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- Each affiliated corporation must consent to file a consolidated tax return by filing Form 1122 and returning it along with Form 1120, the tax form for U.S. corporations. After that point, any new member of the associated group must join in the consolidated tax return.
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Dec 1, 2023 · A consolidated tax return is a corporate income tax return of an affiliated group of corporations that elect to report their combined tax liability on a single return. This tax...
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After which the affiliated group is referred to as a consolidated group. A consolidated group can only exist when the parent corporation satisfies the 80% rule for at least 1 subsidiary. Other members can choose to leave the group without terminating the group’s status.
If two or more members of a combined group file a federal consolidated return, the group's accounting period is the federal taxable period of the federal consolidated group. In all other instances, the accounting period is the federal taxable period of the reporting entity.
Feb 7, 2024 · An affiliated group of US 'includible' corporations, consisting of a parent and subsidiaries directly or indirectly 80% owned, generally may offset the profits of one affiliate against the losses of another affiliate within the group by electing to file a consolidated federal income tax return.
Issues discussed include those arising when a group files a consolidated federal income tax return, but one or more members file in a taxing state using the separate return method. The Portfolio also discusses issues that may arise in filing state combined reports and contrasts how these issues have been handled at the state level with the ...
A group which filed (or was required to file) a consolidated return for the immediately preceding taxable year is required to file a consolidated return for the taxable year unless it has an election to discontinue filing consolidated returns under paragraph (c) of this section.
Feb 6, 2023 · What Is a Consolidated Tax Return? A consolidated tax return is a form of corporate income tax return, for corporations, it is Form 1120, Corporate Income Tax Return. It is filed by an affiliated group of corporations that elect to report their combined tax liability on a single consolidated return.