Instructions For Schedule O (Form 1120) - 2008 Page 3

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$25,000 (one-half of $50,000) on
The controlled group already has
corporation must have entered into
Part II, column (c),
an apportionment plan in place and is
an agreement with the IRS extending
$12,500 (one-half of $25,000) on
not amending this plan or terminating
the statutory period for the limited
Part II, column (d), and
the plan, or
purpose of assessing any deficiency
$4,962,500 (one-half of
The controlled group is not
against that corporation attributable to
$9,925,000) on Part II, column (e).
adopting a plan (all members share
the adoption of the apportionment
equally in the apportionment).
plan. See Temporary Regulations
See the instructions for Parts II
section 1.1561-3T(c)(2).
Line 4. Status of apportionment
and III on pages 3 and 4 of these
instructions.
plan. Check the applicable box to
Part II. Taxable Income
indicate the status of the controlled
Apportionment
group’s apportionment plan. If the
group is adopting an apportionment
Specific Instructions
Enter each member’s share of each
plan or amending the current
taxable income bracket as applicable.
apportionment plan for a prior tax
Members of a controlled group are
Identifying Information
year, there must be at least one year
entitled to one $50,000, one $25,000,
remaining on the statute of limitations
On page 1, enter the name and
and one $9,925,000 taxable income
for each member of the group for
employer identification number (EIN)
bracket amount (in that order) on
assessing any resulting deficiency.
of the component member filing this
columns (c), (d), and (e). See Equal
See the instructions for line 5, below.
Schedule O.
Apportionment Plan and Unequal
If box 4a is checked and no
Apportionment Plan on page 2 of
In Parts II, III, and IV, enter the
apportionment plan is in effect and
these instructions.
name and EIN (if applicable) of the
none is adopted, then all tax benefits
Column (c). Enter taxable income
member filing this Schedule O on line
are shared equally among the
(Form 1120, page 1, line 30, or the
1. Enter the name and EIN (if
members and reported in Parts II, III,
comparable line of the corporation’s
applicable) of the other members of
and IV.
income tax return) or the
the controlled group on lines 2
corporation’s share of the $50,000
Note. The corporation is required to
through 10. Attach additional sheets if
taxable income bracket, whichever is
provide information regarding the
more space is needed. If several
less.
status of the group’s apportionment
component members are also
plan. In connection with the
Column (d). Enter taxable income
members of a consolidated group,
information provided, the corporation
then with respect to those members,
(Form 1120, page 1, line 30, or the
may be required to indicate whether
comparable line of the corporation’s
provide only the name, EIN (and if
all of the component members of the
income tax return) minus the
necessary the tax year) of the
controlled group are adopting,
common parent of the group (and not
corporation’s share of column (c) or
amending, or terminating an
the corporation’s share of the
of the other members of that
apportionment plan. If all the
$25,000 taxable income bracket,
consolidated group). See Temporary
members of a controlled group
whichever is less.
Regulations section 1.1561-3T(a)(2).
complete a written agreement setting
Column (e). Enter taxable income
forth the terms of the adopted or
Part I. Apportionment
(Form 1120, page 1, line 30, or the
amended apportionment plan (or an
comparable line of the corporation’s
Plan Information
agreement to terminate the previously
income tax return) minus the
adopted plan), each member of the
corporation’s share of columns (c)
Line 1. Type of controlled group.
group may rely on this agreement as
and (d) or the corporation’s share of
A member of a controlled group must
a basis for its answers. The
the $9,925,000 taxable income
check the applicable box to indicate
agreement must be signed by an
bracket, whichever is less.
the type of group. For more
authorized person on behalf of each
information, see Types of Controlled
Column (f). Enter taxable income
component member of the controlled
Groups on page 1 of these
(Form 1120, page 1, line 30, or the
group. Do not attach the agreement.
instructions.
comparable line of the corporation’s
Each member must keep as part of
income tax return) minus the
Line 3. Check box 3a to adopt an
its records either the original or a
corporation’s share of columns (c)
apportionment plan. Check box 3b if
copy of such agreement. The
through (e).
the controlled group has a plan in
agreement should contain the group’s
Column (g). Enter the total of
place and all members agree to
apportionment methodology (for
columns (c) through (f) for each
amend the plan. Check box 3c to
example, percentages) for each tax
component member. Each total in
terminate the current plan. A
benefit item.
Part II, column (g) for each member
voluntary termination occurs when
Line 5. Statute of limitations. An
must agree with Form 1120, page 1,
the controlled group agrees to
apportionment plan may not be
line 30, or the comparable line of
terminate the current apportionment
adopted for a particular tax year
such member’s income tax return.
plan. Automatic termination occurs
unless there is at least one year
when a member of the controlled
Note. If a corporation has a loss,
remaining in the statutory period
group leaves the group, a new
enter zero in columns (c) through (g).
(including any extensions) for
member joins the controlled group, or
assessing a deficiency against the
Part III. Income Tax
the controlled group ceases to be in
corporation, the tax liability of which
existence.
Apportionment
would be increased by adopting such
Note. Do not check more than one
plan.
Members of a controlled group are
box on line 3.
If there is less than one year
treated as one group to figure the
Skip line 3 if:
remaining in the statutory period, the
applicability of the additional 5% tax
-3-

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