Tax Type
Corporation Income Tax
Description
Returns of affiliated corporations; Consolidated return with lead corporation
Topic
Returns and Payments
Date Issued
07-15-1996
July 15, 1996
Re: Request for Ruling: Corporate Income Tax
Dear*********
This will reply to your letter of June 14, 1996, in which you request permission
for *********(the "Taxpayer") to be included in the consolidated return of*********(the "Lead" corporation for the affiliated group).
FACTS
The Lead corporation has been filing a consolidated return with an affiliated corporation since 1994. The Taxpayer was incorporated on June 12, 1995, and began its operations at this time. The Taxpayer has not filed a return for 1995 and requests permission to join in the Virginia consolidated return with the Lead corporation.
RULING
Code of Virginia § 58.1-442 allows corporations to elect to file returns as separate, combined, or consolidated entities regardless of how the corporations filed their federal income tax return.
The Lead corporation has filed a consolidated Virginia return since 1994, thereby electing a consolidated filing status for all subsequent returns. Because an election to file on a consolidated basis was made by the Lead corporation of the affiliated group, the Taxpayer need not request to join in the consolidated return. In fact, it is required to join in the Lead'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/11357P
Rulings of the Tax Commissioner