A group's election to file consolidated Federal corporate income tax returns must be made by the extended due date of the first return on which the consolidation is applied.

Question

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This statement is correct according to the rules set forth by the Internal Revenue Service (IRS). The election to file consolidated returns must be made by the extended due date of the first return on which the group wants to apply the consolidation. Failure to make the election by that date will result in the group being unable to file consolidated returns for that year.

A Group's Election to File Consolidated Federal Corporate Income Tax