1120-US: Allocation methods used to assign the additional five-percent and three-percent taxable income brackets (FAQ)

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Question

What methods of allocation are permitted to assign the additional five-percent and three-percent taxable income brackets?

Answer

Unless the members of a controlled group elect to use the first-in-first-out (FIFO) method, members are required to apportion the amount of additional tax using the proportionate method.

Related topic: 1120-US: Controlled group FAQs

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