Instructions For Schedule O (Form 1120) - 2012 (Page 7 of 9) in pdf

test, or for purposes of applying both

Check box 3d, if the remaining

Specific Instructions

the 80% and 50% test.

component members choose to adopt

a new apportionment plan.

Line 2. Member status. If a

Identifying Information

corporation was not a component

With regard to box 3c, the

member of the group for each day of

remaining component members will

Component member filing Sched-

its tax year, check box 2b and provide

not be able to adopt a new

ule O. On page 1, enter the name

the required information. If the taxable

apportionment plan if, for example,

and employer identification number

year of this corporation does not

such component members have left

(EIN) of the component member filing

include a December 31 date, a

the group.

this Schedule O.

special apportionment rule applies.

In Part II, column (a), line 1, enter

Example. For years prior to 2012,

See Special allocation rules for a

the component member's name and

Corporation X has been a member of

short tax year, earlier.

EIN. In column (b), enter the

controlled group XYZ and has a

Line 3. Consent and represent. If

member's tax year ending date

calendar tax year. Corporations X, Y,

all the component members consent

(Yr-Mo). In Parts III and IV, column

and Z are component members of a

to adopt an apportionment plan,

(a), line 1, enter only the name of the

controlled group and each has a

check box 3a. By checking box 3a,

component member.

calendar tax year. On August 31,

this corporation is consenting to the

2012, X is sold to an unrelated party.

Other component members of the

adoption of an apportionment plan

Even though X will not be a member

controlled group. For Parts II, III,

and is also representing that the other

of the group on its December 31,

and IV, column (a), lines 2 through 10,

component members of the group are

2012, testing date, it is treated as an

and Part II, column (b), enter the

also consenting to the adoption of that

additional member of the group on

corresponding information for each of

plan. See Completing and Filing

that date. Consequently, for 2012 the

the other component members of the

Schedule O, earlier.

XYZ controlled group must apportion

controlled group, in the same manner

the tax-benefit items according to the

as the member filing this Schedule O.

If all the component members

terms of its apportionment plan.

If more space is needed, attach

consent to amend an apportionment

Therefore, X, Y, and Z would each

additional sheets.

plan, check box 3b. By checking

check box 3c on its 2012 Schedule O.

box 3b this corporation is consenting

Consolidated groups. If several

to the amendment of an

If box 3c or 3d is checked,

component members are also

apportionment plan and is also

complete Parts II, III, and IV under

members of a single consolidated

representing that the other component

either of the following circumstances.

group, then with respect to those

members of the group are consenting

If a corporation which is joining or

members, in Parts II, III, and IV,

to the amendment of that plan.

leaving the group still qualifies as a

column (a), and Part II, column (b),

However, to amend a plan both of the

component member for its tax year,

enter only the information of the

following conditions must be satisfied.

complete Parts II, III, and IV according

common parent of the consolidated

The controlled group already has

to the terms of any applicable

group.

an apportionment plan in effect, and

apportionment plan.

If any component members

There has been no change in the

If a corporation which is joining or

of the controlled group are

component-member composition of

leaving the group will not qualify as a

TIP

also members of a

the group from the previous taxable

component member for its tax year

consolidated group, the parent of

year.

then, following the corporation's name

such consolidated group should file

in column (a), enter the notation “(E)”

If the component members of a

only one Schedule O on behalf of all

for excluded member. In Part II,

group are either adopting a new

such members of the controlled

column (b), enter the ending date of

apportionment plan or amending an

group. Such form must contain the

the tax year (Yr-Mo) and enter “0” in

existing apportionment plan that

required information for each such

the remaining columns, as applicable.

involves prior tax years of those

member. See Regulations section

The remaining component members

component members, at least one

1.1561-3(a)(2).

of the group will apportion the various

year must remain on each of the

tax items according to terms of any

statutes of limitations for assessing a

Part I. Apportionment Plan

newly adopted apportionment plan, in

tax deficiency against all of the

Information

the event a new apportionment plan is

component members of the group for

adopted by those remaining

such prior tax years. See the

Line 1. Type of controlled group. A

members.

instructions, below.

component member of a controlled

group must check the applicable box

Note. Do not check more than one

If the apportionment plan for the

to indicate the type of group. For more

box on line 3. If a corporation does not

component members of a controlled

information, see Types of Controlled

adopt an apportionment plan, amend

group is terminated:

Groups, earlier.

a previous apportionment plan, or

Check box 3c, if the remaining

terminate an existing apportionment

For a brother-sister controlled

component members choose not to

plan, skip line 3 and go to line 5.

group, check box 1b whether that

adopt (or are not able to adopt) a new

group is a brother-sister group for

apportionment plan; or

purposes of applying only the 50%

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Instructions For Schedule O (Form 1120) - 2012 Page 7

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