Tax Type
Corporation Income Tax
Description
Returns of affiliated corporations; Corporation and newly acquired subsidiary eligible to file consolidated return.
Topic
Returns and Payments
Date Issued
06-30-1998
June 30, 1998
Dear***********:
This will respond to your letter in which you request permission for two new affiliates to be included in the consolidated return of ***** (the ``Taxpayer').
FACTS
In the first full year the Taxpayer and two of its affiliates became subject to Virginia income tax, an election to file a Virginia consolidated return with two affiliated corporations was made. The Taxpayer requests that it be allowed to add two new affiliates it recently acquired to its consolidated return.
RULING
Code of Virginia Sec. 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 Taxpayer has previously elected to file a consolidated return, thereby electing a consolidated filing status for all subsequent returns. Because an election to file on a consolidated basis was made by the Taxpayer, any new affiliates that become subject to the Virginia corporate income tax are required to join in the Taxpayer's consolidated return pursuant to Title 23 of the Virginia Administrative Code VAC 10-120-322, copy enclosed.
If you have any questions regarding this ruling, please contact ***** of the Office of Tax Policy at *****.
Dear***********:
This will respond to your letter in which you request permission for two new affiliates to be included in the consolidated return of ***** (the ``Taxpayer').
FACTS
In the first full year the Taxpayer and two of its affiliates became subject to Virginia income tax, an election to file a Virginia consolidated return with two affiliated corporations was made. The Taxpayer requests that it be allowed to add two new affiliates it recently acquired to its consolidated return.
RULING
Code of Virginia Sec. 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 Taxpayer has previously elected to file a consolidated return, thereby electing a consolidated filing status for all subsequent returns. Because an election to file on a consolidated basis was made by the Taxpayer, any new affiliates that become subject to the Virginia corporate income tax are required to join in the Taxpayer's consolidated return pursuant to Title 23 of the Virginia Administrative Code VAC 10-120-322, copy enclosed.
If you have any questions regarding this ruling, please contact ***** of the Office of Tax Policy at *****.
Rulings of the Tax Commissioner