Tax Type
Corporation Income Tax
Description
Consolidated tax return
Topic
Returns/Payments/Records
Date Issued
12-03-1992
December 3, 1992
Re: Request for Ruling; Corporation Income Tax
Dear***********
This will reply to your letter of September 22, 1992 in which you request permission for**************(the "Taxpayer") to file a Virginia consolidated corporation income tax return.
FACTS
The Taxpayer files a separate Virginia corporation income tax return with the department. Effective September 3, 1991, the Taxpayer incorporated one of its divisions. You request permission for the Taxpayer and its subsidiary to file a consolidated Virginia income tax return for the taxable year ended June 30, 1992 and subsequent years.
RULING
Va. Code §58.1-442 allows corporations to elect to file returns on the basis of one of three filing statuses (separate, combined, or consolidated) regardless of how the corporations filed their federal income tax return. Once an affiliated group has made an election, the group may not change its filing status unless permission is granted by the Department of Taxation.
Virginia Regulation (VR) 630-3-442.A provides that the election of return filing status is made the first year two or more affiliated corporations are required to filed Virginia tax returns. In this case, the Taxpayer's initial election is for the taxable year ended June 30, 1992, the first year two or more affiliates are subject to Virginia income tax.
Accordingly, permission is granted to elect the consolidated filing basis for the Taxpayer and its subsidiary for the taxable year ended June 30, 1992 and subsequent years.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6529F
Rulings of the Tax Commissioner