Tax Type
Corporation Income Tax
Description
Permission to file a combined return
Topic
Returns/Payments/Records
Date Issued
12-06-1984
- December 6, 1984
Re: § 58-151.079 - Permission to File Combined Returns
Dear ****
This is in reference to your letter of July 14, 1984 requesting permission for the Virginia affiliates as defined by Virginia Code § 58-151.081, to file a combined Virginia income tax return. All of the above corporations are eligible affiliates of the parent and utilize the same taxable year. The designated lead affiliate, S-3 and S-5 have filed separate Virginia income tax returns in prior years. The remaining subsidiary corporations either have just recently been qualified to do business in Virginia or have been inactive and have not been subject to Virginia income tax.
You are requesting that only part of an affiliated group, as defined by Virginia Code § 58-151.081, be allowed to file a combined return. This would mean that other members of this same affiliated group would be filing returns on some other basis, either separately or consolidated. Virginia Code § 58-151.079 clearly states that, "[c]orporations which are affiliated within the meaning of § 58-151.081 may, for any taxable year, file separate returns, file a combined return or file a consolidated return...." (Emphasis added.)
Since Virginia Code § 58-151.079 only allows an affiliated group to choose one of three options in filing its returns, we cannot allow any less than the entire affiliated group to be included in the election to file a combined or consolidated return.
Therefore, your request to file a combined return for the above mentioned affiliated corporations is denied.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner