Kentucky Schedule 851-K, also called the Kentucky Affiliations and Payment Schedule, is used when a corporation files an elective consolidated Kentucky Corporation Income Tax and Limited Liability Entity Tax return. The schedule identifies the parent corporation and each subsidiary included in the affiliated group. It also reports each corporation’s Kentucky Corporation/LLET account number, FEIN, tax payments, prior year credits, estimated payments, extension payments, and stock ownership information. This form helps Kentucky match the payments and account records of the parent and subsidiaries included in the elective consolidated return. It also helps prevent unnecessary notices, such as delinquency notices being sent to subsidiaries that are included in the consolidated filing. The schedule is required when an affiliated group elects to file a consolidated return that includes all members of the federal affiliated group under Kentucky rules.
How To File Kentucky Schedule 851-K
Attach Schedule 851-K to the elective consolidated Kentucky Corporation Income Tax and LLET Return, Form 720. Complete the schedule by listing the parent corporation first, then each subsidiary included in the elective consolidated return. If the parent corporation has more than eight subsidiaries, use additional Schedule 851-K forms as needed. Enter the parent and subsidiary information carefully because Kentucky uses this schedule to identify which corporations are included in the affiliated group and how their payments should be applied.
How To Complete Kentucky Schedule 851-K
Line 1: Schedule 851-K
Use this schedule for Kentucky affiliations and payment reporting when filing an elective consolidated return.
Line 2: Tax Year 2025
Use this version for the 2025 tax year.
Line 3: Commonwealth Of Kentucky Department Of Revenue
This identifies the Kentucky tax agency that receives the schedule with the return.
Line 4: Kentucky Affiliations And Payment Schedule
This title shows that the form reports affiliated corporations and their Kentucky tax payments.
Line 5: See Instructions
Review the instructions before completing the schedule, especially if the group has multiple subsidiaries or complex ownership.
Line 6: Attach To The Elective Consolidated Income Tax Return, Form 720
Attach the completed schedule to Form 720 when the corporation files an elective consolidated Kentucky return.
Line 7: Page Number
Enter the current page number and total number of pages. For example, write Page 1 of 1 if only one schedule is used.
Line 8: List The Parent Corporation And All Subsidiaries
List the parent corporation on Line 1 and each subsidiary on Lines 2 through 9. If more space is needed, attach additional schedules.
Parent Corporation Information
Line 1: Corporation Number
The parent corporation is listed as corporation number 1.
Line 1: Name Of Parent Corporation
Enter the full legal name of the parent corporation.
Line 1: FEIN
Enter the parent corporation’s federal employer identification number.
Line 1: Kentucky Corporation/LLET Account Number
Enter the parent corporation’s Kentucky Corporation/LLET account number, if applicable.
Line 1: Account Number Formatting Rule
The Kentucky Corporation/LLET account number must contain 9 digits. If the account number has only 6 digits, add leading zeros at the beginning.
Line 1: Prior Year Credit
Enter the amount of overpayment or credit from the prior year that was applied to the current year for the parent corporation.
Line 1: Estimated Payments
Enter the total Kentucky estimated tax payments made by the parent corporation.
Line 1: Extension Payment
Enter the amount paid by the parent corporation with Kentucky extension Form 720EXT.
Line 1: Total Parent Tax Payments Rule
Include all LLET and corporation income tax paid by the parent corporation, including prior year credit, estimated payments, and extension payments.
Subsidiary Corporation Information
Line 2: Corporation Number
Use Line 2 for the first subsidiary corporation included in the elective consolidated return.
Line 2: Name Of Subsidiary Corporation
Enter the full legal name of the first subsidiary.
Line 2: FEIN
Enter the first subsidiary’s federal employer identification number.
Line 2: Kentucky Corporation/LLET Account Number
Enter the first subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 2: Prior Year Credit
Enter the first subsidiary’s prior year credit or overpayment applied to the current year.
Line 2: Estimated Payments
Enter the first subsidiary’s Kentucky estimated tax payments.
