Form 1120b-Me - Maine Franchise Tax Instructions

COMBINED REPORT (FORM CRB) INSTRUCTIONS

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

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.

eral Form 1120 for consolidated returns. Attach the supporting state-

PURPOSE OF FORM:

ment from the consolidated return. Each financial institution on

this report should have an amount entered in either column 2 or

NOTE: Only unitary business group members are to be included

column 3, but not both.

on this form. Affiliated non-unitary members are no longer in-

cluded.

Column 3. Enter the net income per books of each member listed in

column 1 that filed a separate federal return (Form 1120, line 28 or

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

equivalent income from other federally filed return). Entries in col-

ness. Maine net income is a financial institution’s net income or

umn 3 relate to members of the unitary business that were not in-

loss per books required to be reported pursuant to the laws of the

cluded in a federal consolidated return.

United States on Internal Revenue Service Form 1120, 1120S, 1065,

or any other Internal Revenue Service Form used to report net in-

Each financial institution on this report should have an amount

come or loss per books. 36 M.R.S.A. § 5206-D(13).

entered in either column 2 or column 3, but not both.

COMBINED REPORTING:

Column 4. Enter any adjustments for eliminations, deferrals, and

other modifications allowed under federal law and regulations not

Financial institutions with Maine net income that are members of an

yet taken in column 2. Include any intercompany transactions be-

affiliated group engaged in a unitary business must file a combined

tween unitary members listed on this report if those transactions

report. Financial institutions that are members of a unitary business

resulted in gains or losses. Similar adjustments are allowed for

but are not required to file a federal return must be excluded from the

unitary business members that are not part of the same consoli-

combined report. This includes those financial institutions not re-

dated filing. These adjustments include, but are not limited to, those

quired, but electing to file, a federal tax return.

for (a) dividends paid out of income subject to apportionment under

36 M.R.S.A., chapter 819 by one unitary member to another unitary

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

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

tutions of which more than 50% of the voting stock of each member

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

is directly or indirectly owned by a common owner or owners, either

of fixed assets. Attach a worksheet that details adjustments claimed

corporate or non-corporate, or by one or more of the member finan-

in column 4.

cial institutions. 36 M.R.S.A. § 5206-D(1). A “unitary business” is a

business activity that is characterized by unity of ownership, func-

Column 5(A). Combine columns 2, 3, and 4. This is the adjusted

tional integration, centralization of management, and economies of

separate income of each member of the unitary business group.

scale. 36 M.R.S.A. § 5206-D(22).

Column 5(B). Enter total end-of-year assets from federal return or

All financial institutions required to file federal returns that are

pro forma federal return.

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

bined report of any taxable financial institution with Maine nexus,

Columns 6-8. Enter each financial institution’s share of receipts,

even if the affiliated financial institution has no nexus with Maine.

payroll, and property of the unitary business.

36 M.R.S.A. §§

5206-E(2), (3), and (4). The totals should be carried over from Line 18

COLUMN INSTRUCTIONS

to Schedule A. The amounts listed on the total line of Columns 6, 7,

and 8 (line 18) of the Combined Report must agree with those en-

Nexus with Maine Column. Place a check mark in this column for

tered on lines 8, 9, and 10, Columns (A) and (B) of Schedule A, Form

those corporations listed in column 1 that have nexus with Maine

1120B-ME if a single return is filed for the entire group.

Column 1. Enter the name and federal identification number of each

LINE INSTRUCTIONS

member of the unitary business.

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

Column 2. Enter the separate net income per books of each mem-

pany transactions. These eliminations are for columns 5(B)-8 only.

ber listed in column 1 that was part of a federal consolidated return

Attach a worksheet that details any adjustment claimed on this line.

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

tion can be obtained from the supporting statement filed with fed-

Line 18. Enter the total for each of Columns 2 through 8. Enter

column 5(A), line 18 on Form 1120B-ME, line 1a. Enter column 5(B),

line 18 on Form 1120B-ME, line 2a.

Form 1120b-Me - Maine Franchise Tax Instructions - 2002 Page 6

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