 990-EZ?
4.7k views | Last modified 9/17/2020 9:15:15 AM EST | Added by ExpressTaxExempt Team

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

If an organization has engaged in a transaction with a controlled entity, and if the transaction value exceeded $50,000, then they are supposed to file Form 990 instead of 990-EZ and must attach Schedule R along with the information return.
 
A controlled entity is an organization described under section 512(b)(13) which may be a stock or nonstock corporation, association, partnership, LLC, or trust of which the controlling organization owns more than 50% of:

  • The stock of a corporation (measured by voting power or value)
  • The profits or capital interest in a partnership, or
  • The beneficial interest in a trust or other entity.

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