If Any Member of an Affiliated Group Does Not Join

question 18

Multiple Choice

If any member of an affiliated group does not join in the filing of a consolidated return,

• A)The tax liability of each member is determined as if separate returns were filed.
• B)The group is automatically terminated by the IRS.
• C)The tax liability of each member is determined by spreading out liability among the remaining groups.
• D)The common parent is held responsible even if it was an inadvertent error.
• E)None of the above

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Definitions:

The Former Soviet Union

A term referring to the socialist state that existed from 1922 to 1991, comprising Russia and several other republics.

Personal Savings

The portion of an individual's income that is not spent on consumption or taxes and is instead retained for future use or investment.

United States

A country located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

LDC

An acronym for Less Developed Country, referring to a nation with a lower level of industrialization and lower living standards.