Tax Type
Corporation Income Tax
Description
Permission to file a consolidated return
Topic
Returns/Payments/Records
Date Issued
05-12-1988
May 12, 1988
Re: Virginia Code §58.1-442
Permission to File a Consolidated Return
Dear*****************
This is in reply to the company's letter of August 13, 1987, requesting permission for the above-referenced taxpayers to file a consolidated return. I apologize for the delay in responding.
Facts
The parent and subsidiary filed consolidated returns for the taxable years ending March 31, 1985, and March 31, 1986. The parent is a holding company for the subsidiary and is headquartered out of state. Both the parent and its subsidiary were registered to do business in Virginia in the two taxable years but only the subsidiary conducted business in the state during this period.
Neither the parent nor the subsidiary have transacted business in Virginia during the last two fiscal years and, at the company's request, both names were recently removed from the department's mailing list.
Determination
A consolidated return may not include corporations which would not be subject to Virginia income tax if separate returns were to be filed. Because the parent is not taxable in Virginia, the subsidiary must file separate amended returns for the taxable years ending March 31, 1985, and March 31, 1986.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner