Tax Type
Corporation Income Tax
Description
Consolidated Return
Topic
Returns and Payments
Date Issued
12-21-1995
December 21, 1995
Re: Request for Ruling: Corporate Income Tax
Dear****************:
This will reply to your letter of October 31, 1995, in which you request permission for ********(the "Taxpayer) to be included in the consolidated return of **********(the "Parent").
FACTS
The Parent has been filing a consolidated Virginia return with several of its affiliates since 1981. The Taxpayer was incorporated on August 9, 1991, and remained inactive until the taxable year ended January 31, 1994, at which time it joined in the consolidated Virginia return with the Parent. Upon receiving nonfiler notices, the Taxpayer filed Virginia returns on a separate basis for 1991 through 1993. The Taxpayer now requests permission to join in the Virginia consolidated return with the Parent.
RULING
Code of Virginia § 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.
The Parent has filed a consolidated Virginia return since 1981, thereby electing a consolidated filing status for all subsequent returns. Because an election to file on a consolidated basis was made by the Parent's affiliated group, the Taxpayer need not request permission to join in the consolidated return. In fact, it is required to join in the Parent's consolidated return pursuant to Virginia Regulation (VR) 630-3-442 1.B.
If you have any questions regarding this ruling, please contact ***at**********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10515P
Rulings of the Tax Commissioner