Schedule R - California Apportionment And Allocation Of Income

Part I Taxpayers Electing to File, or No Longer Included in the Single Group Return. See instructions below Section A and

Section B before completing the tables.** (continued)

Section B – List of Taxpayers No Longer Included in the Single Group Tax Return After the Last Filing. Attach additional sheets using the same format, if

necessary.

Taxpayer’s name

California

FEIN

Effective date

(Enter the legal name that is filed with the

corporation number

(mm/dd/yyyy)

California SOS).

(if one is assigned)

Use Part I, Section B, to list each taxpayer that is no longer included in the single group tax return from prior year Part I, Section A. Include each taxpayer’s legal name,

California corporation number or federal employer identification number (FEIN), and effective date in the space provided. The effective date is the date that the entity is

removed from the single group tax return.

Part II Other Affiliated Corporations

List each affiliated corporation not listed in Part I, Section A. A corporation is an affiliated corporation for this purpose if it is a member of the same commonly

controlled group (see R&TC Section 25105(b) and FTB Pub. 1061, Guidelines for Corporations Filing a Combined Report, for more information). All affiliated

corporations should be listed whether or not they are California taxpayers or are unitary with the key corporation. Include the California corporation number for each

taxpayer. If the California corporation number is not available, then include the FEIN.

List of Affiliates Not Included in Part I, Section A. Attach additional sheets using the same format, if necessary.

Affiliate corporation’s name

California

Is this corporation

Does this corporation

Was this corporation

corporation number

unitary with the

file a California tax

acquired or disposed of

(if applicable) or FEIN

electing group?

return on a different

during the year?

fiscal year than the

electing group?

Yes

Acq

Dis

Date

(mm/dd/yyyy)



Schedule R-7 – Terms and Conditions

This election is an integral part of the return of all taxpayers participating in the election, and must be filed annually with Schedule R. Signing the California tax

return is an acknowledgement that the key corporation and its electing affiliates agree to comply with the following terms and conditions:

Each of the taxpayers listed in Schedule R-7, Part I,

California corporate number as designated in

be independently assessed or billed for its own tax

Section A, hereby elect to file a single unitary

Part I, Section A.

liability. If that becomes necessary, each member

taxpayers’ group return. The unitary taxpayers’

will generally be credited with taxes previously paid

The key corporation must be taxable in California

group return constitutes the return for each member

in accordance with the member’s self-assessed tax

and, where applicable, be the parent corporation. If

of the electing group and satisfies the requirement

liability (see FTB Legal Ruling 95-2).

the parent corporation is not a California taxpayer,

of each electing member to file its own return.

the key corporation should be the taxpayer

It is the responsibility of the members of the

Each corporation that elects to participate in a

with the largest property factor numerator in

group to assure that amounts paid by one member

group return agrees to be bound by the terms and

California. For the election to be valid, the key

on behalf of another are properly accounted for

conditions specified in this schedule and instructions

corporation’s powers, rights, and privileges must

between the members. For electing members

under General Information P, Group Return Election.

not be suspended or forfeited. The key corporation

subject to the franchise tax, the liability for each

The filing of its group return indicates acceptance

agrees to act as surety and agent (including filing

electing corporation cannot be less than the

of all terms and conditions. To be eligible, each

a single power of attorney for the group, when

minimum tax. See General Information P.

corporation must meet all of the following:

applicable) for each member of the group. In

The election is binding on all members for all

addition, all electing members agree that subsequent

1) Be a taxpayer required to file a return in

matters for the taxable year of the election. If some

adjustments to the liability of the members of the

California.

or all of the corporations included in the election

group may be assessed, billed, or paid to the key

2) Be a member of a combined report for its entire

to file a unitary taxpayers’ group return are later

corporation on behalf of its members, either in

taxable year.

determined not to be members of the unitary

the name of the key corporation or the name of

3) Have the same taxable year as the key

group of the key corporation, the key corporation

the members. Adjustments to the liability of the

corporation or have a taxable year that is wholly

and electing members agree that any subsequent

members of the group will ordinarily be reflected in

included within the taxable year of the key

adjustment for any and all members included in the

a single notice. However, supplemental schedules

corporation.

original group return may still be assessed, billed,

reflecting the adjusted liability of each member will

4) Have the same statutory filing date as the key

or paid by the key corporation.

be provided upon request.

corporation for the taxable year.

The election remains in effect for the payment

A California waiver of a statute of limitation

The key corporation must file the unitary

of estimated tax and tax paid with an extension

(SOL) by the key corporation will waive the SOL

taxpayers’ group return. With the initial return and

of time to file for the following year by the key

for all electing member corporations. If the key

thereafter, any payment of taxes for the taxable

corporation on behalf of the group, unless a written

corporation does not fulfill its obligation to pay tax

year shall be made using the key corporation’s

notice of termination of the election is provided to

or act on behalf of its members, each member may

the FTB on or before the time of payment.

Schedule R 2014 Side 7

8017143

Schedule R - California Apportionment And Allocation Of Income - 2014 Page 7

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