Instructions For Form 1120-Pc - 2008 (Page 5 of 20) in pdf

3. Certain transactions for which the

Regulations section 1.1503-2(c)(5)), the

street address line “C/O” followed by the

corporation has contractual protection

corporation (or consolidated group) may

third party’s name and street address or

against disallowance of the tax benefits.

need to attach an elective relief

P.O. box.

4. Certain transactions resulting in a

agreement and/or an annual certification

Item A. Identifying

loss of at least $10 million in any single

as provided in Regulations section

year or $20 million in any combination of

1.1503-2(g)(2).

Information

years.

Election to reduce basis under section

5. Any transaction identified by the

362(e)(2)(C). The transferor and

Consolidated Return

IRS in published guidance as a

transferee in certain section 351

If an affiliated group of corporations

“transaction of interest” (a transaction that

transactions can make a joint election

includes one or more domestic life

the IRS believes has a potential for tax

under section 362(e)(2)(C) to limit the

insurance companies taxed under section

avoidance or evasion, but has not yet

transferor’s basis in the stock received

801, the common parent may elect to

been identified as a listed transaction).

instead of the transferee’s basis in the

treat those companies as includible

transferred property. The transferor and

For more information, see Regulations

corporations. The life insurance

transferee may make the election by

section 1.6011-4 and the Instructions for

companies must have been members of

attaching the statement as provided in

Form 8886.

the group for the 5 tax years immediately

Notice 2005-70, 2005-41 I.R.B. 694, to

preceding the tax year for which the

Penalties. The corporation may have

their tax returns filed by the due date

election is made. See section 1504(c)(2)

to pay a penalty if it is required to disclose

(including extensions) for the tax year in

and Regulations section

a reportable transaction under section

which the transaction occurred. If the

1.1502-47(d)(12).

6011 and fails to properly complete and

transferor is a controlled foreign

file Form 8886. Penalties may also apply

Corporations filing a consolidated

corporation, its controlling U.S.

under section 6707A if the corporation

return must attach Form 851, Affiliations

shareholder(s) can make the election.

fails to file Form 8886 with its corporate

Schedule, and other supporting

The common parent of a consolidated

return, fails to provide a copy of Form

statements to the return. Also, for the first

group can make the election for the

8886 to the Office of Tax Shelter Analysis

year a subsidiary corporation is being

group.

(OTSA), or files a form that fails to include

included in a consolidated return, attach

Once made, the election is irrevocable.

all the information required (or includes

Form 1122, Authorization and Consent of

See section 362(e)(2)(C) and Notice

incorrect information). Other penalties,

Subsidiary Corporation To Be Included in

2005-70.

such as an accuracy-related penalty

a Consolidated Income Tax Return, to the

Other forms and statements. See Pub.

under section 6662A, may also apply. For

parent’s consolidated return. Attach a

542, Corporations, for a list of other forms

details on these and other penalties, see

separate Form 1122 for each subsidiary

and statements a corporation may need

the Instructions for Form 8886.

being included in the consolidated return.

to file in addition to the forms and

Reportable transactions by material

File supporting statements for each

statements discussed throughout these

advisors. Material advisors to any

corporation included in the consolidated

instructions.

reportable transaction must disclose

return. Do not use Form 1120-PC as a

certain information about the reportable

supporting statement. On the supporting

transaction by filing Form 8918, Material

statement, use columns to show the

Specific Instructions

Advisor Disclosure Statement, with the

following, both before and after

IRS.

adjustments.

Period Covered

1. Items of gross income and

Transfers to a corporation controlled

deductions.

by the transferor. Every significant

Generally, file the 2008 return for

2. A computation of taxable income.

transferor (as defined in Regulations

calendar year 2008. However, if an

3. Balance sheets as of the beginning

section 1.351-3(d)) that receives stock of

insurance company joins in the filing of a

and end of the tax year.

a corporation in exchange for property in

consolidated return, it may adopt the tax

4. A reconciliation of income per

a nonrecognition event must attach the

year of the common parent corporation

books with income per return.

statement required by Regulations

even if that year is not a calendar year.

5. A reconciliation of retained

section 1.351-3(a) to its return for the tax

For a fiscal or short tax year return, fill in

earnings.

year of the exchange. The transferee

the tax year space at the top of the form.

corporation must include the statement

Enter on Form 1120-PC the totals for

required by Regulations section

Name and Address

each item of income, gain, loss, expense,

1.351-3(b) for the tax year of the

or deduction, net of eliminating entries for

Enter the corporation’s true name (as set

exchange, unless all the required

intercompany transactions between

forth in the charter or other legal

information is included in any

corporations within the consolidated

document creating it), address, and EIN

statement(s) provided by a significant

group. Attach consolidated balance

on the appropriate lines. Enter the

transferor that is attached to the same

sheets and a reconciliation of

address of the corporation’s principal

return for the same section 351

consolidated retained earnings.

office or place of business. Include the

exchange.

suite, room, or other unit number after the

For more information on consolidated

Distributions under section 355. Every

street address. If the post office does not

returns, see the regulations under section

corporation that makes a distribution of

deliver mail to the street address and the

1502.

stock or securities of a controlled

corporation has a P.O. box, show the box

Note. If a nonlife insurance company is a

corporation, as described in section 355

number instead.

member of an affiliated group, file Form

(or so much of section 356 as it relates to

Note. Do not use the address of the

1120-PC as an attachment to the

section 355), must attach the statement

registered agent for the state in which the

consolidated return in lieu of filing

required by Regulations section 1.355-5

corporation is incorporated. For example,

supporting statements. Across the top of

to its return for the year of the distribution.

if a business is incorporated in Delaware

page 1 of Form 1120-PC, write

If the distributing corporation is a

or Nevada and the corporation’s principal

“Supporting Statement to Consolidated

controlled foreign corporation, each U.S.

office is located in Little Rock, AR, the

Return.”

shareholder (within the meaning of

corporation should enter the Little Rock

section 951(b)), must include the

Life-Nonlife Consolidated Return. If

address.

statement on or with its return.

the corporation is the common parent of a

Dual consolidated losses. If a

If the corporation receives its mail in

life-nonlife consolidated group, check box

domestic corporation incurs a dual

care of a third party (such as an

2 of Item A. See Temporary Regulations

consolidated loss (as defined in

accountant or an attorney), enter on the

section 1.1502-47T(s) for more details.

-5-

Instructions for Form 1120-PC

Instructions For Form 1120-Pc - 2008 Page 5

Related Articles

Related forms

Related Categories