SCHEDULE RPC - Related Party Costs Disclosure Statement - KRS 141.205 and 103 KAR 16:230

Sep 19, 2026

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Schedule RPC, Related Party Costs Disclosure Statement, must be completed when an entity paid, accrued, or incurred intangible expenses, intangible interest expense, or management fees to a related member. To claim exceptions from Kentucky add-backs and corresponding deductions, taxpayers complete and attach this schedule to the appropriate Kentucky return. The form details required add-back totals by category, provides exception amounts, and includes detailed exception support information with related member data.

LanguageEnglish

CategoryForms

FormatPDF

Pages5

Reading Time2 min

AccessFree to download

PART I – REQUIRED ADD BACK

Section A — Intangible Expenses

Section B — Intangible Interest Expenses

Section C — Management Fees

Section D — Total Required Add Back

PART II – EXCEPTIONS TO ADD BACK

Section A — Exceptions to Expenses

Section B — Total Related Party Cost Add Back After Exceptions

PART III – DETAIL OF EXCEPTIONS TO ADD BACK

Section A — Consolidated Kentucky corporation return exception

Section B — Other-state tax exception

SCHEDULE RPC 41A720RPC (6-14) Commonwealth of Kentucky DEPARTMENT OF REVENUE *1400010332* ➤ See instructions. ➤ Attach to Form 720, 720S, 765 or 765-GP. TaxableYear Ending / Mo. Yr. RELATED PARTY COSTS DISCLOSURE STATEMENT KRS 141.205 and 103 KAR 16:230 | Name of Entity | | Federal Identification Number | Kentucky Corporation/LLET Account Number (if applicable) | | | | | --- | --- | --- | --- | --- | --- | --- | | Schedule RPC, Related Party Costs Disclosure Statement, shall be completed by an entity that paid, accrued or incurred intangible expenses, intangible interest expense or management fees to a related member.
To be entitled to an exception from the add back of expenses and a corresponding deduction from net income, the taxpayer must complete and attach this schedule to the applicable Kentucky tax return (Form 720, 720S, 765 or 765-GP) .
Failure to complete Schedule RPC and attach all supporting documentation will result in disallowance of the exception(s) . | | | | | | | | PART I – REQUIRED ADD BACK
All intangible expenses, intangible interest expenses and management fees that are paid, accrued or incurred to a related member must be added back to income unless one or more of the statutory exceptions are met. | | | | | | | | Section A — Intangible Expenses | | | | | | | | 1. | Total intangible expenses paid to a related member: Do not include any interest
expense or costs related to intangible interest expense ..................................................... | | | 1 | | 00 | | | | | | | | | | Section B — Intangible Interest Expenses | | | | | | | | 1. | Total intangible interest expenses paid to a related member ............................................ | | | 1 | | 00 | | | | | | | | | | Section C — Management Fees | | | | | | | | 1. | Total management fees paid to a related member .............................................................. | | | 1 | | 00 | | | | | | | | | | Section D —Total Required Add Back | | | | | | | | 1. | Add Section A, line 1, Section B, line 1 and Section C, line 1. Enter here | | | 1 | | 00 | | PART II – EXCEPTIONS TO ADD BACK | | | | | | --- | --- | --- | --- | --- | | Section A — Exceptions to Expenses | | | | | | 1. | Enter amount from Part III, Section A, line 6 | 1 | | 00 | | 2. | Enter amount from Part III, Section B, line 5 | 2 | | 00 | | 3. | Enter amount from Part III, Section C, line 5 | 3 | | 00 | | 4. | Enter amount from Part III, Section D, line 1 | 4 | | 00 | | 5. | Enter amount from Part III, Section E, line 1 | 5 | | 00 | | 6. | Total Exceptions: Add lines 1 through 5 and enter here ...................................................... | 6 | | 00 | | | | | | | | Section B —Total Related Party Cost Add Back After Exceptions | | | | | | 1. | Total: Part I, Section D, line 1 less Part II, Section A, line 6. Enter here and on Form 720, Part III, line 6; Form 720S, Part III, line 4; or Form 765 or 765-GP, Part I, line 4 | 1 | | 00 | 41A720RPC (6-14) Commonwealth of Kentucky DEPARTMENT OF REVENUE *1400010337* Page 2 | PART III – DETAIL OF EXCEPTIONS TO ADD BACK | | | | | | | --- | --- | --- | --- | --- | --- | | Section A — Exception for intangible expenses, intangible interest expenses and management fees paid to related members that are included in the same consolidated Kentucky corporation income tax return for this taxable year. | | | | | | | Name of Related Member | | Federal Identification
Number | Kentucky Corp./LLET Account Number | Amount
Deducted | | | 1. | | | | | 00 | | 2. | | | | | 00 | | 3. | | | | | 00 | | 4. | | | | | 00 | | 5. | | | | | 00 | | 6. | Total of lines 1 through 5. Enter here and on PART II, Section A, line 1 | | | | 00 | | Section B — Exception for intangible expenses, intangible interest expenses and management fees paid to related me

FAQs

What entities must complete Schedule RPC?

An entity that paid, accrued, or incurred intangible expenses, intangible interest expense, or management fees to a related member must complete Schedule RPC.

How do taxpayers claim exceptions to the required add-back?

Taxpayers must complete and attach Schedule RPC to the applicable Kentucky return and provide the exception amounts and required supporting information when applicable.

What information is required for exceptions in Part III?

Part III requires details about related members and the applicable exception basis, including identifying information and amounts deducted, along with answers to related questions for the other-state tax exception.

Sep 19, 2026

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