Instructions For Schedule O (Form 1120) - 2011


Department of the Treasury
Internal Revenue Service
Instructions for Schedule O
(Form 1120)
Consent Plan and Apportionment Schedule for a Controlled Group
Who Must File
agreement as the member’s basis for
Section references are to the Internal
Revenue Code unless otherwise noted.
representing on its Schedule O that
A corporation must file Schedule O
the other component members of the
with its income tax return, amended
group have also consented to
What’s New
return, or claim for refund for each tax
adopting, amending, or terminating
year that the corporation is a
the apportionment plan.
component member of a controlled
Future Developments. The IRS
The agreement must be signed by
group, even if (1) no apportionment
a person authorized to sign on behalf
has created a page on for
plan is in effect, or (2) the amounts
of each component member of the
information about Form 1120
apportioned have not changed from
controlled group and retained. No
(Schedule O) and its instructions at
the previous tax year. See Definitions
member should attach this agreement
and Special Rules, below.
(or a copy of it) to their federal
about any future developments
Consolidated groups. If any of the
income tax returns. Each component
affecting Form 1120 (Schedule O)
component members of a controlled
member must keep, as part of its
(such as legislation enacted after we
group are also members of a
records, either the original or a copy
release it) will be posted on that
consolidated group, then the common
of the signed agreement. The
parent of that consolidated group
agreement must contain the group’s
must file, as part of its consolidated
apportionment methodology (for
General Instructions
income tax return, one Schedule O
example, percentages) for each tax
on behalf of the members of that
benefit item that is apportioned.
consolidated group. No subsidiary of
Purpose of Schedule
that consolidated group should file
Definitions and Special
A corporation that is a component
Schedule O on its own behalf. The
member (defined below) of a
Schedule O should contain the
controlled group must use Schedule
required consolidated information for
O to report the apportionment of
all members of the consolidated
Types of Controlled Groups
taxable income, income tax, and
group. See Identifying Information.
Parent-subsidiary group. A
certain tax benefits between all
Exception. If all of the members
parent-subsidiary group is one or
component members of the group.
of a parent-subsidiary controlled
more chains of corporations
These members will be subject to
group that are required to file a U.S.
connected through stock ownership
limitations on the use of certain tax
tax return join in filing the same
with a common parent corporation if:
benefits for their applicable tax year.
consolidated tax return, then the
Stock possessing at least 80% of
See Apportionment of Tax Benefit
parent of that group does not have to
the total combined voting power of all
file Schedule O on behalf of the
classes of stock entitled to vote or at
least 80% of the total value of shares
Also use Schedule O to indicate
Completing and Filing
of all classes of stock of each of the
that the member filing this return
corporations, except the common
Schedule O
consents to and represents that all
parent corporation, is directly or
the other component members of the
In completing Schedule O, the
indirectly owned by one or more of
controlled group:
following apply.
the other corporations; and
Are adopting an apportionment
The filing of Schedule O by a
The common parent corporation
plan, effective for the current tax year;
component member provides the
directly or indirectly owns stock
required information as to the status
Are amending the existing
possessing at least 80% of the total
of the group’s apportionment plan.
apportionment plan;
combined voting power of all classes
Such information must indicate, when
Are terminating the existing
of stock entitled to vote or at least
applicable, whether all the component
apportionment plan and not adopting
80% of the total value of shares of all
members of the controlled group are
a new plan;
classes of stock of at least one of the
adopting, amending, or terminating
other corporations, excluding, in
Are terminating the existing
an apportionment plan.
computing such voting power or
apportionment plan and adopting a
If all such members complete the
value, stock owned directly by such
new plan;
required written agreement setting
other corporations.
Have no apportionment plan in
forth the terms of the adopted or
effect and are not adopting an
amended apportionment plan (or an
For purposes of determining
apportionment plan; or
agreement to terminate a previously
whether a corporation is a member of
Already have an apportionment
adopted plan), then each member of
a parent-subsidiary controlled group
plan in effect.
that group may rely on this
of corporations within the meaning of
Dec 22, 2011
Cat. No. 48211V


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