Schedule 851-K: Kentucky Affiliations and Payment Schedule (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
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 subsidiary stock ownership information.
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 the following information available to complete the schedule:
- The parent corporation’s and each included subsidiary’s name, federal identification number (FEIN), and Kentucky Corporation/LLET Account Number, if applicable.
- Each corporation’s LLET and corporation income tax payments, including prior-year overpayments applied, estimated payments, and payments made with extension Form 720EXT.
- Each subsidiary’s stock ownership information: percent of value, percent of voting power, and the corporation number or numbers of its owners within the affiliated group.
If the parent has more than eight subsidiaries, additional Forms 851-K are required.
How to file
Attach the completed Schedule 851-K to the elective consolidated income tax return, Form 720.
- Enter the parent corporation’s identifying information and tax payments on line 1.
- Enter each included subsidiary’s identifying information and tax payments on lines 2 through 9.
- Complete the stock ownership information for each subsidiary on lines 2 through 9.
- Attach additional Forms 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
- Using a six-digit account number without leading zeros. The Kentucky Corporation/LLET Account Number must be nine digits. If it has six digits, add leading zeros.
- Leaving out subsidiaries. The form directs you to list the parent corporation and all subsidiaries. Attach additional Forms 851-K if there are more than eight subsidiaries.
- Not attaching the schedule to Form 720. Schedule 851-K must accompany the elective consolidated return.
Questions people ask
Why is Schedule 851-K required?
It identifies the corporations included in the affiliated group and their payments. This helps avoid unnecessary Department of Revenue correspondence, such as delinquency notices to subsidiaries.
What if the parent corporation has more than eight subsidiaries?
Attach additional Forms 851-K as needed.
Which tax payments belong on the schedule?
Report LLET and corporation income tax paid by each corporation, including prior-year overpayments applied, estimated tax payments, and amounts paid with extension Form 720EXT. Use line 1 for the parent and lines 2 through 9 for subsidiaries.
What does “Owned by Corporation No.” mean?
Enter the number of each corporation that owns the subsidiary. For example, if subsidiary number 2 is owned by parent corporation number 1, enter 1. If it is owned by corporation numbers 1, 7, and 9, enter 1, 7, 9.