Insurance Returns: Subgroup Consolidation
1120 Subgroup Subconsolidation
The topmost 1120 subgroup Consolidation is consolidated in a Nonlife subgroup or top consolidation (topcon) and is then included in the e-file. You can have many lower 1120 subgroups included (there is no limit) in the topmost 1120 subgroup, but they are not included in the e-file. Only the one topmost 1120 subgroup is allowed in e-file. All entities in the What to Consolidate listing must be of the 1120 return type. Do not mix entity types within a subgroup.
Types of 1120 Subgroup Subconsolidations
The 1120 subgroup can have any of the following structures.
If the entities share the same tax ID number, create a Divcon. The returns listed are divisions. The tax ID is on the Divcon.
| Divcon Return | |
|---|---|
| Parent Slot | Division |
| Elimination Slot | Subgroup Elimination |
| Subsidiary Slot | Division |
If there are several 1120 subsidiaries and 1120 subgroups to be consolidated together:
| 1120 subgroup | |
|---|---|
| Parent Slot | 1120 Subsidiary or Subgroup |
| Elimination Slot | 1120 Subgroup Elimination |
| Subsidiary Slot(s) | 1120 Subsidiary or Subgroup |
If there are several 1120 subsidiaries to be consolidated together:
| 1120 subgroup | |
|---|---|
| Parent Slot | 1120 Subsidiary |
| Elimination Slot | 1120 Subgroup Elimination |
| Subsidiary Slot(s) | 1120 Subsidiary |
If there is ONLY one 1120 subsidiary in the entire consolidation:
| 1120 subgroup | |
|---|---|
| Parent Slot | 1120 Subsidiary |
| Elimination Slot | 1120 Subgroup Elimination |
| Subsidiary Slot | |
Steps to Complete an 1120 Topmost Subgroup
- Create the 1120 topmost 1120 subgroup return.
- Go to Organizer > Insurance Consolidations > 1120 Subgroup Consolidation Wizard > Step 2 - What to Consolidate.
- Enter the applicable parent, elimination, and subsidiaries according to the above structures.
- Compute all subsidiaries if necessary. If you make any changes to the lower entities, you must recompute them and reconsolidate.
- Consolidate.
1120-PC Subgroup Subconsolidation
ALL 1120-PC returns must be combined in an 1120-PC Subgroup Consolidation. Even if there is only ONE 1120-PC individual company in the entire consolidation, a subgroup is required.
The topmost 1120-PC Subgroup Consolidation is consolidated into a Nonlife subgroup or top consolidation. You can have many lower 1120-PC subgroups included (there is no limit) in the topmost 1120-PC subgroup, but they are not included in the e-file per the IRS schema rules. Only the one topmost 1120-PC subgroup is allowed in the e-file. All entities in the What to Consolidate listing must be of the 1120-PC-type of return. Do not mix entity types in a subgroup subconsolidation.
Types of 1120-PC Subgroup Subconsolidations
The 1120-PC subgroup can have the following three examples in the What to Consolidate listing.
If your parent is in this group and a 1120-PC, your NL or LNL top consolidation must be a 1120-PC and is not allowed to e-file yet.
If there are several 1120-PC subsidiaries and/or subgroups to be consolidated together:
| 1120-PC Subgroup | |
|---|---|
| Parent Slot 1120-PC | Subsidiary or Subgroup |
| Elimination Slot 1120 | Subgroup Elimination |
| Subsidiary Slot(s) 1120-PC | Subsidiary/or Subgroup |
If there are several 1120-PC subsidiaries to be consolidated together:
| 1120-PC Subgroup | |
|---|---|
| Parent Slot 1120 | PC Subsidiary |
| Elimination Slot 1120 | PC Subgroup Elimination |
| Subsidiary Slot(s) 1120 | PC Subsidiary |
If there is ONLY one 1120-PC subsidiary in the entire consolidation:
| 1120-PC Subgroup | |
|---|---|
| Parent Slot | 1120-PC Subsidiary |
| Elimination Slot 1120 | 1120-PC Subgroup Elimination |
| Subsidiary Slot | Blank |
Steps to Complete an 1120-PC Topmost Subgroup
- Create the 1120-PC topmost 1120 subgroup return.
