1120-US: Calculating the amount of additional tax owed by each member under the proportionate method of allocation (FAQ)

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Question

How does UltraTax/1120 calculate the amount of additional tax owed by each member under the proportionate method of allocation?

Answer

When the taxable income of the controlled group exceeds $100,000, UltraTax/1120 generates the Additional Tax Allocation Worksheet. This worksheet details the process specified under Federal Regulation 1.1561-2 to calculate the additional tax burden for each member under the proportionate method of allocation.

Related topic: 1120-US: Controlled group FAQs

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