IRS Form 1122 – In the complex world of corporate taxation, consolidating income tax returns can offer significant advantages for affiliated groups of corporations. One essential document in this process is IRS Form 1122, which serves as the authorization and consent for a subsidiary corporation to be included in a consolidated return. This form ensures compliance with IRS regulations and helps streamline tax reporting for parent-subsidiary structures. Whether you’re a tax professional, business owner, or accountant navigating consolidated filings, understanding Form 1122 is crucial for accurate and efficient tax preparation.
This article provides an in-depth, SEO-optimized overview of IRS Form 1122, drawing from official IRS sources. We’ll cover its purpose, filing requirements, completion steps, and more, ensuring you have the latest information as of 2026.
What is IRS Form 1122?
IRS Form 1122, titled “Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return,” is a key form used by subsidiary corporations to formally agree to join a consolidated income tax return filed by their common parent corporation. It applies specifically to the first tax year a subsidiary is included in such a return and binds the subsidiary to the consolidated return regulations under the Internal Revenue Code.
The form’s primary purpose is twofold:
- Authorization: It allows the parent corporation to include the subsidiary’s income, deductions, credits, and other tax items in the group’s consolidated return.
- Consent: The subsidiary agrees to adhere to all provisions of the consolidated return regulations, including potential joint liability for the group’s taxes.
This consolidation can simplify tax filings for eligible affiliated groups, where the parent owns at least 80% of the subsidiary’s voting stock. However, it’s only required for the initial year of inclusion—subsequent years do not necessitate refiling unless the subsidiary leaves and rejoins the group.
The current revision of Form 1122 dates back to December 2003, with no major updates reported as of 2026. You can download the official PDF directly from the IRS website at https://www.irs.gov/pub/irs-pdf/f1122.pdf.
Who Needs to File IRS Form 1122?
Form 1122 is mandatory for subsidiary corporations that are joining a consolidated income tax return for the first time. This includes:
- Domestic corporations that are subsidiaries in an affiliated group electing to file a consolidated return.
- Newly acquired or formed subsidiaries being added to an existing consolidated group.
The form is not required for:
- The parent corporation itself (it files the main Form 1120 consolidated return).
- Subsidiaries already included in prior consolidated returns.
- Foreign corporations or certain exempt organizations, unless they meet specific IRS criteria for inclusion.
If your corporate structure involves mergers, acquisitions, or reorganizations, check IRS Publication 542 for supplemental guidance on corporate taxation. Always consult a tax advisor to determine eligibility, as consolidated returns can impact tax liabilities, net operating losses, and intercompany transactions.
When and How to File IRS Form 1122?
Timing is critical for Form 1122 compliance. The form must be prepared for the first tax year the subsidiary consents to inclusion in the consolidated return. Here’s a breakdown:
Filing Deadline
- Attach Form 1122 to the consolidated Form 1120 return, which is generally due on the 15th day of the fourth month following the close of the tax year (e.g., April 15 for calendar-year filers).
- For fiscal-year filers, align with the parent’s tax year end.
As of 2026, there are no reported changes to these deadlines, but extensions may be available via Form 7004.
How to File?
- Subsidiary’s Role: Complete and sign an original Form 1122, then submit it to the common parent corporation.
- Parent’s Role: Attach the signed Form 1122 (or an unsigned version with identical information) to the group’s consolidated Form 1120 return. Retain the original signed copy in your records.
- Submission Method: File electronically or by mail with the IRS, depending on the group’s e-filing requirements (mandatory for larger corporations).
No separate filing fee is required, and the form is attached directly to the consolidated return. For software-assisted preparation, tools like Thomson Reuters UltraTax CS can automate consolidated returns, including Form 1122 integration.
Step-by-Step Guide to Completing IRS Form 1122
Form 1122 is a straightforward, one-page document. Here’s how to fill it out based on the official layout:
- Tax Year Information: Enter the calendar year (e.g., “2025”) or specify the tax year beginning and ending dates (e.g., “January 1, 2025, and ending December 31, 2025”).
- Subsidiary Details: Provide the subsidiary’s name, Employer Identification Number (EIN), and full address (street, city, state, ZIP code).
- Parent Details: Enter the parent corporation’s name and EIN.
- Authorization and Consent Statement: This pre-printed section outlines the authorization. No edits are needed here.
- Signature: An authorized subsidiary officer must sign under penalties of perjury, including their title and date. The declaration confirms the form’s accuracy.
Key Tip: Ensure all information matches the consolidated return to avoid processing delays.
Important Instructions and Requirements
- Attachment Requirement: Form 1122 must be attached to the consolidated return for each new subsidiary.
- Binding Nature: By signing, the subsidiary consents to joint and several liability for the group’s taxes.
- Record-Keeping: Keep signed originals for at least three years, or longer if audits arise.
- Special Cases: If the parent fails to file, the form authorizes the IRS Commissioner to act on the subsidiary’s behalf.
For complex scenarios like corporate reorganizations, refer to IRS resources on consolidated returns.
Common Mistakes to Avoid When Filing IRS Form 1122
- Missing Signatures: Unsigned forms can invalidate the consent.
- Incorrect Tax Year: Mismatch with the consolidated return’s period.
- Forgetting Attachments: Ensure one Form 1122 per new subsidiary.
- Late Filing: Delays can lead to penalties or separate return requirements.
- Overlooking Updates: Though unchanged since 2003, always verify via IRS.gov for any 2026 revisions.
Frequently Asked Questions About IRS Form 1122
Do I need to file Form 1122 every year?
No, only for the first year the subsidiary joins the consolidated return.
What if a subsidiary leaves the group?
They may need to file separately thereafter, but no new Form 1122 is required unless rejoining.
Can foreign subsidiaries file Form 1122?
Generally no, unless they are treated as domestic for tax purposes. Consult IRS Publication 542.
Where can I get help with Form 1122?
Visit IRS.gov or contact a tax professional. Video tutorials are available on platforms like YouTube for visual guidance.
Is electronic filing required?
For consolidated returns, e-filing is often mandatory for corporations with assets over $10 million.
Conclusion
Mastering IRS Form 1122 is essential for corporations leveraging consolidated income tax returns to optimize their tax strategy. By providing clear authorization and consent, this form ensures seamless inclusion of subsidiaries while maintaining IRS compliance. Always use the latest version from trusted sources like IRS.gov, and consider professional advice for your specific situation.
For the most current details, download the form PDF at https://www.irs.gov/pub/irs-pdf/f1122.pdf and review related publications. Staying informed can help avoid costly errors and maximize tax efficiency in 2026 and beyond.