1120-US: S Corporation not a member of a 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.


Why isn't an S Corporation a member of a controlled group?


Under IRC Regulation 1.1563-1(b)(2)(ii)(C), an S Corporation is treated as an excluded member of a controlled group. An S Corporation is not subject to any tax to which the tax bracket amounts of Section 11(b)(1) apply, or any other tax benefit item to which Section 1561(a) applies. Therefore, you can treat S Corporations as an excluded member of a controlled group.

Because an S Corporation is not included in a controlled group, Schedule O, consent Plan and Apportionment Schedule for a Controlled Group, does not apply. Also, an S Corporation is not required to apportion the Section 179 deduction.

Related topic: 1120-US: Controlled group FAQs

Share This