reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-160 - Property factor

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. The property factor is a fraction. The
				numerator is the average value of real and tangible personal property which is
				used in Virginia. The denominator is the average value of real and tangible
				personal property which is used everywhere. Property shall be included in the
				property factor if it is:
a. owned or rented
				by taxpayer, and
b. used by
				taxpayer, and
c. effectively
				connected with the taxpayer's trade or business within the United States and
				the income from such trade or business is includible in both Virginia taxable
				income and federal taxable income.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-170 - Valuation of property owned or rented

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. The taxpayer shall be
				consistent in the valuation of property and in excluding or including property
				in the property factor in filing returns or reports to all income tax states to
				which the taxpayer reports to the extent that the laws of the other states are
				similar to Virginia's laws. In the event the taxpayer is not consistent in its
				reporting it shall disclose in its return to Virginia the nature and extent of
				the inconsistency.
B. Owned
				property.
1. Property owned by the taxpayer
				shall be valued at its original cost. As a general rule, "original cost" is
				deemed to be the basis of the property for federal income tax purposes at the
				time of acquisition by the corporation and adjusted by subsequent capital
				additions and improvements thereto and partial disposition thereof, by reason
				of sale, exchange, abandonment, etc. The original cost shall not be reduced by
				amounts allowed or allowable for depreciation, amortization, depletion,
				accelerated cost recovery or similar allowances.
2. Inventory of stock of goods shall be
				included in the factor in accordance with the valuation method used for federal
				income tax purposes.
3. Property
				acquired by gift or inheritance shall be included in the property factor at its
				basis for determining depreciation for federal income tax purposes.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-180 - Average value of property

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. The average value of property shall be
				determined by averaging the value of the beginning and end of the taxable year,
				but the department may require the averaging of monthly values during the
				taxable year if reasonably required to reflect properly the average value of
				the corporation's property.
2.
				Averaging by monthly values may be elected by the taxpayer and will generally
				be required by the Department if there is substantial fluctuation in the values
				of the property during the taxable year or where a substantial amount of
				property is acquired after the beginning of the taxable year or disposed of
				before the end of the taxable year. Taxpayer may elect to average by monthly
				values whether or not the department requires it.
3. Substantial fluctuations in the values of
				property will be deemed to exist if the value for any month is outside a range
				of values which is the average of the beginning and ending value plus or minus
				25%.
4. The taxpayer may elect to
				compute the average value of rental property by one of the following methods:
a. the net annual rental rate of property
				rented at the beginning and end of the taxable year may be averaged and
				multiplied by eight, or,
b. the net
				annual rental rate of property rented at the beginning of each month may be
				averaged and multiplied by eight, or
c. the total rent paid for all property for
				the taxable year may be multiplied by eight. This method is deemed equivalent
				to monthly averaging, or
d. the
				Department may require a taxpayer to determine the average value of property by
				using method (b) and (c).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-190 - Payroll factor

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
				The payroll factor is a fraction, the numerator of which is the total amount
				paid or accrued within Virginia during the tax period by the corporation for
				compensation, and the denominator of which is the total compensation paid or
				accrued everywhere during the tax period.
B. Compensation.
1. Compensation, as defined in Va. Code
				§ 58.1-302, shall be included in the payroll factor if it is effectively
				connected with the taxpayer's trade or business within the United States and
				the income from such trade or business is includible in both Virginia taxable
				income and federal taxable income.
2. The denominator of the payroll factor is
				the total compensation paid everywhere during the tax period. Accordingly,
				compensation paid to employees whose services are performed entirely in a state
				where the taxpayer is exempt from taxation, for example, by federal law 15 USC
				§§ 381 - 384, is included in the denominator of the payroll factor.
				However, compensation paid to employees whose services are connected with
				foreign source income as defined in Va. Code § 58.1-302 is excluded from
				the denominator because such income is not effectively connected with the
				taxpayer's trade or business within the United States and such income is not
				includible in Virginia taxable income.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-200 - When compensation deemed paid in this Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. Compensation is paid in
				Virginia if any one of the following tests, applied consecutively, is met:
1. The employee's service is performed
				entirely within Virginia.
2. The
				employee's service is performed both within and without Virginia, but the
				service performed without Virginia is incidental to the employee's service
				within Virginia.
3. If the
				employee's service is performed both within and without Virginia, the
				employee's compensation will be attributed to Virginia if:
(i) The employee's base of operations is in
				Virginia, or
(ii) If there is no
				base of operations in any state in which some part of the service is performed,
				but the place from which the employee's service is directed or controlled is in
				Virginia, or
(iii) If the base of
				operations or the place from which the employee's service is directed or
				controlled is not in any state in which some part of the service is performed,
				but the employee's residence is in Virginia.
4. Any wages reported pursuant to the
				Virginia Unemployment Compensation Act (Va. Code § 60.1-1 et seq.) shall
				be presumed to be compensation paid in Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-210 - Sales factor

