Instructions For Form 1120-Pc - 2016 (Page 6 of 23) in pdf

corporation is being included in a

the common parent is any other type of

Specific Instructions

consolidated return, attach Form 1122,

corporation.

Authorization and Consent of Subsidiary

Indicate clearly on the face of the return

Period Covered

Corporation To Be Included in a

that the corporate tax return is a

Consolidated Income Tax Return, to the

life-nonlife return. This requirement is

Generally, file the 2016 return for calendar

parent's consolidated return. Attach a

satisfied by checking boxes 1 and 2 of

year 2016. However, if an insurance

separate Form 1122 for each new

Item A on page 1.

company joins in the filing of a

subsidiary being included in the

Show any setoffs required by

consolidated return, it may adopt the tax

consolidated return.

paragraphs (g), (m), and (n) of

year of the common parent corporation

Regulations section 1.1502-47.

even if that year is not a calendar year. For

File supporting statements for each

Report separately the nonlife

a fiscal or short tax year return, fill in the

corporation included in the consolidated

consolidated taxable income or loss,

tax year space at the top of the form.

return. Do not use Form 1120-PC as a

determined under Regulations section

substitute for the supporting statement.

1.1502-47(h), on a Form 1120 or 1120-PC

Name and Address

On the supporting statement, use columns

(whether filed by the common parent or as

to show the following, both before and

Enter the corporation's true name (as set

an attachment to the consolidated return),

after adjustments.

forth in the charter or other legal document

for all nonlife members of the consolidated

creating it), address, and EIN on the

1. Items of gross income and

group.

appropriate lines. Enter the address of the

deductions.

Report separately the consolidated

corporation's principal office or place of

partial Life Insurance Company Taxable

2. A computation of taxable income.

business. Include the suite, room, or other

Income (as defined by Regulations section

3. Balance sheets as of the beginning

unit number after the street address. If the

1.1502-47(d)(3)) determined under

and end of the tax year.

post office does not deliver mail to the

Regulations section 1.1502-47, on a Form

street address and the corporation has a

4. A reconciliation of income per

1120-L (whether filed by the common

P.O. box, show the box number instead.

books with income per return.

parent or as an attachment to the

consolidated return), for all life members

5. A reconciliation of retained

Note. Do not use the address of the

of the consolidated group.

earnings.

registered agent for the state in which the

Schedule M-3 (Form 1120-PC)

corporation is incorporated. For example,

Enter on Form 1120-PC the totals for

if a business is incorporated in Delaware

each item of income, gain, loss, expense,

A nonlife insurance company with total

or Nevada and the corporation's principal

or deduction, net of eliminating entries for

assets (non-consolidated or consolidated

office is located in Little Rock, Arkansas,

intercompany transactions between

for all companies included within a tax

the corporation should enter the Little

corporations within the consolidated

consolidation group) of $10 million or

Rock address.

group. Attach consolidated balance

more on the last day of the tax year must

sheets and a reconciliation of

If the corporation has a foreign

file Schedule M-3 (Form 1120-PC), Net

consolidated retained earnings.

address, include the city or town, state or

Income (Loss) Reconciliation for U.S.

province, country, and foreign postal

Property and Casualty Insurance

For more information on consolidated

Companies With Total Assets of $10

code. Do not abbreviate the country

returns, see the regulations under section

Million or More, instead of Schedule M-1.

name. Follow the country's practice for

1502.

entering the name of the state or province

A corporation filing Form 1120-PC that is

and postal code.

not required to file Schedule M-3 may

Note. If a nonlife insurance company is a

voluntarily file Schedule M-3 instead of

member of an affiliated group, file Form

If the corporation receives its mail in

Schedule M-1.

1120-PC as an attachment to the

care of a third party (such as an

consolidated return in addition to the

If you are filing Schedule M-3 (Form

accountant or an attorney), enter on the

supporting statements discussed, earlier.

1120-PC), check Item A, box 3 at the top

street address line “C/O” followed by the

Across the top of page 1 of Form

of page 1 of Form 1120-PC. See the

third party's name and street address or

1120-PC, write “Supporting Statement to

Instructions for Schedule M-3 (Form

P.O. box.

Consolidated Return.”

1120-PC) for more details.

Item A. Identifying

Life-Nonlife Consolidated

Note. If you do not file Schedule M-3

Information

Return

(Form 1120-PC) with Form 1120-PC, see

If the corporation is the common parent of

Reconciliation under Statements, earlier.

Consolidated Return

a life-nonlife consolidated group, check

Item B. Employer

If an affiliated group of corporations

boxes 1 and 2 of Item A.

includes one or more domestic life

Identification Number

Filing requirements. The common

insurance companies taxed under section

parent of a life-nonlife consolidated group

(EIN)

801, the common parent may elect to treat

is required to do the following.

those companies as includible

Enter the corporation's EIN. If the

File the applicable consolidated

corporations. The life insurance

corporation does not have an EIN, it must

corporate income tax return: as a Form

companies must have been members of

apply for one. An EIN can be applied for:

1120-L, U.S. Life Insurance Company

the group for the 5 tax years immediately

Online—Click on the Employer ID

Income Tax Return, where the common

preceding the tax year for which the

Numbers (EINs) link at

parent is a life insurance company; a Form

election is made. See section 1504(c)(2)

The EIN is

1120-PC, U.S. Property and Casualty

and Regulations section 1.1502-47(d)(12).

issued immediately once the application

Insurance Company Income Tax Return,

information is validated.

where the common parent is an insurance

Corporations filing a consolidated

By faxing or mailing Form SS-4,

company, other than a life insurance

return must check box 1 of Item A and

Application for Employer Identification

company; or a Form 1120, U.S.

attach Form 851, Affiliations Schedule,

Number.

Corporation Income Tax Return, where

and other supporting statements to the

return. Also, for the first year a subsidiary

Instructions for Form 1120-PC (2016)

-6-

Instructions For Form 1120-Pc - 2016 Page 6

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