tailieunhanh - 2012 Instructions for Schedule K (Form 990)

organization that files Form 990 to provide certain information on their outstanding liabilities associated with tax-exempt bond issues. Usually, a bond issue associated with an organization will be issued as qualified 501(c)(3) bonds, but all types of tax-exempt bond issues benefiting the organization are to be reported. A qualified 501(c)(3) bond issue consists of bonds the proceeds of which are used by a section 501(c)(3) organization in furtherance of its charitable purpose. Requirements generally applicable to qualified 501(c)(3) bonds under section 145 include the following: All property financed by the bond issue is to be owned by a section 501(c)(3) organization or a state or local governmental unit; and At least 95% of the net proceeds of the bond issue. | Department of the Treasury Internal Revenue Service 2012 Instructions for Schedule K Form 990 Supplemental Information on Tax-Exempt Bonds Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Purpose of Schedule Schedule K Form 990 is used by an organization that files Form 990 to provide certain information on their outstanding liabilities associated with tax-exempt bond issues. Usually a bond issue associated with an organization will be issued as qualified 501 c 3 bonds but all types of tax-exempt bond issues benefiting the organization are to be reported. A qualified 501 c 3 bond issue consists of bonds the proceeds of which are used by a section 501 c 3 organization in furtherance of its charitable purpose. Requirements generally applicable to qualified 501 c 3 bonds under section 145 include the following All property financed by the bond issue is to be owned by a section 501 c 3 organization or a state or local governmental unit and At least 95 of the net proceeds of the bond issue are used by either a state or local governmental unit or a section 501 c 3 organization in activities which do not constitute unrelated trades or businesses determined by applying section 513 . If the organization has one or more related organizations for example parent and subsidiary relationship it must complete Schedule K Form 990 consistent with the filing s of its related organization s . The same liability should not be reported by more than one of the related organizations. For example if a parent organization issues a tax-exempt bond issue and loans or allocates that issue to a subsidiary organization only one organization either the parent or subsidiary should report the liability on Form 990 and the Schedule K. Similarly if a parent organization loans or allocates the proceeds of a tax-exempt bond issue to a group of subsidiary organizations only one level either the parent or the group of subsidiaries should report the .