An affiliated group elects the use of the consolidated method for filing its tax return by
A)filing Form 1120.
B)filing a consent to the election from each member of the affiliated group in the initial year.
C)filing an affiliations schedule.
D)All of the above are necessary for the election.

Question

Quizplus · Accepted Answer

All of the above options are necessary for the affiliated group to elect the use of the consolidated method for filing its tax return. Filing Form 1120 is necessary for the overall tax return, filing a consent to the election from each member of the affiliated group in the initial year is necessary for each member to agree to the election, and filing an affiliations schedule is necessary to show the relationship between the members of the affiliated group.

An Affiliated Group Elects the Use of the Consolidated Method