Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions

FORM CRB - INSTRUCTIONS

MAINE FRANCHISE TAX

COMBINED REPORT FOR UNITARY MEMBERS

The combined reporting form, when applicable, must be ﬁ led with Form

1120B-ME. This report must be accompanied by an afﬁ liation schedule

(federal Form 851 for consolidated ﬁ lers is acceptable) listing name, federal

ID number and corporate activity of all members of the afﬁ liated group.

PURPOSE OF FORM

M-1, line 1 or Schedule M-3, line 11). This information can

be obtained from the supporting statement ﬁ led with federal

NOTE: Only unitary business group members are to be

Form 1120 for consolidated returns. Attach the supporting

included on this form. Afﬁ liated non-unitary members

statement from the federal Form 1120 consolidated return.

are not to be included.

Column 4.

Enter the net income per books of each member

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

listed in column 2 that ﬁ led a separate federal return

business. Maine net income is a ﬁ nancial institution’s net

(member’s net income from federal Form 1120, line 28 or

income or loss per books required to be reported pursuant

equivalent income from other federally ﬁ led return). Entries

to the laws of the United States on Internal Revenue Service

in column 4 relate to members of the unitary business that

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

were not included in a federal consolidated return.

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

Column 5.

Enter any adjustments for eliminations,

36 MRSA § 5206-D(13).

deferrals, and other modiﬁ cations allowed under federal

COMBINED REPORTING

law and regulations not yet taken in column 3. Include

any intercompany transactions between unitary members

Financial institutions with Maine net income that are members

listed on this report if those transactions resulted in gains or

of an afﬁ liated group engaged in a unitary business must ﬁ le

losses. Similar adjustments are allowed for unitary business

a combined report. Financial institutions that are members of

members that are not part of the same consolidated ﬁ ling.

a unitary business but are not required to ﬁ le a federal return

These adjustments include, but are not limited to, (a)

must be excluded from the combined report. This includes

dividends paid out of income subject to apportionment

those ﬁ nancial institutions not required, but electing, to ﬁ le a

under 36 MRSA, chapter 819 by one unitary member to

federal tax return.

another unitary member; (b) deferrals of gains/losses from

“Afﬁ liated group” means a group of two or more ﬁ nancial

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

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

losses from intercompany sales of ﬁ xed assets. Attach a

each member is directly or indirectly owned by a common

worksheet detailing adjustments claimed in column 5.

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

Column 6(A).

Combine columns 3, 4 and 5. This is the

one or more of the member ﬁ nancial institutions. 36 MRSA

adjusted separate income of each member of the unitary

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

business group.

characterized by unity of ownership, functional integration,

centralization of management and economies of scale. 36

Column 6(B).

Enter total end-of-year assets from federal

MRSA § 5206-D(22).

return or pro forma federal return.

All ﬁ nancial institutions required to ﬁ le federal returns that

Columns 7-9.

Enter each ﬁ nancial institution’s share of

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

receipts, payroll and property of the unitary business. See

the combined report of any taxable ﬁ nancial institution with

36 MRSA §§ 5206-E(2), (3) and (4). Carry over totals from

Maine nexus, even if the afﬁ liated ﬁ nancial institution has no

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

nexus with Maine.

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

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

COLUMN INSTRUCTIONS

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

Column 1.

Put a check in this column for those corporations

ﬁ led for the entire group.

listed in column 2 that have nexus with Maine.

LINE INSTRUCTIONS

Column 2.

Enter the name and federal identiﬁ cation number

Line 17.

To the extent not already eliminated, remove all

of each member of the unitary business.

intercompany transactions resulting in gains or losses.

NOTE:

Each unitary member should have an

These eliminations are for columns 6(B)-9 only. Attach a

amount entered in either column 3 or column

worksheet that details any adjustment claimed on this line.

4, but not both.

Line 18.

Enter the total for each of columns 3 through 9.

Column 3.

Enter the separate net income per books of

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

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

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

consolidated return (member’s share of Form 1120, Schedule

Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions - 2011 Page 5

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