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
				The sales factor is a fraction, the numerator of which is the total sales in
				Virginia during the taxable year, and the denominator of which is the total
				sales of the corporation everywhere during the taxable year.
B. Sales. "Sales" is defined in §
				58.1-302 of the Code of Virginia and means all gross receipts of the
				corporation except dividends allocated under § 58.1-407 of the Code of
				Virginia. In the case of the sale or disposition of intangible property
				(including, but not limited to patents, copyrights, bonds, stocks and other
				securities) gross receipts shall be disregarded and only the net gain from the
				transaction shall be included. Sales shall be included in the sales factor if
				the gross receipts or net gain are included in Virginia taxable income and are
				connected with the conduct of taxpayer's trade or business within the United
				States. See
				23VAC10-120-150.
1. Net gain is computed on a per transaction
				basis. A sale or disposition of intangible property is included in the sales
				factor only to the extent that it results in a net gain.
2. A disposition of intangible property
				resulting in a loss is ignored in computing the sales factor. A loss is not
				used to offset gains from the sale or other disposition of intangible property,
				and a loss is not used to reduce other gross receipts.
3. The net gain from the transaction must be
				recognized, i.e., includable in federal taxable income, in order to be included
				in the Virginia sales factor.
4.
				"Sale or other disposition" includes the sale, exchange, redemption, maturity
				or other disposition of intangible property.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-220 - When sales of tangible personal property deemed in this Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. Sales of tangible personal property are in
				Virginia if such property is received in Virginia by the purchaser. In the case
				of a direct delivery to a person designated by the purchaser, a sale of such
				property is in Virginia if such property is ultimately received in Virginia by
				such designated person.
2. Receipts
				and transfers by persons other than the purchaser, or a designated ultimate
				recipient, are part of the transportation process and not considered in
				assigning sales to Virginia or any other state. A receipt by a person is a
				direct delivery to such person unless some other person is known to be the
				ultimate recipient at or before the time of first shipment.
3. The state in which title passes has no
				bearing on the state to which a sale is attributed. However, the fact that
				title has passed from the seller is indicative that a sale is complete and that
				the property is either at its ultimate destination or in transit to the
				ultimate destination.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-230 - When certain other sales deemed in this Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. The
				numerator of the sales factor shall include sales, other than sales of tangible
				personal property governed by § 58.1-415 of the Code of Virginia, if:
1. the income producing activity is performed
				in Virginia, or
2. the income
				producing activity is performed both in and outside Virginia and a greater
				proportion of the income producing activity is performed in Virginia than in
				any other state, based on costs of performance.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-240 - Motor carriers; apportionment

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. Motor carriers do not use the three factor
				formula to apportion Virginia taxable income but instead apportion solely on
				the basis of vehicle miles traveled. The ratio is vehicle miles in Virginia to
				vehicle miles everywhere.
2.
				Foreign source income is excluded from Virginia taxable income. However, income
				from vehicle miles traveled in a foreign country is not one of the categories
				of foreign source income qualifying for exclusion. Therefore, all income from
				such vehicle miles is included in Virginia taxable income and such vehicle
				miles are included in the denominator, but not the numerator.
3. "Motor carrier" means all corporations
				licensed by the Interstate Commerce Commission or the Virginia State
				Corporation Commission as motor carriers of property or passengers which use
				the highways of Virginia.
4.
a. "Vehicle miles" means miles traveled on a
				scheduled route or, in any case, while carrying property or passengers for a
				charge. A scheduled route is any route for which the motor carrier has been
				granted operating authority by the Interstate Commerce Commission, State
				Corporation Commission or similar agency. The miles traveled by all vehicles
				operated by the taxpayer shall be included, regardless of whether they are
				owned or leased by the taxpayer.
b.
				Vehicle miles shall not include travel for repairs or service whether the
				vehicle is normally used for carrying property or passengers or is normally
				used to service such vehicles.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-250 - Financial corporations; apportionment

