122: Authorization & Consent of Subsidiary Corporation (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 122 records a subsidiary corporation’s authorization and consent to be included in its common parent corporation’s consolidated income tax return. The authorization applies to the indicated taxable year and succeeding taxable years unless the department consents to a
Who files this form
Each subsidiary in a federal consolidated group must complete a separate Arizona Form 122 when the common parent elects to file an Arizona consolidated return for the first time.
The form gives the subsidiary's consent to be included in that return. A current officer of the subsidiary must sign it, and it must be included with the first-year consolidated return.
What you'll need
To complete Form 122, have:
- The subsidiary's name, EIN, and mailing address.
- The common parent corporation's name and EIN.
- The applicable tax year: calendar year 2024 or the beginning and ending dates of a fiscal year beginning in 2024.
- The signing corporate officer's signature, signing date, title, printed name, and phone number with area code.
The filing must include a separate completed Form 122 for each subsidiary and the Arizona consolidated income tax return, Form 120.
How to file
- Type or print the information on a separate Form 122 for each subsidiary included in the federal affiliated group for the election year.
- Have a current officer of each subsidiary sign that subsidiary's form.
- Include all completed Forms 122 with Form 120 filed with the department for the first taxable year of the Arizona consolidated return.
The supplied form does not give a mailing address or e-filing instructions. It refers to A.R.S. § 43-947 and the Form 120 instructions for further information about the election.
Common mistakes
- Leaving out a subsidiary's consent. The common parent's election is effective only if accompanied by written consents signed by each member of the affiliated group. Complete a separate Form 122 for each subsidiary.
- Using the wrong signer. Each subsidiary's Form 122 must be signed by a current officer of that subsidiary.
- Forgetting the attachments. All completed Forms 122 must be included with Form 120 for the first taxable year a consolidated return is filed.
- Submitting without checking the information. The signing officer declares under penalties of perjury that they are authorized to sign and that the information is correct and complete to the best of their knowledge and belief.
Questions people ask
What does Form 122 authorize?
It authorizes the common parent corporation to include the subsidiary in a consolidated return for the tax year indicated.
Does the authorization apply to later years?
Yes. It applies to each succeeding taxable year unless the department consents to a change of filing method.
Who must sign the form?
A current officer of the subsidiary must sign. The officer declares that the subsidiary has authorized them to sign on its behalf.
Can one Form 122 cover all subsidiaries?
No. A separate Form 122 must be completed for each subsidiary included in the federal affiliated group for the year of the election.