Tax Type
Corporation Income Tax
Description
Permission to file a consolidated return denied
Topic
Returns/Payments/Records
Date Issued
11-29-1985
November 29, 1985
Re: Virginia Code Section 58.1-442
Permission to File a Consolidated Return
Dear ****
This will reply to your letter of August 27, 1985.
By letter dated July 26, 1983, the above-referenced taxpayers were granted permission to file a combined return, and returns were filed on that basis for 1981, 1982 and 1983. Now permission is sought for the above-referenced taxpayers to file amended returns for the years 1981 through 1984 on a consolidated basis.
In a consolidated return inter-affiliate transactions are eliminated and the apportionment factors of multi-state corporations. are combined. As a result, the income subject to Virginia income tax on a consolidated return may be significantly different than the total shown on separate returns, especially if any of the affiliates do business in more than one state. Section 630-442 E.l. of the Virginia Corporation Income Tax Regulations provides that permission to change to or from filing consolidated returns will generally not be granted. Thus, permission is denied to file amended returns for 1981 through 1984 on a consolidated basis.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner