Tax Type
Corporation Income Tax
Description
Consolidated filing request
Topic
Returns/Payments/Records
Date Issued
07-12-1993
July 12, 1993
Re: Ruling Request: Permission to File Consolidated Return
Dear***********
This will reply to your letter dated April 14, 1993, in which you requested permission for three subsidiaries, ********(the "Subsidiaries"), to file a consolidated Virginia income tax
return for the taxable year ended December 31, 1992.
FACTS
In 1992, the parent corporation acquired 100% ownership in two of the Subsidiaries. The third Subsidiary had previously filed a separate return for Virginia and federal purposes. The Subsidiaries
are affiliated as defined by Virginia Code §58.1-302.
RULING
In the first year two or more affiliated corporations are subject to Virginia tax, the group may elect to file either separate, consolidated or combined returns. 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 provides that the election is made upon the filing of the first return for a 12 month taxable year beginning on or after the date of organization or acquisition of the
corporations creating the affiliated group.
As a result of the acquisition of two of the Subsidiaries, 1992 is the initial election year for the Subsidiaries because it is the first year two or more affiliates are subject to Virginia income tax.
Accordingly, the Subsidiaries may elect consolidated filing status.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6932L
Rulings of the Tax Commissioner