Consolidated Returns Checklist

Summary

This checklist provides a step-by-step overview of how to file a U.S. federal consolidated income tax return (consolidated return). I.R.C. Section 1501 allows, but does not mandate, that an affiliated group of corporations file a consolidated income tax return for the group. A consolidated return represents a single tax return filed for all companies in your affiliated group. In broad terms, when a parent and its subsidiaries file a consolidated return, each group member calculates its taxable income or tax liability as if it were a stand-alone taxpayer. The calculation is then combined in one tax return as if all the members were one taxpayer. This checklist provides an overview of the requirements for the filing as well as the forms necessary to comply with the IRS rules.