Irs Form 851 PDF Details

The IRS Form 851, also known as the Affiliations Schedule, plays a crucial role for corporate groups filing consolidated income tax returns with the Department of the Treasury. This form is designed to outline the structure of an affiliated group by identifying the common parent corporation along with each member of the affiliated group. It meticulously tracks the flow of overpayment credits, estimated tax payments, and tax deposits distributed across the entities within the group. Furthermore, the form delves into principal business activities, voting stock information, changes in stock holdings during the tax year, and additional stock details, aiming to provide a comprehensive snapshot of the corporations’ affiliations and financial maneuvers. To ensure accuracy and compliance, the form includes sections for detailing nondividend distributions, changes in stock through acquisitions or dispositions, worthless stock situations, and potential stock acquisitions by individuals or entities outside the affiliated group. The detailed instructions accompanying the form guide filers through reporting requirements and various scenarios, emphasizing the significance of Form 851 in maintaining transparency and accountability in the consolidated tax filing process. By compiling this information, the IRS ensures that the affiliated group’s tax liabilities and credits are accurately accounted for, reflecting the complex financial relationships and transactions within a corporate family.

QuestionAnswer
Form NameIrs Form 851
Form Length4 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min
Other namesform 851 instructions 2020, how do i change my political party affiliation, affiliating meaning, form 851 instructions

Form Preview Example

Form 851

 

AFFILIATIONS

SCHEDULE

 

 

 

 

 

 

 

 

For tax year ending

,

 

OMB No. 1545-0123

(Rev. October 2016)

 

 

 

 

 

File with each consolidated income tax return.

 

 

Department of the Treasury

 

 

 

 

Information about Form 851 and its instructions is at www.irs.gov/form851.

 

Internal Revenue Service

 

 

Name of common parent corporation

 

 

Employer identification number

 

 

 

 

 

 

Number, street, and room or suite no. If a P.O. box, see instructions.

City or town, state, and ZIP code

Part I

Overpayment Credits, Estimated Tax Payments, and Tax Deposits (see instructions)

 

 

 

 

Employer

Portion of

Portion of tax

Corp.

 

 

overpayment credits

 

Name and address of corporation

identification

deposited with

No.

 

and estimated

 

 

number

Form 7004

 

 

 

tax payments

 

 

 

 

 

 

 

 

 

 

1

Common parent corporation

 

 

 

 

Subsidiary corporations:

 

 

 

2

 

 

 

 

 

3

 

 

 

 

 

4

 

 

 

 

 

5

 

 

 

 

 

6

 

 

 

 

 

7

 

 

 

 

 

8

 

 

 

 

 

9

 

 

 

 

 

10

 

 

 

 

 

Totals (Must equal amounts shown on the consolidated tax return.) . . . .

Part II

Principal Business Activity, Voting Stock Information, Etc. (see instructions)

 

 

 

 

 

 

Did the subsidiary

 

Stock holdings at beginning of year

 

 

PBA

 

 

 

 

Corp.

 

make any nondividend

Number

Percentage

 

Owned by

Principal business activity (PBA)

Code

 

 

 

 

Percentage

 

distributions?

No.

of

of voting

corporation

 

 

 

No.

 

 

 

of value

 

 

 

 

 

 

 

 

 

 

shares

power

no.

 

 

 

Yes

No

 

 

 

 

 

 

 

 

Common parent corporation

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

Subsidiary corporations:

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

%

%

 

3

%

%

4

%

%

5

%

%

6

%

%

7

%

%

8

%

%

9

%

%

10

%

%

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 16880G

Form 851 (Rev. 10-2016)

Form 851 (Rev. 10-2016)

 

 

 

 

 

 

 

Page 2

 

 

 

 

 

 

 

 

 

 

Part III

Changes in Stock Holdings During the Tax Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) Shares held after

 

 

 

 

Share-

 

(a)

Changes

changes described in

 

 

 

 

Date

 

 

 

column (a)

Corp.

 

 

 

holder of

 

 

 

 

Name of corporation

of

 

 

 

 

 

No.

 

 

Corpora-

transaction

Number of

 

Number of

 

 

 

 

 

 

tion No.

 

Percentage of

Percentage of

 

 

 

 

 

shares

 

shares

 

 

 

 

 

 

 

voting power

value

 

 

 

 

 

 

acquired

 

disposed of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

 

 

 

 

 

 

 

 

 

%

%

(c)If any transaction listed above caused a transfer of a share of subsidiary stock (defined to include dispositions and deconsolidations), did the share's basis exceed its value at the time of the transfer? See

instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)Did any share of subsidiary stock become worthless within the meaning of section 165 (taking into account

the provisions of Regulations section 1.1502-80(c)) during the taxable year? See instructions . . . .

