Alaska Administrative Code › Title 15 - Revenue › Chapter 20 - Alaska Net Income Tax › Article 2 - Corporate Net Income Tax; Administration and Credits › 15 AAC 20.100 - Returns

Current through May 31, 2024
(a) Each taxpayer shall file a return except
				that two or more taxpayers that engage in a unitary business and that join in
				filing a consolidated federal return shall file a consolidated Alaska
				return.
(b) Two or more taxpayers
				that do not join in a consolidated federal return may file a consolidated
				Alaska return if they are engaged in a unitary business and are eligible to
				file a consolidated federal return. For purposes of this subsection, the
				provisions of subsections (b)(3), (b)(4), or (b)(7) of Internal Revenue Code
				section 1504  (26 U.S.C
				1504(b)(3), (b)(4), or
				(b)(7)) that disqualify a corporation from the definition of "includible
				corporation" in Internal Revenue Code section 1504(b) (26 U.S.C.
				1504(b))  for the purpose of
				filing a consolidated federal tax return do not apply to disqualify a
				corporation from joining in filing a consolidated Alaska return under AS 43.20
				and this chapter.
(c) If, under
				this section, two or more taxpayers file a consolidated Alaska return, all
				includible taxpayers engaged in the unitary business shall join in the
				consolidated Alaska return.
(d)
				Taxpayers that join in filing a consolidated Alaska return under this section
				shall apply Internal Revenue Code sections 1502 - 1552 (26 U.S.C.
				1502 -
				26 U.S.C. 1552) to consolidate
				taxable income and determine tax payable. In a consolidated Alaska return the
				separate taxable income of each taxpayer shall be combined and the consolidated
				group's net operating loss, net capital gain, section 1231 loss, charitable
				contribution, and dividends received deduction shall be determined on a
				consolidated basis.
(e) For the
				purpose of illustrating the making of a consolidated Alaska return under (d) of
				this section, the following example is offered:
EXAMPLE
Taxpayer A and Taxpayer B join in the filing of a
				  consolidated Alaska return. The unitary business realized a business net
				  capital gain of $100, made charitable contributions of $40, and generated
				  apportionable business income (excluding capital gains and charitable
				  contributions) of $200. Taxpayer A realized a $25 non-business capital loss
				  allocable to Alaska. The apportionment factors of Taxpayers A and B are 10
				  percent and 15 percent respectively. The individual apportioned and allocated
				  income or loss of Taxpayer A and Taxpayer B under the combined reporting method
				  are as follows:
Ordinary Income 2030 Capital Gain or (Loss) (15) 15Excess
				  Capital Loss 150 Charitable Contributions 46 Contribution Deduction 25 Taxable
				  Income1840
In the consolidated return of Taxpayer A and Taxpayer B, the
				  net capital gain or loss and charitable contribution deduction are consolidated
				  items determined on a consolidated basis:
A B Com -
bined Adjust -
ments Consoli -
dated Separate Taxable
Income 20305050 Capital Gain or
(Loss) (15) 1500 Contributions 4610 (5) 5 Taxable Income
				  40545 Contributions
Carry forward 5 Excess Capital
Loss 0
(f) A taxpayer shall determine its charitable
				contribution limitation by applying Internal Revenue Code section 170 (26 U.S.C.
				170)  based upon its Alaska taxable income.
				The charitable contributions subject to limitation for a taxpayer required to
				use the combined method of reporting are the current charitable contributions
				of the unitary business before the federal Internal Revenue Code section 170(b)
				 (26 U.S.C.
				170(b))  limitation,
				multiplied by its apportionment factor plus the Alaska charitable contribution
				carryforward of the taxpayer, if any. For purposes of determining the education
				credit under
				AS
				43.20.014, qualified contributions are
				limited to charitable contributions as defined in Internal Revenue Code section
				170(c)  (26 U.S.C.
