Form 1122

What Is A Form 1122

IRS Form 1122, titled "Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return," is a critical document for subsidiary corporations that choose to be included in a consolidated tax return filed by the parent company. By completing and submitting this form, the subsidiary gives explicit authorization and consent to be part of the consolidated group for federal income tax purposes.

When to Use IRS Form 1122

There are several situations where a subsidiary corporation must file Form 1122:

• When a subsidiary corporation joins a consolidated group for the first time.
• If ownership has changed and the subsidiary has a different parent company.
• When a subsidiary decides to rejoin a consolidated group after previously revoking its consent.
• In cases where the subsidiary needs to align its tax year with the consolidated groups,
• Corporations must assess their tax situation to determine when filing this form is appropriate.

How To Fill Out Form 1122 Instruction

Here is a step-by-step guide to filling out Form 1122, "Authorization and Consent of Subsidiary Corporation To Be Included in a Consolidated Income Tax Return."

Step 1: Tax Year and Subsidiary Corporation Details
Enter the tax year or the start and end dates if the fiscal year of the subsidiary corporation differs from the calendar year.

Provide the subsidiary corporation's name, address (street, room, suite), city, state, ZIP code, and employer identification number (EIN).

Step 2: Parent Corporation Information

Write the parent corporation's name and employer identification number (EIN), which includes the subsidiary in its consolidated return.

Step 3: Authorization and Consent

Thoroughly read the statement indicating the subsidiary's authorization and consent for the parent corporation to include it in a consolidated return. Understand the commitment, as this will bind the subsidiary to the consolidated return regulations.

Step 4: Signature and Declaration

An authorized subsidiary official should sign the form, attesting to its accuracy and completeness under the penalties of perjury.

Include the signing date and the signatory officer's title (CFO, CEO, etc.).

Step 5: Submission of Form

For the subsidiary corporation: The subsidiary must submit the originally signed Form 1122 to the common parent corporation for the first tax year it consents to be included in the group’s consolidated income tax return.

When to File Form 1122

Form 1122 should be filed in the following scenarios:

• When a subsidiary corporation joins a consolidated group, it must attach Form 1122 to the parent corporation's timely filed consolidated tax return for the year the subsidiary wishes to join.
• While the initial filing is critical, the form does not need to be filed for each subsequent tax year unless there is a change in the ownership structure or the subsidiary revokes and then later wishes to rejoin the consolidated group.