Tax Type
Corporation Income Tax
Description
Returns of affiliated corporations; Request to change filing status.
Topic
Returns and Payments
Date Issued
12-10-1997
December 10, 1997
Re: Request for Ruling: Corporate Income Tax
Dear***************
This will reply to your letter in which you request permission for ***********(the "Taxpayers") to be included in the consolidated return of ****** (the "Parent" corporation of the affiliated group).
FACTS
The Parent corporation has been filing a consolidated return with an affiliated corporation since 1991. The Taxpayers were acquired by the Parent corporation on April 16, 1994, and were included in the Parent's consolidated return for the post-acquisition ending on December 31, 1994. You request permission for the Taxpayers to continue to be included in the consolidated return with the Parent 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 Parent corporation has filed a consolidated Virginia return since 1991, thereby electing a consolidated filing status for all subsequent returns. Because an election to file on a consolidated basis was made by the Parent corporation of the affiliated group, the Parent corporation need not request permission for the Taxpayers to join in the consolidated return. In fact, the Taxpayers are required to join in the Parent's consolidated return pursuant to Title 23 VAC 10-120-322 of the Virginia Administrative Code (copy enclosed).
If you have any questions regarding this ruling, please contact****of the Office of Tax Policy at ****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/13215P
Rulings of the Tax Commissioner