Advice on signing a consolidated return statute extension

Plain-English summary

Chief Counsel Advice addresses who must sign a new Form 872-P in a consolidated-return situation. The memo says that the parent of the tax-matters person does not need to sign the form for the relevant years, based on Treas. Reg. § 1.1502-77(a)(3)(v). It also says a subsidiary partner cannot extend the statute for the parent and other subsidiaries under that provision, and that the IRS typically assesses the parent. The memo recommends confirming the caption for Form 872 so it identifies the parent and subsidiaries as required.

Ruling snapshot

• Question: Which parties must sign and how should Form 872-P be captioned for a consolidated group?
• Outcome: Advice given
• Key authorities: IRC § 6229; Treas. Reg. § 1.1502-77(a)(3)(v); Form 872-P

Full text (IRS public release)

ID: CCA-320933-13
Office: -------------
UILC: 6229.02-00
Number: 201324015
Release Date: 6/14/2013
From: --------------------
Sent: Wednesday, March 20, 2013 9:33 AM
To: ------------------
Cc: -----------------------------------------------
Subject: 872 question

--------- - your advice is correct except that the parent of the TMP need not sign the
new Form 872-P. Treas. Reg. 1.1502-77(a)(3)(v), effective for taxable years beginning
on or after June 28, 2002 resolved this issue.

But the sub partner cannot extend the statute
for the parent and other subs under this provision and we typically only assess the
parent. So we don’t really need the sub to sign the parent extension.

------------------------in ------- can help you with the caption of Form 872. I think it may only
need to specify the parent name “and subsidiaries”, but ------- may have a more
particularized way of doing this.