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. Financial corporations do not apportion
				Virginia taxable income using the three factor formula but instead apportion
				income based solely on cost of performance.
2. Financial corporations include, but are
				not limited to, banks, savings and loan associations, mortgage companies, small
				loan companies, sales finance companies, brokerage companies, investment
				companies and other corporations which meet the definition of a financial
				corporation set forth in subsection B.
3. If a corporation meets the definition of a
				financial corporation, it apportions Virginia taxable income, less allocable
				dividends, on a one factor formula based on cost of performance in Virginia
				over cost of performance everywhere.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-260 - Construction corporation; apportionment

Current through Register Vol. 40, No. 24, July 15, 2024
A. If a construction corporation used the
				completed contract method of accounting for its federal income tax return it is
				required by § 58.1-440 of the Code of Virginia to use the same method for
				computing Virginia taxable income.
B. If a construction corporation is required
				to allocate and apportion income by § 58.1-405 of the Code of Virginia, it
				shall apportion income (other than dividend income allocable under §
				58.1-407 of the Code of Virginia) within and without this Commonwealth in the
				ratio that the business within this Commonwealth is to the total business of
				the corporation.
C. If a
				corporation does not use the completed contract method, it shall use the three
				factor apportionment formula in § 58.1-408 et seq. of the Code of
				Virginia.
D. If a portion of a
				construction corporation's income is reported under the completed contract
				method and a portion is reported under a percentage of completion method or
				some other accounting method, the applicable apportionment formula is
				determined by the method used to report a majority (more than 50%) of the total
				business (measured by gross revenue) conducted by the taxpayer for the taxable
				year. If no one method is used to report a majority of the taxpayer's total
				business, the three factor apportionment formula in § 58.1-408 et seq. of
				the Code of Virginia shall be used.
E. An example follows:
A construction corporation's total business is $500,000 for
				  the taxable year ended December 31, 1991: $275,000 is reported on the completed
				  contract basis, $150,000 is reported under a percentage of completion method,
				  and the remainder is reported on a cash basis. Because a majority of the total
				  business was reported using the completed contract method of accounting, the
				  taxpayer is required to apportion income using the single factor of business
				  within Virginia over total business of the corporation.
Statutory Authority
§§ 58.1-203 and 58.1-419 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-265 - Construction corporation; definitions

Current through Register Vol. 40, No. 24, July 15, 2024
A. The total business of a corporation using
				the completed contract method of accounting is its gross receipts from
				completed contracts and all other gross receipts except income allocable under
				§ 58.1-407 of the Code of Virginia.
B. Business within this Commonwealth is the
				gross receipts of such corporations from completed contracts on jobs within
				Virginia and all other gross receipts attributable to income from sources
				within Virginia.
C. The "completed
				contract method" does not include any of the percentage of completion methods
				available under federal law.
Statutory Authority
§§ 58.1-203 and 58.1-419 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-270 - Railway companies; apportionment

Current through Register Vol. 40, No. 24, July 15, 2024
A. Railway companies are required to
				apportion income by use of a special factor. The factor is a fraction, the
				numerator of which is the revenue car miles in Virginia and the denominator of
				which is revenue car miles everywhere.
B. Definitions.
"Railway company" means any corporation subject to
				  regulation as a railway company by the U.S. Interstate Commerce
				  Commission.
"Income subject to apportionment" means the entire Virginia
				  taxable income of the corporation except income allocable under
				  23VAC10-120-140.
"Revenue car mile" means the movement of loaded car
				  equipment a distance of one mile determined in accordance with the Uniform
				  System of Accounts for Railroad Companies of the Interstate Commerce
				  Commission.
Statutory Authority
§§ 58.1-203 and 58.1-420 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-300 - Accounting

Current through Register Vol. 40, No. 24, July 15, 2024
A. A corporation
				shall use the same taxable year for Virginia tax purposes as is used for
				federal income tax purposes.
B. If
				a corporation's taxable year is changed for federal income tax purposes, its
				taxable year for Virginia tax purposes shall be similarly changed.
If a change in a corporation's taxable year results in a
				  taxable period of less than twelve months, no proration is required because the
				  corporate tax rate is a flat 6%. However, if a corporation is required to
				  annualize its federal taxable income and prorate the federal income tax, then
				  the Virginia taxable income shall be similarly annualized and the tax
				  prorated.
C. Virginia
				taxable income is defined as federal taxable income with certain additions,
				subtractions and modifications. Therefore, Virginia taxable income will always
				be based upon the same accounting methods as used for federal purposes.
The allocation and apportionment formulas use information
				  not required in computing federal taxable income. See
				  23VAC10-120-140 through
				  23VAC10-120-270.
D. If a corporation's method of accounting is
				changed for federal income tax purposes, its method of accounting for Virginia
				tax purposes must be similarly changed. Since Virginia taxable income is based
				upon federal taxable income, any accounting adjustments for federal purposes
				for any taxable year shall also apply to the computation of Virginia taxable
				income.
Statutory Authority
§§ 58.1-203 and 58.1-440 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-310 - Reports by corporations

