Filing consolidating corporate papers
The IRM is incorrect, however, in stating that a target corporation's final short-period return is due on the due date (including extensions) of the purchasing corporation's return when the target's Form 1120 otherwise would be due (including extensions) the Form 1120 filed by the purchasing corporation. Assume that s consolidated return, including extensions for the fiscal year in which the acquisition took place. A final short-period return that the IRS treats as not timely filed may result in its treating an election made on the return as not timely. Taxpayers and practitioners should not read the IRM to the exclusion of Regs. 1.1502-76(c)(1) and (2) because the IRM's analysis of that regulation is incomplete. The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.As noted, if the IRS treats a target's final short-period return as filed late, it may treat an election made on the return as untimely. For additional analysis of the current rules, see Friedel, "Best Practices to Avoid Unpleasant Surprises Under Reg. Care must be exercised in identifying the due date for a target corporation's final short-period Form 1120 when the target has been purchased by a U. The IRS can also assess civil penalties for certain international information returns that a corporation must attach to a timely filed U. The target corporation's Form 7004 extension and the target's final short-period return should be filed with statements that put the IRS on notice that the due date of the target's final return is determined under Regs. Report contributions to an HSA or Archer MSA and the FMV of an HSA, Archer MSA, or Medicare Advantage MSA.For more information, see the general and specific instructions for Forms 1099, 1098, 5498, and W-2G.Also use Form 8275 for disclosures relating to preparer penalties for understatements due to unrealistic positions or disregard of rules.Report a sale of assets that make up a trade or business if goodwill or going concern value attaches, or could attach, to such assets and if the buyer's basis is determined only by the amount paid for the assets. The domestic corporation may also have to file Form 8865 to report certain dispositions by a foreign partnership of property it previously contributed to that partnership if it was a partner at the time of the disposition.Entities that cannot file consolidated returns include: (1) tax-exempt corporations; (2) regulated investment companies; and (3) real estate investment trusts.
This Portfolio discusses the advantages and disadvantages of filing consolidated returns. Administrative Rules Regarding Changes of Affiliated Group During Year, Accounting IX.
Report a distribution received from a foreign trust; or, if the corporation was the grantor of, transferor of, or transferor to, a foreign trust that existed during the tax year. Use Form 4562 to claim a deduction for depreciation or amortization, to make the section 179 election to expense certain property, and to provide information on the business/investment use of cars and other listed property.
Report contributions (including rollover contributions) to any IRA, including a SEP, SIMPLE, or Roth IRA, and to report Roth IRA conversions, IRA recharacterizations, and the fair market value (FMV) of the account.
, generally is the 15th day of the third month following the close of the corporation's tax year (Regs. Even after the IRS finalizes those regulations, however, the uncertainty addressed in this item will continue to exist.
However, when a target corporation joins the consolidated group of a purchasing corporation on a date other than the first day of the target corporation's tax year, the due date for the target corporation's short-period final return is determined without regard to the last day of the short period (Regs. The new regulations are proposed to be prospectively effective; they would apply only to transactions occurring in consolidated-return years that begin after final regulations are published.