Yes

Yes

No

No

(e)If the equitable owners of any capital stock shown above were other than the holders of record, provide details of the changes.

(f)If additional stock was issued, or if any stock was retired during the year, list the dates and amounts of these transactions.

Form 851 (Rev. 10-2016)

Form 851 (Rev. 10-2016)

Page 3

 

 

 

Part IV

Additional Stock Information

(see instructions)

1 During the tax year, did the corporation have more than one class of stock outstanding? . . . . . .

If “Yes,” enter the name of the corporation and list and describe each class of stock.

Yes

No

Corp.

No.

Name of corporation

Class of stock

2During the tax year, was there any member of the consolidated group that reaffiliated within 60 months of disaffiliation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” enter the name of the corporation(s) and explain the circumstances.

Yes

No

Corp.

No.

Name of corporation

Explanation

3During the tax year, was there any arrangement in existence by which one or more persons that were not members of the affiliated group could acquire any stock, or acquire any voting power without acquiring

stock, in the corporation, other than a de minimis amount, from the corporation or another member of the affiliated group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” enter the name of the corporation and see the instructions for the percentages to enter in columns (a), (b), and (c).

Yes

No

 

 

(a)

(b)

(c)

Corp.

Name of corporation

Percentage of

Percentage of

No.

Percentage of value

outstanding voting

 

voting power

 

 

 

stock

 

 

 

 

 

 

%

%

%

 

 

%

%

%

 

 

%

%

%

 

 

%

%

%

Corp.

(d) Provide a description of any arrangement.

 

 

 

No.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Form 851 (Rev. 10-2016)

Form 851 (Rev. 10-2016)

Page 4

 

 

Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Future Developments

For the latest information about developments related to Form 851 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form851.

Purpose of Form

Use Form 851 to:

1.Identify the common parent corporation and each member of the affiliated group;

2.Report the amount of overpayment credits, estimated tax payments, and tax deposits attributable to each corporation; and

3.Determine that each subsidiary corporation qualifies as a member of the affiliated group.

Who Must File

The parent corporation must file Form 851 for itself and for corporations in the affiliated group. File Form 851 by attaching it to the consolidated tax return for the group.

Affiliated Group

An affiliated group is one or more chains of includible corporations connected through stock ownership with a common parent corporation. See sections 1504(a) and (b). The common parent must be an includible corporation and the following requirements must be met.

1.The common parent must own directly stock that represents at least 80% of the total voting power and at least 80% of the total value of the stock of at least one of the other includible corporations.

2.Stock that represents at least 80% of the total voting power, and at least 80% of the total value of the stock of each of the other corporations (except for the common parent) must be owned directly by one or more of the other includible corporations.

For this purpose, the term “stock” generally doesn't include any stock that:

1.Is nonvoting,

2.Is nonconvertible,

3.Is limited and preferred as to dividends and doesn't participate significantly in corporate growth, and

4.Has redemption and liquidation rights that don't exceed the issue price of the stock (except for a reasonable redemption or liquidation premium).

Address

Include the suite, room, or other unit number after the street address. If the post office does not deliver mail to the street address and the corporation has a P.O. box, show the box number instead.

Corporation Numbers

When listing information in Parts II, III, and IV, use the same number for the common parent corporation and for each subsidiary corporation as the number listed in Part I.

Part I

Portion of overpayment credits and estimated tax payments. Enter for the common parent corporation and for each subsidiary corporation the amount of:

Overpayments of tax from the prior tax year that each corporation elected to credit to the current year's tax, and

Estimated tax payments made by each corporation.

The total must be the same as the amounts entered on the lines for overpayments and estimated tax payments on the consolidated income tax return.

Tax deposited with Form 7004. Enter for the common parent the tax deposited with Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, that is attributable to each corporation. The total must be the same as the amount entered on the “Tax deposited with Form 7004” line on the consolidated income tax return.

Part II

Principal business activity (PBA) and PBA Code No. Enter the PBA and the PBA code number for the common parent corporation and for each subsidiary corporation. Use the activity for the specific industry group from which the largest percentage of each corporation's total receipts is based.

A list of the PBAs and code numbers is located in the Instructions for Form 1120. Nondividend distributions. Nondividend distributions are any distributions (other than stock dividends and distributions in exchange for stock) made to shareholders during the tax year for which the consolidated tax return is filed that were in excess of the corporation's current and accumulated earnings and profits. See sections 301 and 316 and Form 5452, Corporate Report of Nondividend Distributions.

Part III

Question (c). For this purpose, the term “transfer” includes transactions in which (1) a shareholder-member ceases to own a share of subsidiary stock in a transaction in which the shareholder-member recognizes income, gain, deduction, or loss on the stock; (2) a shareholder-member and the subsidiary cease to be members of the same consolidated group; and (3) a nonmember acquires the share from a member. If any type of transfer occurs and the share's basis would otherwise exceed its value at the time of the transfer, certain adjustments to members' bases in shares of the subsidiary's stock and to the subsidiary's attributes may be required. See Regulations section 1.1502-36. Question (d). If a share of subsidiary stock becomes worthless within the meaning of section 165 (taking into account the provisions of Regulations section

1.1502-80(c)) during the group's taxable year, certain adjustments to shareholder-members' bases in shares of the subsidiary's stock and/or to the subsidiary's attributes may be required. See Regulations sections 1.1502-19 (b)(1)(iv) (if the basis of the share is equal to or less than zero) and 1.1502-36 (if the basis of the share is greater than zero).

Item (e). The term “equitable owners” of stock means those that essentially have all the rights to enjoy the benefits of stock ownership without actually holding the stock, for example, beneficiaries of a trust.

Part IV

Question 1. For purposes of question 1 only, disregard certain preferred stock as described in section 1504(a)(4).

Question 3. The term “arrangement” includes, but is not limited to, phantom stock, stock appreciation rights, an option, warrant, conversion feature, or similar arrangements. Item 3a. Show the percentage of the value of the outstanding stock that the person(s) could acquire.

Item 3b. If the arrangement was associated with voting stock, show the percentage of outstanding voting stock that the person(s) could acquire.

Item 3c. If the arrangement was associated with the acquisition of voting power without the acquisition of the related stock, show the percentage of voting power that the person(s) could acquire.

Item 3d. Give a brief description of any arrangement (defined above) by which a person that is not a member of the affiliated group could acquire any stock, or acquire any voting power without acquiring stock, in the corporation.

Paperwork Reduction Act Notice

We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for business taxpayers filing this form is approved under OMB control number

1545-0123 and is included in the estimates shown in the instructions for their business income tax return.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

How to Edit Irs Form 851 Online for Free

You could work with irs form 851 pdf instantly with our PDF editor online. FormsPal team is constantly endeavoring to enhance the editor and insure that it is even better for people with its multiple functions. Uncover an constantly progressive experience now - check out and discover new possibilities along the way! To get the process started, consider these easy steps:

Step 1: Click on the orange "Get Form" button above. It'll open up our tool so that you can start filling out your form.

Step 2: As you start the PDF editor, you will get the form all set to be completed. In addition to filling out different blank fields, you may as well perform several other actions with the PDF, such as writing custom words, editing the initial text, adding graphics, signing the document, and more.

This PDF will require particular data to be entered, thus make sure to take your time to enter precisely what is required:

1. First, while completing the irs form 851 pdf, beging with the section that features the subsequent blank fields:

how do i change my political party affiliation writing process detailed (portion 1)

2. Soon after this section is done, go to enter the suitable information in all these - Totals Must equal amounts shown on, Part II Principal Business, Principal business activity PBA, Common parent corporation, Subsidiary corporations, Did the subsidiary, make any nondividend, distributions, PBA Code No, Yes, Stock holdings at beginning of year, Number, Percentage, shares, and of voting power.

Principal business activity PBA, Did the subsidiary, and distributions of how do i change my political party affiliation

3. Within this step, take a look at For Paperwork Reduction Act Notice, Cat No G, and Form Rev. Every one of these should be taken care of with greatest attention to detail.

how do i change my political party affiliation completion process shown (step 3)

It is easy to make a mistake while completing your Cat No G, therefore make sure you reread it prior to when you finalize the form.

4. The next paragraph will require your involvement in the following areas: shares acquired, disposed of, Percentage of voting power, value, Yes, If any transaction listed above, d Did any share of subsidiary, the provisions of Regulations, and Yes. Remember to enter all required info to move further.

d Did any share of subsidiary, value, and disposed of inside how do i change my political party affiliation

5. To conclude your document, this particular part includes several extra fields. Entering If the equitable owners of any, If additional stock was issued or, and Form Rev will conclude everything and you'll surely be done in an instant!

If the equitable owners of any, If additional stock was issued or, and Form  Rev inside how do i change my political party affiliation

Step 3: Go through all the information you have inserted in the blanks and then click on the "Done" button. Create a free trial subscription at FormsPal and obtain immediate access to irs form 851 pdf - download, email, or change in your FormsPal account. FormsPal guarantees safe form completion devoid of personal information record-keeping or sharing. Feel at ease knowing that your data is safe here!