Current through Register Vol. 40, No. 24, July 15, 2024
A.
1. Every corporation organized under the laws
				of Virginia and every foreign corporation registered with the State Corporation
				Commission for the privilege of doing business in Virginia shall file a return
				with the Department of Taxation under this section. A return must be filed even
				if the corporation has no income from Virginia sources and no Virginia income
				tax is due.
2. Every corporation
				having income from Virginia sources shall file a return with the Department of
				Taxation. "Income from Virginia sources" is defined in
				23VAC10-120-20. If a corporation
				has income from Virginia sources it shall file a return regardless of where it
				is organized, headquartered or from where it is managed or directed, or where
				its shareholders reside or whether it has registered with the State Corporation
				Commission for the privilege of doing business in Virginia.
3. Corporations exempt from Virginia income
				tax may be required to file a return even though the income from Virginia
				sources is exempt from income tax.
4. U.S. Public Law 86-272 ( 15 USC
				§§ 381 - 384 ) prohibits Virginia from taxing income from Virginia
				sources if the corporation does not have sufficient connection with Virginia.
				Corporations whose income from Virginia sources is not subject to tax because
				of P.L. 86-272 must file a return if they are registered with the State
				Corporation Commission for the privilege of doing business in
				Virginia.
5.
a. Receivers appointed by a court shall file
				a return for a corporation if:
(i) property or
				business of the corporation is being operated by the receiver, or
(ii) the receivers have full custody of and
				control over the business or property of a corporation.
b. Returns must be filed whether the
				receivers are carrying on the business for which the corporation was organized
				or only marshalling, selling or disposing of its assets for the purpose of
				liquidation.
6. Trustees
				in dissolution, trustees in bankruptcy and assignees for the benefit of
				creditors shall file returns for a corporation if they are operating the
				property or business of the corporation. Property or business is being operated
				if there are any gross receipts from such property or business.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-321 - Separate return; description; filing

Current through Register Vol. 40, No. 24, July 15, 2024
A. Description. A separate return shows only
				the income, expenses, gains, losses, allocable income, and apportionment
				factors of the filing corporation. All affairs of other members of the
				affiliated group are ignored unless § 58.1-446 of the Code of Virginia
				applies.
B. Filing. If the
				affiliated group filed a consolidated federal return and the filing corporation
				files a separate Virginia return, a complete copy of the federal consolidated
				return must be filed with the Virginia return. If the federal return is so
				voluminous that it is impractical to file a complete copy with the Virginia
				return, the complete federal return must be made available to the department
				upon request. A worksheet must accompany the federal consolidated return,
				showing the adjustments and eliminations for consolidation in form similar to
				that set forth in
				23VAC10-120-322 C.
Statutory Authority
§§ 58.1-203 and 58.1-442 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-322 - Consolidated returns; description; eligible members; filing; consent

Current through Register Vol. 40, No. 24, July 15, 2024
A. Description. A
				consolidated return is a single return for all eligible members of an
				affiliated group of corporations. The return shall show consolidated net income
				prepared in accordance with IRC § 1502 and the regulations thereunder and
				consolidated apportionment factors (See §§ 58.1-407 through 58.1-420
				of the Code of Virginia).
B.
				Eligible members.
1. A consolidated return
				must include the net income and apportionment factors of all members of an
				affiliated group which would be subject to Virginia income tax if separate
				returns were to be filed. However, in the first year two or more members of an
				affiliated group are required to file a Virginia income tax return, all members
				subject to Virginia income tax and otherwise eligible to participate in a
				Virginia consolidated return in that first year must have the same taxable year
				end in order for the group to elect consolidated filing. In order for the
				affiliate's income to be includible in a Virginia consolidated return, each new
				affiliate created or purchased after the initial Virginia consolidated return
				filing must adopt the taxable year end of the original group for the new
				affiliate's first full 12-month taxable year and thereafter.
2. A consolidated return may not include
				corporations which are:
(i) exempt from
				Virginia income tax under § 58.1-401 of the Code of Virginia or U.S.
				Public Law 86-272 ( 15 USC §§ 381 - 384 ), or
(ii) not affiliated as defined by §
				58.1-302 of the Code of Virginia, or
(iii) not subject to Virginia income tax if
				separate returns were to be filed, or
(iv) using different taxable years. For
				purposes of clause (iv) a corporation shall not be deemed to be using a
				different taxable year if it files a return for a period of less than 12 months
				and all of the months are within the taxable year of the consolidated
				group.
3. No affiliated
				corporations, otherwise eligible, will be denied the privilege of consolidation
				merely because other members of the affiliated group are not eligible to be
				included.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-323 - Combined returns; description; eligible members; filing; consent

