Tax Type
Corporation Income Tax
Description
Affiliated corporations; Permission to file consolidated return
Topic
Returns/Payments/Records
Date Issued
10-10-1991
October 10, 1991
Re: Request for Ruling: Corporation Income Tax
Dear**********************
This will reply to your letter of June 20, 1991, in which you request permission, on behalf of*****************(the "Taxpayer"), to file a consolidated corporation income tax return for the affiliated group for the taxable year ended December 31. 1990 and for taxable years thereafter.
FACTS
The taxpayer is a holding company formed in 1988. However, it did not become active until 1990 when it acquired two separate corporations. The affiliated group has elected to file a consolidated federal income tax return, and the taxpayer now requests permission to file a consolidated Virginia income tax return.
The two acquired corporations filed separate Virginia income tax returns for the taxable years ended December 31, 1988 and December 31, 1989 and were not affiliated prior to acquisition by the taxpayer in 1990.
RULING
The information provided indicates that 1990 was the first year in which two or more affiliated corporations were required to file Virginia corporation income tax returns. Therefore, permission to file a consolidated return is granted for the taxable year ended December 31, 1990, if the consolidated return includes all affiliated corporations subject to Virginia income tax and if all corporations use the same taxable year. The return should be filed using the name and identification number of the parent. The consolidated return is to be filed in accordance with the requirements set forth in the Virginia Corporation Income Tax Regulations §630-3-442 (copy enclosed).
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5281F
Rulings of the Tax Commissioner