Common use of Allocation Procedures for Federal Income Tax Liabilities Clause in Contracts

Allocation Procedures for Federal Income Tax Liabilities. A. General Rule Step 1 - The federal consolidated tax liability of the Group (not including any liability for alternative minimum tax) shall be apportioned among the Group Members in accordance with the ratio that each Group Member's separate taxable income bears to the sum of the separate taxable incomes of all Group Members having taxable income.

Allocation Procedures for Federal Income Tax Liabilities. A. General Rule Step 1 - The federal consolidated tax liability of the Group (not including any liability for alternative minimum tax) shall be apportioned among the Group Members in accordance with the ratio that each Group Member's separate taxable income liability bears to the sum of the separate taxable incomes liabilities of all Group Members having taxable income.