Identify which of the following statements is true.
A)Corporations that join in a consolidated return must adopt the same tax year as the parent corporation.
B)Permission to discontinue the filing of consolidated tax returns is sometimes granted by the IRS.
C)Additional administrative costs may be incurred when filing a consolidated tax return.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true. A) Corporations in a consolidated return must use the same tax year as the parent to simplify reporting and ensure consistency. B) The IRS may grant permission to discontinue consolidated filing under certain conditions, recognizing that business structures and needs change. C) Filing a consolidated tax return can lead to additional administrative costs due to the complexity of combining multiple entities' financial activities into a single return.

Identify Which of the Following Statements Is True