Which of the following is not a requirement that must be met before a group files a consolidated return?
A) None of the corporations can be ineligible under the Code to file on a consolidated basis with the others.
B) All of the corporations must be members of an affiliated group.
C) The group members must share the same inventory accounting method,
D) The group members must share a common tax year end.
E)g., they all must use FIFO).

Question

Quizplus · Accepted Answer

The requirement that group members must share the same inventory accounting method (e.g., they all must use FIFO) is not a requirement for filing a consolidated return. The key requirements for filing a consolidated return include all corporations being eligible under the Code, being members of an affiliated group, and sharing a common tax year end. The specific inventory accounting method used by each corporation is not a factor in determining eligibility for filing a consolidated return.

Which of the Following Is Not a Requirement That Must