Tax Type
Corporation Income Tax
Description
Alternate method of allocation and apportionment; Separate accounting
Topic
Allocation and Apportionment
Date Issued
12-13-1990
December 13, 1990
Dear ****
This is in response to your letter of October 23, 1990, in which you applied for permission to use an alternative method of allocation and apportionment for * * * (the Taxpayer) for the fiscal year ending June 30, 1990, and after.
FACTS
The Taxpayer's central warehouse and main office is located in another state. Its facilities in Virginia are for retail sales of home furnishings. The Taxpayer's accounting records detail income and expenses on a per state basis, including an allocation of overhead items to each location. You request permission to compute the Taxpayer's Virginia income tax using the separate accounting method.
DETERMINATION
The policies which apply to requests for an alternative method under § 58.1-421 are well established. See Virginia Regulation VR 630-3-421 and PD 86-184 (9/18/86). After considering the facts set forth, you have not demonstrated by clear and cogent evidence that the statutory method is unconstitutional or inapplicable as applied to your situation.
Accordingly, permission to use an alternative method of allocation and apportionment is denied.
Sincerely
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner