Match each of the following terms with the appropriate description in the context of a consolidated Federal income tax return.
-Binding nature of election over multiple tax years.
A)Advantage of consolidating
B)Disadvantage of consolidating
C)Neither an advantage nor a disadvantage

Question

Quizplus · Accepted Answer

The binding nature of election over multiple tax years is considered a disadvantage of consolidating because once an election is made, it often cannot be changed in future years without IRS consent, limiting flexibility.

Match Each of the Following Terms with the Appropriate Description