File short period international returns
Set up new entities in ONESOURCE Income Tax International to file short-period returns alongside existing full-year returns for foreign entities that have elected a 1-month deferral.
Foreign entities with no short period filing requirement follow the same return preparation process as prior years.
note
Other foreign entities that have previously elected a 1-month deferral are required to file a short period return.
As an example, these entities could have returns with December 1, 2024 – November 30, 2025 filing dates and short period returns of December 1, 2025 – December 31, 2025 dates.
In this situation:
- The December 1, 2024 – November 30, 2025 returns are filed from existing ONESOURCE entities and won't roll over to 2026 and beyond.
- Short period returns filed with the 1120 return require creatingNew Entitieswith December 1, 2025 – December 31, 2025 filing dates.noteIt's important thatNew Entitiesare created, not only new binders.
- New Entitiesneed to be created for the December 1, 2025 – December 31, 2025 short period returns, they’ll roll over for future return preparation.
- Unique entity numbers are required.New Entitiesand existing entities can't share numbers, or comp edit errors will occur during International TopCon computes.ons:
- Create new entity numbers for theNew Entities.
- Change company numbers of existing entities filing the December 1, 2024 – November 30, 2025 returns and use the real numbers for theNew Entities.
note
Rename existing entity numbers by putting an "X" in front of the entity number (for example, 12345 becomes X12345). This method is recommended as it:
- Identifiesdon't roll forwardentities.
- Sorts thedon't roll forwardentities to the bottom of the binder page.
- Preserves the real company number for the entities or binders that are used.
Entity setup summary
Existing Entity
- Binder Year: 2025
- Company Number: X12345 (rename withXprefix)
- Tax Period: December 1, 2024 – November 30, 2025
- Purpose: Files 12-month return
- Rollover to 2026: No
New Entity (Balance Sheet Rollover Only)
- Binder Year: 2024
- Company Number: 12345 (original company numbers)
- Tax Period: N/A
- Purpose: Creates beginning balances for the short period returns
- Rollover to 2026: Rollover to 2025
New Entity (Short Period Return)
- Binder Year: 2025
- Company Number: 12345 (original company numbers)
- Tax Period: December 1, 2025 – December 31, 2025
- Purpose: Files 1-month short period return
- Rollover to 2026: Yes
How to file short period returns
- Roll over all 2024 binders using the annual rollover process.
- Go to theEntitiestab.
- Open entity properties.
- Add anXprefix to the company number for each short period entity.
- Save and apply to the 2025 binder.
- Create an entity import file for short period entities using the original company number (noXprefix).
- Add a Binder Year column and set each entity's Binder Year to 2024.
- Select a Binder Name such asAs FiledorTax Return. Avoid date-specific names as they require renaming in future years.
- Add columns for International Div Con and Intercompany Data Entry Level. UseDivisionorDiv Con.
- Create a 2024 Exchange Rate Chart for theNew Entities2024 binders using rates from the December 1, 2024 – November 30, 2025 Exchange Rate Chart.
- Use ECP to assign charts, compute options, and international options to theNew Entities2024 binders.
- Use Workpapers Classic to import Organizer data to the 2024 binders. Refer to the Workpapers Classic Imports section for a full list.
- Import trial balances, book adjustments, and reclass adjustments intoNew Entities2024 binders.noteUse trial balances from 2025Xbinders, Exchange Rate Chart, and USD Book Balance Overrides.
- TAS Compute the 2024 binders and verify the ending balance sheets match the 2025Xbinders usingData Query Reporting Working Trial Balance Reports. No further processing is required.
- Roll over theNew Entities2024 binders to 2025. The 2025 binders will contain beginning balance sheets and file the December 1, 2025 – December 31, 2025 returns.
- Add theNew Entitiesto theInternational Memberstab of the Top Consolidation 1120 Return binder and complete their International Ownership.note
- Export existing International Ownership
- Create an import file forNew Entities
- RemoveXfrom the company number if ownership is unchanged
- Export and import final Subpart F characteristics to the 2025 short period binders after processing the 2024–2025 returns via :
- Post-86 E&P and Taxes Ending Balances
- PTI in USD Basis Ending Balances
- Qualified Deficit Ending Balances
- Hovering Deficit Ending Balances
- Subpart F Recapture Ending Balances
importantAdjust 2025 layers to a prior year before importing the December 1, 2025 – December 31, 2025 binders. The current year can't be included in the beginning balance screens. - Use the ECP 52/53 Week Option to populate accounting period and tax year dates for foreign binders.noteRun TAS Compute after ECP to updateOrganizerdates.
- Continue processing returns in the Top Consolidation 1120 Return binder.noteSubpart F changes in November 30, 2025 returns require balance updates for December 2025 returns.
Workpapers classic imports
- Foreign Info-FC-Filer Info
- Foreign Info-FC-Gen Info
- Foreign Info-FC-Gen Info-Agents
- Foreign Info-FC-Gen Info-Previous Ref ID
- Foreign Info-FC-Sch A-Stock
- Foreign Info-FC-Sch B Part I U.S. Shldr
- Foreign Info-FC-Sch B Part II Dir Shldr
- Foreign Info-FC-Sch B Part II Dir Shldr Stocks
- Foreign Info-FC-Sch G-1
- Foreign Info-FC-Sch G-Other Info-Line 14 Questions
- Foreign Info-FDE and FB-Gen Info
- Foreign Info-FDE and FB-Gen Info-Branch Office or Agent in the U.S.
- Foreign Info-FDE and FB-Gen Info-Country Organized
- Foreign Info-FDE and FB-Gen Info-Tax Owner of FDE
- Foreign Info-FDE and FB-Gen Info-Tax Owner of FDE-Ref ID
- Foreign Info-FDE and FB-Filer Info
- Foreign Info-FP-Filer Info
