Preparing an S Corporation consolidated income tax return

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Use this procedure to ensure the correct preparation of a new or existing S Corporation consolidated income tax return.

You may need to adjust your member clients' data before preparing the S Corporation consolidated income tax return.

When backing up or restoring a consolidated return, also back up or restore all member clients as well.

Note: The tax accrual options are not available for a consolidated return.

  1. Proforma or add the consolidated return, and the parent client, subsidiary clients, and eliminations client that are part of the consolidated group.


    • Including an eliminations client as part of the consolidated group is optional.
    • If processing an S Corporation parent return with Qualified Subchapter S Subsidiary (QSSS) members for Alabama, Arkansas, California, Georgia, Illinois, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Virginia, or Wisconsin, see State consolidated return processing (S Corporation).
  2. Retrieve general ledger balances from your CS Professional Suite accounting application that integrates with UltraTax CS for each member client.

    Note: If you use a CS Professional Suite accounting application to retrieve general ledger balances for a consolidated return in UltraTax/1120 Consolidated S, you need to set up individual clients in your accounting application for the parent company, the eliminations company, and each subsidiary company. A client that is departmentalized in the accounting application does not properly interface with the consolidated client in UltraTax/1120 Consolidated.

  3. Complete the remaining data entry for all member clients. Keep the level of detail consistent across all members of the consolidated group. Also, each member client's return should be complete and correct before proceeding to the next step.
  4. See Adding an S Corporation consolidated return if you are preparing a new S Corporation consolidated return.
  5. Review all consolidated input screens and complete any necessary remaining data entry. For each category that was not marked in the File > Client Properties > Advanced Properties > Options dialog, enter the necessary data in the applicable input screen(s). See Combining amounts for a C or S Corporation consolidated return for more information.
  6. To change amounts entered in the parent, eliminations, or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake in asset data entry of the first subsidiary, close the consolidated client and reopen the first subsidiary. Go into asset data entry for that client and correct the data. Close the subsidiary client and reopen the consolidated group. The correct number should now be a part of the consolidated group return.
  7. Print and review the consolidated tax return.

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