				170(c))  that also meet the
				requirements of
				AS
				43.20.014. A taxpayer may not deduct any part
				of qualified contributions upon which a credit claimed under
				AS
				43.20.014 is based.
(g) For purposes of illustrating the
				determination of the taxpayer's Alaska charitable contribution limitation and
				deduction under (f) of this section, the following example is
				offered:
EXAMPLE
Taxpayer A made a $100 contribution that qualified for the
				  Alaska education credit under
				  AS
				  43.20.014 and generated a $50 education
				  credit. Taxpayer A made $500 of other charitable contributions during the tax
				  year. The $600 of contributions may not be deducted in the determination of
				  apportionable income. None of Taxpayer A's contributions were currently
				  deductible in its federal return as a result of the limitation imposed by
				  Internal Revenue Code section 170 (26 U.S.C.
				  170). Taxpayer A has an Alaska apportionment
				  factor of 15 percent and its apportioned and allocated Alaska income measured
				  under Internal Revenue Code section 170(b) (26 U.S.C.
				  170(b))  is $900. Taxpayer
				  A's charitable contribution limitation is $90 ($900 X 10 percent) and its
				  entire $75 ($500 X 15 percent) of apportioned charitable contributions may be
				  deducted in determining its taxable income. No part of taxpayer A's $100
				  contribution applied to generate its education credit under
				  AS
				  43.20.014 may be deducted.
(h) A taxpayer shall determine its dividends
				received deduction by applying Internal Revenue Code sections 243, 244, 246,
				246A, and 247  (26 U.S.C.
				243,
				244,
				246,
				246 A, and 247) to dividends
				included in its taxable income as if the dividend payor and payee were domestic
				corporations. A taxpayer shall apply the limitation imposed by Internal Revenue
				Code section 246(b)  (26
				U.S.C 246(b))  by reference
				to its Alaska taxable income. A taxpayer using the combined reporting method
				shall apply this subsection only to its dividend income as apportioned and
				allocated to Alaska. A dividends received deduction shall not be allowed with
				respect to a dividend eliminated or excluded from income under
				15 AAC 20.300(n)
				or AS
				43.20.145(b), or gain
				treated as a dividend for federal tax purposes under Internal Revenue Code
				section 1248  (26 U.S.C.
				1248).
(i) The sum of a taxpayer's apportioned and
				allocated income or loss, if a net loss, is the taxpayer's net operating loss.
				A taxpayer shall carry forward or carry back its net operating loss in
				accordance with the Internal Revenue Code.
(j) A taxpayer that is required to file a
				federal return shall submit a copy of its complete federal return with the
				return required under AS 43.20; the Alaska return is not complete unless the
				complete federal return is submitted. A taxpayer that joins in the filing of a
				consolidated federal return shall submit a copy of the consolidated federal
				return; a pro forma separate company return does not establish a complete
				return. A taxpayer may comply with this subsection by submitting, in lieu of
				the complete federal return, only the portions of the federal return that are
				specified by the department in the written instructions for the return required
				under AS 43.20.
In 2012 the revisor of statutes, acting under
					 AS
					 01.05.031, renumbered former AS 43.20.072 as
					 AS
					 43.20.144 and former AS 43.20.073 as
					 AS
					 43.20.145. As of Register 204 (January 2013),
					 the regulations attorney made a conforming technical revision to
					 15 AAC 20.100(h),
					 so that the cross-reference to former43.20.073(b) now refers to the renumbered
					 statute, AS 43.20.145(b).
					 In addition, the regulations attorney made conforming technical revisions to
					 the authority citation that follows
					 15 AAC 20.100, so that citations
					 to former AS 43.20.072 and 43.20.073 now refer to the renumbered statutes,
					 AS
					 43.20.144 and
					 43.20.145.
Authority:
AS
					 43.05.080
AS 43.20.030
AS 43.20.031
AS 43.20.144
AS
					 43.20.145