Instructions For Maine Franchise Tax Form 1120b-Me (Page 6 of 6) in pdf

FORM CRB - INSTRUCTIONS

MAINE FRANCHISE TAX

COMBINED REPORT FOR UNITARY MEMBERS

The combined reporting form, when applicable, must be filed with Form 1120B-ME. This report

must be accompanied by an affiliation schedule (federal Form 851 for consolidated filers is acceptable)

listing name, federal ID number and corporate activity of all members of the affiliated group.

PURPOSE OF FORM

Column 4. Enter the net income per books of each member

NOTE: Only unitary business group members are to be

listed in column 2 that filed a separate federal return (member’s

included on this form. Affiliated non-unitary members are

net income from federal Form 1120, line 28 or equivalent

not to be included.

income from other federally filed return). Entries in column 4

Form CRB is used to calculate Maine net income of a unitary

relate to members of the unitary business that were not

business. Maine net income is a financial institution’s net

included in a federal consolidated return.

income or loss per books required to be reported pursuant to

Column 5. Enter any adjustments for eliminations, deferrals,

the laws of the United States on Internal Revenue Service

and other modifications allowed under federal law and

Form 1120, 1120S, 1065, or any other Internal Revenue

regulations not yet taken in column 3. Include any

Service Form used to report net income or loss per books.

intercompany transactions between unitary members listed

36 M.R.S.A. § 5206-D(13).

on this report if those transactions resulted in gains or losses.

Similar adjustments are allowed for unitary business members

COMBINED REPORTING

that are not part of the same consolidated filing. These

Financial institutions with Maine net income that are members

adjustments include, but are not limited to, (a) dividends paid

of an affiliated group engaged in a unitary business must file

out of income subject to apportionment under 36 M.R.S.A.,

a combined report. Financial institutions that are members of

chapter 819 by one unitary member to another unitary member;

a unitary business but are not required to file a federal return

(b) deferrals of gains/losses from intercompany sales of

must be excluded from the combined report. This includes

inventory; and (c) deferrals of gains/losses from intercompany

those financial institutions not required, but electing to file, a

sales of fixed assets. Attach a worksheet detailing

federal tax return.

adjustments claimed in column 5.

“Affiliated group” means a group of two or more financial

Column 6(A). Combine columns 3, 4, and 5. This is the

institutions of which more than 50% of the voting stock of

adjusted separate income of each member of the unitary

each member is directly or indirectly owned by a common

business group.

owner or owners, either corporate or non-corporate, or by one

Column 6(B). Enter total end-of-year assets from federal

or more of the member financial institutions. 36 M.R.S.A. §

return or pro forma federal return.

5206-D(1). A “unitary business” is a business activity that is

characterized by unity of ownership, functional integration,

Columns 7-9. Enter each financial institution’s share of

centralization of management, and economies of scale. 36

receipts, payroll and property of the unitary business. See 36

M.R.S.A. § 5206-D(22).

M.R.S.A. §§ 5206-E(2), (3) and (4). Carry over totals from

line 18 to Schedule A. The amounts listed on the total line of

All financial institutions required to file federal returns that are

columns 7, 8 and 9 (line 18) of the Combined Report must

part of a unitary business are required to be included in the

agree with those entered on lines 8, 9 and 10, columns (A)

combined report of any taxable financial institution with Maine

and (B) of Schedule A, Form 1120B-ME if a single return is

nexus, even if the affiliated financial institution has no nexus

filed for the entire group.

with Maine.

LINE INSTRUCTIONS

COLUMN INSTRUCTIONS

Line 17. To the extent not already eliminated, remove all

Column 1. Put a check in this column for those corporations

intercompany transactions. These eliminations are for

listed in column 2 that have nexus with Maine.

columns 6(B)-9 only. Attach a worksheet that details any

Column 2. Enter the name and federal identification number

adjustment claimed on this line.

of each member of the unitary business.

Line 18. Enter the total for each of columns 3 through 9.

NOTE:

Each financial institution should have an

Enter column 6(A), line 18 on Form 1120B-ME, line 1a. Enter

amount entered in either column 3 or column 4, but

column 6(B), line 18 on Form 1120B-ME, line 2a.

not both.

Column 3. Enter the separate net income per books of each

member listed in column 2 that was part of a federal consolidated

return (member’s share of Form 1120, Schedule M-1, line 1).

This information can be obtained from the supporting statement

filed with federal Form 1120 for consolidated returns. Attach

the supporting statement from the federal Form 1120

consolidated return.

REV. 12/05

Instructions For Maine Franchise Tax Form 1120b-Me Page 6

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