Question

Consolidated returns may be filed A. Either by parent-subsidiary corporations or by brother-sister corporations. B. Only by corporations that formally request advance permission from the IRS C. Only by parent-subsidiary affiliated groups. P. Only by corporations that issue their financial statements on a consolidated basis.

Answer 1

Answer:

-Only by parent-subsidiary affiliated groups.

Explanation:

A consolidated tax return is when a corporation or corporations under one umbrella decide or elect to combine their tax return as one or a single return.

Here consolidated tax return is tax liability filed by all includible corporations in the affiliated group as one tax return. Includible corporations are connected by stock ownership and have a parent corporation.