Chapter 12 - Corporations

Question 1

Businesses qualify as corporations that formed before 1997 are:

Answer 1

1) A business that is legally chartered as a corporation

2) A Joint Stock company

3) An insurance company

3) any business that meets the following:
1) Centralization of management
2) Continuity of life
3) Free transferability
4) Limited liability

Question 2

Parent Subsidiary

Answer 2

A Controlled group that:
1) 80% or more of total voting power ; 80% or more of total value outstanding of the stock of the other

Question 3

Brother Sister

Answer 3

A controlled group that consists of any two or more corporations with shares owned by 5 or less individuals, trusts, or estates:

Representation:
1) 80% or more of total voting power of all classes; 80% or more of value of all classes

2) Smallest ownership is accounting each person who

More than 50% of voting power of all classes or more than 50% of value of all classes.

Question 4

Excluded Control Group Corporations

Answer 4

Tax exempted Corporations

Insurance Corporations

Question 5

How to file a corporation’s short period return?

Answer 5

Must be filed by a new corporation or a dissolved corporation by the 15 day of the 4th month or after short period ends or date dissolved. .

Question 6

What is the filing date if the corporation has a fiscal date of June 30?

Answer 6

15th day of the 3rd month following the close of the tax year (beginning after 12/31/2025 )