Tax Type
Corporation Income Tax
Description
Request for Filing Exception
Topic
Accounting Periods and Methods
Reports
Returns and Payments
Date Issued
08-24-2001
August 24, 2001
RE: Ruling Request: Corporate Income Tax
Dear *****
This will respond to your letter requesting permission to file a full taxable year Virginia consolidated income tax return for a period that two short year consolidated returns are required for federal income tax purposes.
FACTS
In January 2001, two affiliated groups of corporations (AG1 and AG2) were merged under a newly formed common parent. Before the merger, both AG1 and AG2 filed consolidated Virginia income tax returns. Under federal regulations, AG2's parent is considered to be the survivor while AG1 is deemed to have joined a new consolidated group for federal income tax purposes, and thus AG1 is required to file a short year federal income tax return for less than a month. You request permission to file a single consolidated Virginia income tax return of the merged group of corporations for the 2001 taxable year, including the short year. RULING
Code of Virginia § 58.1-440 requires corporations to use the same taxable year for Virginia tax purposes as for federal tax purposes. Accordingly, when a short year return is required for federal tax purposes, a similar return must be filed for Virginia tax purposes. As such, AG1 would be required to file a short year Virginia income tax return for the same period for which a federal short year income tax return is filed.
Although I sympathize with your situation, the department does not have the authority, either statutorily or administratively, to permit AG1 and AG2 to file a single consolidated Virginia income tax return for the 2001 taxable year that would include AG1's short year. Accordingly, AG1's short year Virginia income tax return would be due on or before the fifteenth day of the fourth month following the close of the taxable year pursuant to Code of Virginia § 58.1-441 unless a Virginia extension is timely filed.
If you have any additional questions regarding this ruling, please don't hesitate to call ***** in the Office of Tax Policy at *****. .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/33559O
Rulings of the Tax Commissioner