About federal consolidations
During the federal consolidation process, information for the parent company and each subsidiary or division included in the consolidated tax return's combined in a consolidation binder.
This process is accomplished by performing these steps:
- Consolidate entities and binders
- For state purposes you may need a new binder: If the state return members are different from your federal, if you don't need to process a federal consolidation, if you want to maintain separate data files for state purposes, or if entities in your combined group for which you're not using an existing federal return binder.
- Print the consolidated return, and if applicable, any state combined/consolidated returns
Federal consolidation capabilities
- Performs complex multi-tier consolidations
- Combines data from parent, subsidiaries, and divisions
- Computes eliminations and adjustments
- Prepares Tax Bracket Allocation Schedule and Controlled Group Election Statement
- Offers stacked and cross-tied whitepaper for consolidated federal Form 1120
- Provides look-through print options for sub-consolidated detail
- Provides summary consolidated return schedules in 8-column format for key federal forms and schedules including:
- Form 1120
- Forms 4562, 4626, 3468, 3800, 4797, 5884, 6478, 6765, and Schedule D
- Computes limitations for NOL, contributions, capital loss carryovers, various credits, and SRLY/non-SRLY NOL deduction
Types of consolidations
The system offers these types of consolidations:
- Single-tier consolidation- All entities (parent, subsidiaries, and eliminations) are combined into 1 consolidation binder.Single-tier consolidation
- Multi-tier consolidation - A divisional / subsidiary consolidation's the combining of financial information for specific levels of divisions and subsidiaries. Because these lower level consolidations will be combined into a Top Consolidation, these consolidations are referred to as multi-tier consolidations. The divisional/subsidiary consolidation binders include individual binders for each subsidiary, a binder for the parent entity, subconsolidation binders for each group of divisions, an elimination binder for each subconsolidation group, and the Top Consolidation binder.Multi-tier consolidation
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