Line 2: Extension Payment
Enter the first subsidiary’s payment made with Form 720EXT.
Line 2: Percent Of Value
Enter the percentage of the subsidiary’s value owned by one or more corporations included in the affiliated group.
Line 2: Percent Of Voting Power
Enter the percentage of the subsidiary’s voting power owned by one or more corporations included in the affiliated group.
Line 2: Owned By Corporation Number
Enter the corporation number of the corporation or corporations that own this subsidiary. For example, enter 1 if the parent corporation owns it.
Line 3: Name Of Subsidiary Corporation
Enter the full legal name of the second subsidiary, if applicable.
Line 3: FEIN
Enter the second subsidiary’s federal employer identification number.
Line 3: Kentucky Corporation/LLET Account Number
Enter the second subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 3: Prior Year Credit
Enter the second subsidiary’s prior year credit or overpayment applied to the current year.
Line 3: Estimated Payments
Enter the second subsidiary’s Kentucky estimated tax payments.
Line 3: Extension Payment
Enter the second subsidiary’s payment made with Form 720EXT.
Line 3: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 3: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 3: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 4: Name Of Subsidiary Corporation
Enter the full legal name of the third subsidiary, if applicable.
Line 4: FEIN
Enter the third subsidiary’s federal employer identification number.
Line 4: Kentucky Corporation/LLET Account Number
Enter the third subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 4: Prior Year Credit
Enter the third subsidiary’s prior year credit or overpayment applied to the current year.
Line 4: Estimated Payments
Enter the third subsidiary’s Kentucky estimated tax payments.
Line 4: Extension Payment
Enter the third subsidiary’s payment made with Form 720EXT.
Line 4: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 4: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 4: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 5: Name Of Subsidiary Corporation
Enter the full legal name of the fourth subsidiary, if applicable.
Line 5: FEIN
Enter the fourth subsidiary’s federal employer identification number.
Line 5: Kentucky Corporation/LLET Account Number
Enter the fourth subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 5: Prior Year Credit
Enter the fourth subsidiary’s prior year credit or overpayment applied to the current year.
Line 5: Estimated Payments
Enter the fourth subsidiary’s Kentucky estimated tax payments.
Line 5: Extension Payment
Enter the fourth subsidiary’s payment made with Form 720EXT.
Line 5: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 5: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 5: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 6: Name Of Subsidiary Corporation
Enter the full legal name of the fifth subsidiary, if applicable.
Line 6: FEIN
Enter the fifth subsidiary’s federal employer identification number.
Line 6: Kentucky Corporation/LLET Account Number
Enter the fifth subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 6: Prior Year Credit
Enter the fifth subsidiary’s prior year credit or overpayment applied to the current year.
Line 6: Estimated Payments
Enter the fifth subsidiary’s Kentucky estimated tax payments.
Line 6: Extension Payment
Enter the fifth subsidiary’s payment made with Form 720EXT.
Line 6: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 6: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 6: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 7: Name Of Subsidiary Corporation
Enter the full legal name of the sixth subsidiary, if applicable.
Line 7: FEIN
Enter the sixth subsidiary’s federal employer identification number.
Line 7: Kentucky Corporation/LLET Account Number
Enter the sixth subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 7: Prior Year Credit
Enter the sixth subsidiary’s prior year credit or overpayment applied to the current year.
Line 7: Estimated Payments
Enter the sixth subsidiary’s Kentucky estimated tax payments.
Line 7: Extension Payment
Enter the sixth subsidiary’s payment made with Form 720EXT.
Line 7: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 7: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 7: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 8: Name Of Subsidiary Corporation
Enter the full legal name of the seventh subsidiary, if applicable.
Line 8: FEIN
Enter the seventh subsidiary’s federal employer identification number.
Line 8: Kentucky Corporation/LLET Account Number
Enter the seventh subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 8: Prior Year Credit
Enter the seventh subsidiary’s prior year credit or overpayment applied to the current year.
