1120-US: Additional five-percent tax on the controlled group (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

Question

Why is UltraTax/1120 calculating an additional five-percent tax on the controlled group?

Answer

The five-percent additional tax is assessed when the total taxable income of the controlled group exceeds $100,000. The additional tax is equal to the lesser of: (a) five percent of the controlled group's taxable income exceeding $100,000, or (b) $11,750.

Related topic: 1120-US: Controlled group FAQs

Share This