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:

Voting Rights

The entitlement of shareholders or members of an organization to vote on matters affecting the governance of the entity.

Vicarious Liability

The liability or responsibility imposed on a person, a party, or an organization for damages caused by another; most commonly used in relation to employment, with the employer held vicariously liable for the damages caused by its employees.

Litigation Misconduct

refers to inappropriate or unethical behavior by any party involved in the legal process, including attorneys, which can influence the outcome or process of litigation.

Joint Venture

An association between two or more parties wherein the parties share profits and management responsibilities with respect to a specific project.