California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.6 - Administration of Franchise and Income Tax › Subchapter 4 - Payments and Assessments › Article 7 - Penalties and Additions to Tax › Section 19142 - Additions to Tax when Combined or Consolidated Returns Are Filed

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except in the
					 case of an affiliated group as defined in Section
					 23361, any addition to the tax
					 under Section
					 19142 for underpayment of
					 estimated amount of the tax of a member of a group owned or controlled by the
					 same interests as defined in Section
					 25105 which files a combined
					 report for the income year shall be determined by apportioning the tax shown on
					 the combined report to the several members of the group. The method of
					 apportionment must be based on the ratio which the California factors bear to
					 the total combined factors of the group. In the application of Section
					 19147(a) with
					 respect to a member of the group which was included in a combined report for
					 the year, whether or not such member is included in a combined report for the
					 preceding income year, the "tax shown on the return" for the preceding income
					 year shall be the portion of the tax shown on such combined report determined
					 by apportioning such tax to the several members of the group by the procedure
					 described above. In the application of Section
					 19147(b) if the
					 taxpayer was included in a combined report for the preceding income year, the
					 "facts shown on the return" shall be the facts shown on the combined report of
					 the group (whether of this or another group) for the preceding income year
					 attributable to such corporation.
(b) In the case of an affiliated group for
					 which a consolidated or combined report or return is filed, any addition to the
					 tax provided by Section
					 19142 shall be determined by
					 reference to the tax shown on the consolidated or combined report or
					 return.
(c) In the application of
					 Section 19147(a) with
					 respect to the affiliated group, described in subsection (b) of this
					 regulation, the "tax shown on the return" shall be--
(1) If the group filed a consolidated or
					 combined report or return for the preceding income year, the tax shown on such
					 return, or
(2) If the group did not
					 file a consolidated or combined report or return for the preceding income year,
					 the aggregate of the taxes of the several members of the group shown on any
					 separate returns of such taxpayers for the preceding income year, plus the tax
					 shown on a consolidated or combined report or return for the preceding income
					 year attributable to any member of the group which joined in a consolidated or
					 combined return with another affiliated group for such preceding income year.
					 The tax attributable to any such taxpayer which joined in a consolidated or
					 combined report or return shall be determined by apportioning the tax shown on
					 such consolidated or combined report or return in accordance with the procedure
					 described in subsection (a) of this regulation.
(3) In the case of the tax imposed by Article
					 3 (commencing with Section
					 23181) of Chapter 2 of Part 11,
					 the tax is the amount of tax shown on the return for the income year plus or
					 minus the amount of tax payable or refundable, respectively, as shown on the
					 notice of determination mailed by the Franchise Tax Board pursuant to Section
					 23186 a for the income
					 year.