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

from the supporting statement ﬁ led with federal Form 1120

for consolidated returns. Attach the supporting statement

NOTE: Only unitary business group members are to be

from the federal Form 1120 consolidated return.

included on this form. Afﬁ liated non-unitary members

Column 4.

Enter the net income per books of each member

are not to be included.

in column 2 that ﬁ led a separate federal return (member’s

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

net income from federal Form 1120, line 28 or equivalent

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

income from other federally ﬁ led return). Entries in column 4

income or loss per books required to be reported pursuant

relate to members engaged in a unitary business that were

to the laws of the United States and apportioned to this state

not included in a federal consolidated return.

36 M.R.S.A. § 5206-D(13).

Column 5.

Enter adjustments for eliminations, deferrals

COMBINED REPORTING

and other modiﬁ cations provided for under federal law

and regulations, but not included in column 3. Include any

Financial institutions with Maine net income that are members

intercompany transactions between members on this report

of an afﬁ liated group engaged in a unitary business must

if those transactions resulted in gains or losses. Similar

ﬁ le a combined report. Financial institutions that conduct a

adjustments are required for business members that are

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

not part of the same consolidated ﬁ ling. These adjustments

must be excluded from the combined report. This includes

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

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

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

federal tax return.

819 by one member to another member; (b) deferrals of

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

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

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

deferrals of gains/losses from intercompany sales of ﬁ xed

each member is directly or indirectly owned by a common

assets. Attach a worksheet detailing adjustments claimed

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

in column 5.

one or more of the member ﬁ nancial institutions. 36 M.R.S.A.

Column 6(A).

Combine columns 3, 4 and 5. This is the

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

adjusted separate income of each member engaged in the

characterized by unity of ownership, functional integration,

unitary business.

centralization of management and economies of scale. 36

M.R.S.A. § 5206-D(22).

Column 6(B).

Enter the total end-of-year assets from the

federal return or pro forma federal return.

All ﬁ nancial institutions required to ﬁ le federal returns that are

engaged in a unitary business are required to be included in

Columns 7-9.

Enter each ﬁ nancial institution’s share of

the combined report of any taxable ﬁ nancial institution with

receipts, payroll and property of the unitary business. See

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

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

nexus with Maine.

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

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

COLUMN INSTRUCTIONS

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

Column 1.

Put a check in this column for those corporations

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

listed in column 2 that have nexus with Maine.

ﬁ led for the entire group.

Column 2.

Enter the name and federal identiﬁ cation number

LINE INSTRUCTIONS

of each member engaged in a unitary business.

Line 17.

To the extent not already eliminated, remove all

NOTE:

Each member participating in the unitary

intercompany transactions resulting in gains or losses.

business should have an amount entered in

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

either column 3 or column 4, but not both.

worksheet that details adjustments claimed on this line.

Line 18.

Enter the total for each of columns 3 through 9.

Column 3.

Enter the separate net income per books of each

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

member in column 2 that was part of a federal consolidated

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

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

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

Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions - 2012 Page 5

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