Schedule 851-K: Kentucky Affiliations and Payment Schedule (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule 851-K identifies the parent corporation and subsidiaries included in an elective consolidated income tax return. It reports their tax payments, prior-year credits, and stock ownership information for each subsidiary.
Who files this form
A corporation filing a Kentucky elective consolidated tax return under KRS 141.201 must complete Schedule 851-K and attach it to Form 720, the Kentucky Corporation Income Tax and Limited Liability Entity Tax (LLET) Return.
The schedule identifies the parent corporation, each subsidiary included in the return, and their respective tax payments.
What you'll need
Have Form 720 and the following information ready to complete Schedule 851-K:
- The name, federal identification number (FEIN), and Kentucky Corporation/LLET Account Number, if applicable, for the parent and each subsidiary included in the return.
- Each corporation’s LLET and corporation income tax payments, including prior-year overpayments applied, estimated tax payments, and amounts paid with extension Form 720EXT.
- Each subsidiary’s stock ownership information: percent of value, percent of voting power, and the schedule numbers of the corporations that own it.
If the parent has more than eight subsidiaries, attach additional Schedules 851-K as needed.
How to file
Complete Schedule 851-K and attach it to the elective consolidated income tax return, Form 720.
- List the parent corporation and all subsidiaries included in the return.
- On line 1, enter the parent’s LLET and corporation income tax payments in the applicable payment fields.
- On lines 2–9, enter each subsidiary’s payments and stock ownership information.
- Attach additional Schedules 851-K if the parent has more than eight subsidiaries.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Leaving out a subsidiary. The form directs you to list the parent and all subsidiaries included in the elective consolidated return. This information helps avoid unnecessary Department of Revenue correspondence, such as delinquency notices to subsidiaries.
- Not adding schedules when needed. Attach additional Schedules 851-K if the parent has more than eight subsidiaries.
- Forgetting the attachment. Schedule 851-K must be attached to Form 720 when filing an elective consolidated return.
Questions people ask
Which corporations are included in an elective consolidated return?
The form states that, for tax years beginning on or after January 1, 2019, an affiliated group may elect to file a consolidated return that includes all members of the federal affiliated group.
What if the parent has more than eight subsidiaries?
Attach additional Schedules 851-K as needed.
Which tax payments belong on the schedule?
Include LLET and corporation income tax payments: prior-year overpayments applied, estimated tax payments, and amounts paid with extension Form 720EXT. Report the parent’s payments on line 1 and each subsidiary’s payments on lines 2–9.
What does “Owned by Corporation No.” mean?
Enter the schedule number of each corporation that owns the subsidiary. For example, if subsidiary number 2 is owned by parent number 1, enter 1. If it is owned by corporations numbered 1, 7, and 9, enter 1, 7, 9.