A parent may file a consolidated income tax return with only foreign subsidiaries.

Name: A parent may file a consolidated income tax return with only foreign subsidiaries.
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Question

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A parent company cannot file a consolidated income tax return with only foreign subsidiaries because U.S. tax law generally allows consolidated tax filings only for U.S.-based entities that are part of the same corporate group. Foreign subsidiaries are typically required to comply with the tax laws of their respective countries.

A Parent May File a Consolidated Income Tax Return with Only