Which of the following entities is eligible to join in a Federal consolidated return?
A) A sole proprietor with annual sales of more than $50 million.
B) A U.S. corporation's § 401k) plan.
C) A partnership organized in Germany.
D) A corporation that operates in seven different U.S. states.

Question

Quizplus · Accepted Answer

A corporation operating in multiple U.S. states is eligible to join in a Federal consolidated return, provided it meets other IRS criteria for consolidation. Sole proprietors, partnerships, and specific tax-exempt entities like § 401(k) plans are not eligible for this type of tax filing.

Which of the Following Entities Is Eligible to Join in a Federal