- Go to Organizer > Insurance Consolidations > 1120-PC subgroup Consolidation Wizard > Step 3 - What to Consolidate.
- Enter the applicable parent, elimination, and subsidiaries according to the above structures.
- Compute all subsidiaries if necessary. If you make any changes to the lower entities, you must recompute and reconsolidate.
- Consolidate.
1120-L Subgroup Subconsolidation
ALL 1120-L returns must be combined in an 1120-L subgroup Consolidation. Even if there is only ONE 1120-L individual company in the entire consolidation, a subgroup is required for the tax product. The topmost 1120-L subgroup consolidation is consolidated with a Nonlife subgroup into the Life Nonlife topcon. You can have many lower 1120-L subgroups included (there is no limit) in the topmost 1120-L subgroup, but they are not in the e-file. Only the topmost 1120-L subgroup is allowed in the e-file. All entities in the What to Consolidate listing must be of the 1120-L return type. Do not mix entity types.
Types of 1120-L Subgroup Subconsolidation Structures
The 1120-L subgroup can have any of the following structures. If your parent is in this group and is an 1120-L return type, then your LNL top consolidation must be an 1120-L return type and is not allowed to e-file yet.
If the entities share the same tax ID number, create a Divcon. The returns listed are Divisions. This is the case for the Life Annual Statement return and the Separate Accounts statement because they usually share the same tax ID number. The tax ID is on the Divcon.
|
Divcon Return |
|
|---|---|
| Parent Slot | Division |
| Elimination Slot |
Subgroup Elimination |
| Subsidiary Slot |
Division |
If there are several 1120-L subsidiaries and 1120-L subgroups to be consolidated together:
|
1120-L Subgroup |
|
|---|---|
| Parent Slot | 1120-L Subsidiary or Subgroup |
| Elimination Slot |
1120-L Subgroup Elimination |
| Subsidiary Slot(s) |
1120-L Subsidiary or Subgroup |
If there are several 1120-L subsidiaries to be consolidated together:
|
1120-L Subgroup |
|
|---|---|
| Parent Slot | 1120-L Subsidiary |
| Elimination Slot |
1120-L Subgroup Elimination |
| Subsidiary Slot(s) |
1120-L Subsidiary |
If there is ONLY one 1120-L subsidiary in the entire consolidation:
|
1120-L Subgroup |
|
|---|---|
| Parent Slot | 1120-L Subsidiary |
| Elimination Slot |
1120-L Subgroup Elimination |
| Subsidiary Slot |
Blank |
Steps to Complete an 1120-L Topmost Subgroup
- Create the 1120-L topmost 1120-L subgroup return.
- Go to Organizer > Insurance Consolidations > 1120-L subgroup Consolidation Wizard > Step 3 - What to Consolidate.
- Enter the applicable parent, elimination, and subsidiaries according to the above structures.
- Compute all subsidiaries if necessary. If you make any changes to the lower entities, you must recompute and reconsolidate.
- Consolidate.
Subgroup Top Consolidation
This is NOT a Mixed Group filing. This consolidation contains entities that are all of one type of return. If multiple 1120-PCs (and no 1120 or 1120-L returns) file to the IRS together, your top consolidation is an 1120-PC subgroup top consolidation. If multiple 1120-Ls (and no 1120 or 1120-PC returns) file to the IRS together, your top consolidation is an 1120-L subgroup top consolidation.
While this return resembles a subgroup Subconsolidation, it is an Insurance top consolidation that can file to the IRS by print only. The IRS does not yet accept e-file for this return type.
Types of Subgroup Top Consolidation Structures
These are the following possible structures for a subgroup top consolidation.
If all entities in the consolidation are 1120-PCs, then the example would be:
| Parent Slot | 1120-PC Subgroup/Parent |
| Elimination Slot | 1120-PC Elimination |
| Subsidiary Slot | 1120-PC Subgroup/Parent |
If all entities in the consolidation are 1120-Ls, then the example would be:
| Parent Slot | 1120-L Subgroup/Parent |
| Elimination Slot | 1120-L Elimination |
| Subsidiary Slot | 1120-L Subgroup/Parent |
1120/oit_ins_consol_2.htm/TY2021
Last Modified: 03/20/2020
Last System Build: 01/31/2023
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