question archive For which of the following? tax-related matters can an affiliated? group's parent corporation act as the? group's agent? a
For which of the following? tax-related matters can an affiliated? group's parent corporation act as the? group's agent? a
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For which of the following? tax-related matters can an affiliated? group's parent corporation act as the? group's agent?
a. Consent by a subsidiary corporation to the filing of a consolidated tax return.
b. Changing a subsidiary? corporation's accounting method.
c. Corresponding with the IRS during its audit regarding a subsidiary? corporation's transaction that affects the? group's consolidated taxable income.
d. Requesting an extension of time to file a consolidated tax return.
A. Only a and c are? tax-related matters that allow an affiliated? group's parent corporation to act as the? group's agent because the parent files the initial consent for allowing subsidiaries to file consolidated returns and they also work directly with the IRS in all correspondence following that initial consenting return.
B. None of the? tax-related matters allow an affiliated? group's parent corporation to act as the? group's agent because each entity is considered a standalone entity for? tax-related matters such as those listed.
C. Only? b, c, and d are? tax-related matters which the parent corporation can act as the? group's agent. Each subsidiary corporation must first consent to participate in a consolidated? return; thus giving the parent the right to act on their behalf for the other three actions.
D. All of the? tax-related matters allow an affiliated? group's parent corporation to act as the? group's agent since once a subsidiary becomes? 80% or more owned by a parent? corporation, all? tax-related matters must be answered through the parent corporation.
