Identify which of the following statements is true.
A)If 100% of the stock of two corporations is owned by the same individual, the two corporations are eligible to file a consolidated return.
B)The check-the-box regulations permit partnership and LLCs to elect C corporation tax treatment.
C)A group of corporations that meets the parent-subsidiary controlled group requirements is always eligible to file a consolidated return.
D)All of the above are false.

Question

Quizplus · Accepted Answer

A is false because even if the same individual owns 100% of the stocks of two corporations, they must meet certain criteria to be eligible to file a consolidated return. 
C is false because even if a group of corporations meets the parent-subsidiary controlled group requirements, they still need to meet other criteria to be eligible to file a consolidated return. 
B is true because the check-the-box regulations provide flexibility for a partnership or LLC to elect to be taxed as a C corporation, which can have tax benefits in certain situations.

Identify Which of the Following Statements Is True