Tax Type
Corporation Income Tax
Description
Consolidated group
Topic
Returns/Payments/Records
Date Issued
06-01-1992
June 1, 1992
Re: Ruling Request: Corporate Income Taxes
Dear ************
This will reply to your letter dated September 11, 1991 in which you request permission for * * * (the "Taxpayer") to continue filing as a Virginia consolidated group.
FACTS
The taxpayer has filed both federal and Virginia consolidated returns since its inception. After some communication with the department, the taxpayer felt it necessary to request permission to continue filing on the Virginia consolidated basis.
RULING
In the first year two or more affiliated corporations are subject to Virginia tax, the group may elect to file consolidated returns. All subsequent returns must be filed on the elected basis unless permission to change is granted from the department. See Virginia Regulation (VR) 630-3-442.
The filing of the first return is deemed to constitute the election for filing method by a Virginia affiliated group. The only time that permission has to be granted by the department with respect to a filing method is when a change in filing method is requested.
It would appear from the facts presented that the taxpayer's affiliated group properly elected consolidated filing in its initial year of Virginia taxability. Accordingly, the group may continue to file on a Virginia consolidated basis.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner