Tax Type
Corporation Income Tax
Description
Consolidated return; New affiliates
Topic
Returns/Payments/Records
Date Issued
04-14-1993
April 14, 1993
Re: Ruling Request: Permission to File Consolidated Return
Dear*************
This will reply to your letter dated February 16, 1993, requesting********** (the "Taxpayer") to be part of a 1992 consolidated Virginia return.
FACTS
The Taxpayer, a corporation formed in 1992, has a sales office in Virginia. The Taxpayer is part of an affiliated group which files both a consolidated Virginia and federal return.
DETERMINATION
Virginia Code §58.1-442 allows corporations to elect to file returns on the basis of one of three (3) 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 630-3-442 (copy enclosed) provides that once an affiliated group has elected its Virginia filing status, subsequent members of the group, becoming subject to Virginia tax, must conform to this election. As such, it is not necessary for the Taxpayer to request permission to join in the consolidated Virginia return. Rather, the Taxpayer required to join in the consolidated return by virtue of Virginia law.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6833L
Rulings of the Tax Commissioner