What is a consolidated or composite return? How do I indicate that an 1120 is a composite return (box 1a)?
A group of corporations may consent to have their common parent corporation file one consolidated, or composite, return in lieu of each corporation filing a separate return. To indicate that a return is a consolidated return (and check box 1a on Form 1120, page 1), access screen 851 from the first Other Forms tab in data entry (or by clicking the blue link 851 on screen 1). Complete the 851 screen and then page down to complete parts III and IV on screens 851A and 851D. The subsidiaries attachment can be e-filed with the tax return if saved as a PDF and attached. See FAQ item N in 1120 data entry for more information.
In Drake Tax, you would need to first complete a return for each of the subsidiaries. The information from these returns would need to be combined in a spreadsheet and then used to create the consolidated, or composite, return filed by the parent corporation. The Trial Balance Import Spreadsheet template may be useful for this process.
See Related Links below for a template of the import spreadsheet and more information about using the Trial Balance Import function in Drake Tax.