How do the members of a consolidated group split among themselves the benefits of the lower tax brackets on the first $75,000 of taxable income?
A)According to their relative net asset holdings.
B)According to an internal tax-sharing agreement.
C)According to an internal tax-sharing agreement,which may be modified by the IRS upon audit.
D)According to a tax-sharing agreement that must be approved by the IRS by the end of the first quarter of the tax year.

Question

Quizplus · Accepted Answer

The members of a consolidated group must split the benefits of the lower tax brackets on the first $75,000 of taxable income according to an internal tax-sharing agreement. This agreement determines how the group's tax liability will be divided among its members. The IRS does not approve or modify this agreement, but it may audit the group's tax returns to ensure that the agreement is being followed.

How Do the Members of a Consolidated Group Split Among