1120-US: Consolidated member information statement on Form 7004 not completed (FAQ)

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Question

Why isn't the consolidated member information statement on Form 7004 completed for my consolidated S Corporation return?

Answer

UltraTax CS marks Form 7004, line 3 if the organization is a corporation and the common parent of a group that intends to file a consolidated return. A schedule listing the name, address, and EIN of each member covered in the application for extension is also attached to Form 7004.

When a parent S Corporation elects to treat its subsidiary as a Qualified Subchapter S Subsidiary (QSSS), the subsidiary is deemed to liquidate and no longer exist for federal tax purposes. The subsidiary is treated as a disregarded entity of the S Corporation parent. Therefore, the statement for consolidated member information on Form 7004, line 3 is not required for an S Corporation with QSSS members. The line 3 statement is only required for a C Corporation consolidated return.

Related topic: 1120-US: Extensions FAQs

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