Tax Type
Corporation Income Tax
Description
Permission to file a combined return
Topic
Returns/Payments/Records
Date Issued
07-31-1984
July 31, 1984
Re: Virginia Code § 58-151.07
Permission to File Combined Return
Dear **************
The parent corporation ***** filed consolidated income tax returns with its Virginia affiliates for taxable years 1981 and 1982. The consolidated returns were filed without first obtaining permission from the Department of Taxation to change from a separate method of filing to a consolidated method. They were filed under the name and federal employer's identification number of the parent corporation, which had no nexus in Virginia.
To rectify this situation, the parent corporation has requested permission for its Virginia affiliates as defined by Virginia Code § 58-151.081, to file a combined return. They have designated a prime affiliate under whose name and identification number the group will file. They have also requested permission to file amended 1981 and 1982 returns on a combined basis under the name and identification number of the newly designated prime affiliate.
Permission is hereby granted to file a combined return for the taxable year ending December 31, 1981, and thereafter which includes the affiliates subject to Virginia income tax upon the following conditions:
1. Schedules shall be filed with the combined return which contain all information which would be contained in a separate Virginia return for each eligible member of the affiliated group. See §§ 58-151.079 and 58-151.081.
2. In computing the Virginia taxable income of each eligible member of the affiliated group there shall be added to federal taxable income the amount of any net operating loss deduction or other deduction which has been recognized for Virginia income tax purposes and offset other income in a Virginia consolidated or combined return for other taxable years. See, for example, Federal Income Tax Regulation 1.1502-79.
Please attach a copy of this letter to the amended returns for taxable years 1981 and 1982.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner