Tax Type
Corporation Income Tax
Description
Extension of time for filing returns; Short period returns
Topic
Returns and Payments
Date Issued
04-14-1997
April 14, 1997
Re: Request for Ruling: Corporate Income Tax
Dear********************
This will respond to your letter of January 21, 1997, request guidance related to short period Virginia corporate income tax returns for*****************( the "Taxpayers") for the short period March 2, 1995 thru June 22, 1995.
FACTS
The Taxpayers file as part of a consolidated return for federal tax purposes and separately for Virginia purposes. On June 22, 1995, the Taxpayers were merged into a new affiliated group which required a short period return to be filed. You request clarification as to the due date of the short period return for Virginia tax purposes.
RULING
Code of Virginia § 58.1-440 requires that corporations use the same taxable year for Virginia tax purposes as for federal tax purposes. Accordingly, when a short period return is required for federal tax purposes, a similar return must be filed for Virginia tax purposes.
Code of Virginia § 58.1-441 requires Virginia income tax returns to be filed on or before the fifteenth day of the fourth month following the close of the taxable year, and such returns may be extended subject to the provisions of Code of Virginia § 58.1-453.
In the instant case, the return due date for the short period return would be as follows. The short year return for the taxable year ending June 22, 1995, would normally be due on October 15, 1995. However, Code of Virginia § 58.1-453 grants an extension of 30 days after the federal due date, as extended, or six months, whichever is later, provided a Virginia extension is filed. Because U.S. Treasury Regulation § 1.1502-76(c)(2) permits the Taxpayers to defer reporting their income until the federal consolidated return is due, the Virginia return for the taxable year ending June 22, 1995, will be extended until 30 days after the due date of the consolidated federal return, as it may be extended.
If you have any questions regarding this ruling, please contact ******** at **** .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12117P
Rulings of the Tax Commissioner