Tax Type
Corporation Income Tax
Description
Affiliated corporations; Request to file combined return
Topic
Returns/Payments/Records
Date Issued
03-17-1993
March 17, 1993
Re: Ruling Request: Corporation Income Taxes
Dear***************
This will reply to your letter dated September 23, 1992, requesting permission for the *************(the "taxpayer") and affiliates to file a combined income tax return.
FACTS
The taxpayer and affiliates have filed separate Virginia returns using the three factor apportionment formula for several years, and have participated in a federal consolidated income tax return. The taxpayer requested permission to change from separate filing to consolidated filing, concurrent with the filing of their 1990 income tax return. Permission for this change was denied, with the instructions that the taxpayer refile their 1990 income tax return on the separate basis. The taxpayer now requests permission to change to filing returns on a combined basis.
DETERMINATION
Virginia Regulation (VR) 630-3-442.E provides that changes between separate and combined filing are generally allowed because the allocation and apportionment relationship among the members of the affiliated group is equivalent, regardless of which of these two filing methods is selected
Since the request to change was filed with the 1990 income tax return, permission to change from separate to combined filing is granted, beginning with the 1990 taxable year and thereafter. Therefore, the 1990 return may be refiled using the combined basis. In order to change from the combined filing method, permission must be granted by the Department.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6431G
Rulings of the Tax Commissioner