Each C corporation must file its own separate tax return with the Internal Revenue Service (IRS). The parent and subsidiary do not consolidate their financials for tax purposes. What is the requirement for separate tax filings for C corporations?
1) Each C corporation must file a joint tax return with the parent company.
2) The parent and subsidiary must consolidate their financials for tax purposes.
3) Each C corporation must file its own separate tax return with the IRS.
4) The parent and subsidiary can choose whether to file separate or joint tax returns.