1120 consolidation structure
How are consolidations set up within GoSystem Tax?
A consolidation is used to bring separate companies together to file 1 return. To file a consolidated return, there needs to be at least 2 companies included; there is no limit to how many other companies may also be included.
It is important to make sure that the structure of a consolidation is set up correctly. Follow the guide for selecting entity types.
Top Consolidations Allow:
- 1 Parent
- 1+ Subsidiary
- 1 Elimination
- 1+ SubconsolidationnoteEntity types of Corporate single entity, division, and top consolidation shouldn't be included under a top consolidation.
Subconsolidations Allow:
- Parent-subsidiary subconsolidation
- 1 Parent
- 1+ Subsidiary
- 1 Elimination
- 1+ SubconsolidationnoteEntity types of Corporate single entity, division, and top consolidation should not be included under a parent-subsidiary subconsolidation.
- Divisional rollup subconsolidation
- 1+ Division
- 1 Elimination
- 1+ Divisional rollup subconsolidationnoteEntity types of Corporate single entity, parent, subsidiary, top consolidation, and parent-subsidiary subconsolidation should not be included under a divisional rollup subconsolidation.
Single-Tier Structure
At minimum, there needs to be 4 locators used to create the consolidation:
Multi-Tier Structure
Subconsolidations create a 2nd tier within the consolidation:
Divisional rollup subconsolidation:
