Consolidating corporation returns

14 Oct

Attach Form 8886 to the corporation's income tax return for each tax year in which it participated in a reportable transaction.The corporation may have to pay a penalty if it is required to file Form 8886 and does not do so. For more details, see the Instructions for Form 8886.The Commissioner, in his discretion, may grant all groups permission to discontinue filing consolidated returns if any provision of the Code or regulations has been amended and such amendment is of the type which could have a substantial adverse effect on the filing of consolidated returns by substantially all groups, relative to the filing of separate returns.Ordinarily, the permission to discontinue shall apply with respect to the taxable year of each group which includes the effective date of such an amendment.In order to determine whether the amendments have a substantial adverse effect on the consolidated tax liability for 1967, relative to what the aggregate tax liability would be if the members of the group filed separate returns for 1967, the difference between the tax liability of the group computed on a consolidated basis and taking into account the changes in the law effective for 1967 and the aggregate tax liability of the members of the group computed as if each such member filed separate returns for such year (also taking into account such changes) shall be compared with the difference between the tax liability of such group for 1967 computed on a consolidated basis without regard to the changes in the law effective in such year and the aggregate tax liability of the members of the group computed as if separate returns had been filed by such members for such year without regard to the changes in the law effective in such year.

A corporation shall be deemed to have joined in the making of such return for such year if it files a Form 1122 in the manner specified in paragraph (h)(2) of this section.

For more details, including penalties for failing to file Form 8865, see Form 8865 and its separate instructions.

Disclose information for each reportable transaction in which the corporation participated.

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.