Use the Parent entity type in a multi-tier consolidation
Understand the restriction on the Parent entity type designation in a multi-tier 1120 consolidated return or a Mixed Group 1120 insurance consolidated return.
IRS e-filing requirements limit a multi-tier 1120 consolidated return or a Mixed Group 1120 insurance consolidated return to no more than 1 locator designated with a Parent entity type. If you designate more than 1 locator as a Parent entity type, the application may use the incorrect locator as the parent of the entire consolidated return for electronic filing purposes.
note
Top consolidations and subconsolidations each require a locator in the Parent section of the consolidated list; this placement is mandatory for correct structure. However, only 1 locator across the entire consolidation should have its entity type set to Parent, even though a locator appears in the Parent section of each top consolidation and subconsolidation.
