4.901
Definition
FAR 4.901 defines "common parent" to ensure accurate tax identification and reporting for affiliated corporate groups in federal contracting.
Overview
FAR 4.901 provides the definition of "common parent" as it applies to Subpart 4.9, which deals with Taxpayer Identification Number (TIN) information in federal contracting. The term is specifically used to identify the corporate entity that owns or controls an affiliated group of corporations filing consolidated federal income tax returns, and of which the offeror is a member. This definition is crucial for determining reporting and compliance obligations related to tax identification and information submissions in government contracts.
Key Rules
- Definition of Common Parent
- The common parent is the corporate entity that owns or controls an affiliated group of corporations filing consolidated federal income tax returns, including the offeror.
Responsibilities
- Contracting Officers: Must ensure that the correct entity is identified as the common parent when collecting TIN information.
- Contractors: Must accurately identify and report their common parent when required by the solicitation or contract.
- Agencies: Oversee compliance with TIN reporting requirements and ensure proper identification of corporate structures.
Practical Implications
- This definition clarifies which entity should be reported as the common parent for tax and administrative purposes in federal contracts.
- Accurate identification helps prevent reporting errors and potential compliance issues related to tax information.
- Misidentification can lead to administrative delays or complications in contract award and administration.