722: Election to File Consolidated Kentucky Corporation Income and Limited Liability Entity Tax Return (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 722 records an affiliated group's election to file a consolidated corporation income and limited liability entity tax return. It identifies the group and common parent corporation and records the election period and an authorized officer's signature.
Who files this form
Form 722 is for Form 720 filers choosing to file a consolidated Kentucky corporation income and limited liability entity tax (LLET) return. The common parent corporation makes the election on behalf of all members of the affiliated group.
The consolidated return must include all corporations in the affiliated group as defined by Internal Revenue Code Section 1504(a) and related regulations, except corporations exempt from Kentucky corporate income tax under KRS 141.040.
What you'll need
Have the following information ready to complete Form 722:
- Affiliated group name, including the common parent corporation and subsidiaries.
- Address and telephone number.
- Federal identification number.
- Common parent’s Corporation/LLET account number.
- Beginning and ending month and year of the election period.
- Authorized officer’s signature, signing date, printed name, and title.
Keep a copy of the Form 722 completed for the first year. You must attach that copy to each return filed during the binding election period.
How to file
Complete Form 722 and attach it to the return for the first taxable year of the election. The election must be made on or before that return’s due date or extended due date. Attach a copy of the first-year Form 722 to each subsequent return during the election period.
The form must be signed by an authorized officer of the common parent corporation: the president, vice president, secretary, treasurer, assistant secretary, assistant treasurer, or chief accounting officer.
Complete and submit a new Form 722 for each new 48-month election period. The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Attaching the form to a late return. The form warns that attaching it to an untimely filed return does not create a valid election.
- Entering only one year as the election period. Enter the period covering the first taxable year of the election through the taxable year when it expires, not just one year.
- Leaving the form off later returns. A copy of the first-year Form 722 must be attached to each return filed during the binding 48-month election period.
- Reusing the old election for a new period. A new Form 722 must be completed and submitted for each new 48-month election period.
Questions people ask
Must the group file a federal consolidated return to make this election?
No. The election may be made whether or not a federal consolidated return is filed.
How long is the election binding?
It is binding and irrevocable from the first month of the first taxable year of the election through the end of the taxable year in which the 48th consecutive month expires.
How is the affiliated group treated after the election?
The group is treated as a single corporation for all purposes.
Who is responsible for the income tax liability?
Each member of the affiliated group is jointly and severally liable for the income tax liability computed on the consolidated return.