Line 8: Estimated Payments
Enter the seventh subsidiary’s Kentucky estimated tax payments.
Line 8: Extension Payment
Enter the seventh subsidiary’s payment made with Form 720EXT.
Line 8: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 8: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 8: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Line 9: Name Of Subsidiary Corporation
Enter the full legal name of the eighth subsidiary, if applicable.
Line 9: FEIN
Enter the eighth subsidiary’s federal employer identification number.
Line 9: Kentucky Corporation/LLET Account Number
Enter the eighth subsidiary’s Kentucky Corporation/LLET account number, if applicable.
Line 9: Prior Year Credit
Enter the eighth subsidiary’s prior year credit or overpayment applied to the current year.
Line 9: Estimated Payments
Enter the eighth subsidiary’s Kentucky estimated tax payments.
Line 9: Extension Payment
Enter the eighth subsidiary’s payment made with Form 720EXT.
Line 9: Percent Of Value
Enter the percentage of value owned by corporations in the affiliated group.
Line 9: Percent Of Voting Power
Enter the percentage of voting power owned by corporations in the affiliated group.
Line 9: Owned By Corporation Number
Enter the corporation number or numbers of the corporations that own this subsidiary.
Tax Payment Instructions
Line 1: Parent Corporation Tax Payments
For the parent corporation, enter total LLET and corporation income tax payments. Include prior year credit, estimated payments, and extension payments.
Lines 2 Through 9: Subsidiary Tax Payments
For each subsidiary, enter total LLET and corporation income tax payments. Include overpayments applied from the prior year, estimated tax payments, and amounts paid with extension Form 720EXT.
Prior Year Credit Column:
Enter any prior year overpayment or credit applied to the current tax year for that corporation.
Estimated Payments Column:
Enter the estimated tax payments made for that corporation.
Extension Payment Column:
Enter the amount paid with Form 720EXT for that corporation.
Stock Ownership Instructions
Lines 2 Through 9: Stock Ownership Information
Complete the stock ownership columns for each subsidiary listed.
Percent Of Value Column:
Enter the percent of the subsidiary’s value owned by a corporation or corporations included in the affiliated group.
Percent Of Voting Power Column:
Enter the percent of the subsidiary’s voting power owned by a corporation or corporations included in the affiliated group.
Owned By Corporation Number Column:
Enter the corporation number or numbers of the corporation or corporations that own the subsidiary.
Ownership Example 1:
If subsidiary corporation number 2 is owned by parent corporation number 1, enter 1 in the “Owned By Corporation No.” column.
Ownership Example 2:
If subsidiary corporation number 2 is owned by corporation numbers 1, 7, and 9, enter 1, 7, 9 in the “Owned By Corporation No.” column.
Important Filing Rules
Line 1: Elective Consolidated Return Rule
Complete Schedule 851-K only when the corporation files an elective consolidated Kentucky return under the applicable Kentucky consolidated return rules.
Line 2: Affiliated Group Rule
The schedule should include the parent corporation and all subsidiaries included in the elective consolidated return.
Line 3: Federal Affiliated Group Rule
For tax years beginning on or after January 1, 2019, an affiliated group may elect to file a Kentucky consolidated return that includes all members of the federal affiliated group.
Line 4: Additional Forms Rule
If the parent corporation has more than eight subsidiaries, attach additional Schedule 851-K forms as needed.
Line 5: Kentucky Account Number Rule
Enter the Kentucky Corporation/LLET account number for each corporation when applicable.
Line 6: Account Number Format Rule
A Kentucky Corporation/LLET account number must have 9 digits. If it has only 6 digits, add leading zeros at the beginning.
Line 7: Payment Matching Rule
Report payments carefully so Kentucky can match prior year credits, estimated payments, and extension payments to the correct corporation.
Line 8: Notice Prevention Rule
Complete the schedule accurately to help avoid unnecessary correspondence or delinquency notices for subsidiaries included in the consolidated return.