Current through Register Vol. 40, No. 24, July 15, 2024
A. Description. For
				a combined return the Virginia taxable income or loss is separately determined
				for each eligible corporation. The Virginia taxable income is then separately
				allocated and apportioned for each eligible corporation using each
				corporation's commercial domicile and apportionment factors. The resulting
				income or loss from Virginia sources is then combined and reported on a single
				return.
B. Eligible members.
1. Members of an affiliated group are
				eligible to file a combined return if they are:
(i) subject to Virginia income tax if a
				separate return were to be filed, and
(ii) affiliated as defined by § 58.1-302
				of the Code of Virginia, and
(iii)
				filing using the same taxable year. For the purpose of determining eligibility
				to be included in a combined return, a corporation shall not be deemed to be
				using a different taxable year if it files a return for a period of less than
				12 months and all of the months are within the taxable year of the combined
				group.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-324 - Consolidated and combined returns; permission to change

Current through Register Vol. 40, No. 24, July 15, 2024
A. To or from consolidated.
1. Permission to change to or from filing
				consolidated returns will generally not be granted. Such changes affect the
				allocation and apportionment factors and distort the business done in Virginia
				and the income arising from activity in Virginia.
2. If granted, permission to change will
				generally be effective only for returns filed on and after the date the request
				for permission to change was filed.
3. Permission to file a consolidated return
				will generally be granted if timely requested by a group including corporations
				that would be required to use different apportionment factors. A request is
				timely filed if it is filed on or before the due date for the first Virginia
				return for an affiliate which was owned by the same interests on January 1,
				1990, and which would be required to use an apportionment factor that is not
				the same as that required to be used by all other affiliates of the group in
				previous Virginia returns, whether or not any affiliate is subject to tax in
				another state.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-325 - Consolidated and combined returns; carryovers

Current through Register Vol. 40, No. 24, July 15, 2024
A. Carryovers
1. Double benefit prohibited. When any
				corporation elects to file, or is granted permission to file, a consolidated or
				combined return and subsequently incurs a net operating loss or net capital
				loss for federal income tax purposes, such loss may be carried back to
				specified prior years or carried over to specified subsequent years under
				federal law. To the extent a federal net operating loss is used to offset
				income of other members of the affiliated group in a Virginia combined or
				consolidated return in the year of the loss, it may not be used to reduce
				income for Virginia purposes of the loss corporation or other members of the
				group in any other years via the federal net operating loss
				deduction.
2. Net operating losses
				before December 31, 1992. If an affiliate has incurred and utilized a federal
				net operating loss in a taxable year beginning before December 31, 1992, and
				the amount of loss and Virginia modification utilized was not computed in
				accordance with IRC § 172 et seq.;
				23VAC10-120-320 D et seq. and
				subdivision D of this section, an adjustment will be made within the applicable
				statutory period for any double benefit received.
3. Net operating losses incurred before and
				utilized after December 31, 1992. All affiliates having net operating losses
				incurred in taxable years beginning before December 31, 1992, and carried to
				taxable years beginning after December 31, 1992, must recompute the
				carryforward amount of federal net operating loss, and accompanying Virginia
				modification, as if all provisions of this regulation had been in effect when
				the federal net operating loss was first incurred. If an affiliate utilized an
				amount of federal net operating loss greater than would have been allowed under
				the provisions of this regulation, the affiliate's federal net operating loss
				carryforward for Virginia purposes shall be reduced by the excess amount
				utilized. The affiliate's Virginia modification to the federal net operating
				loss shall be adjusted proportionately.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-326 - Consolidated return; mixed apportionment factors

Current through Register Vol. 40, No. 24, July 15, 2024
A. Three factor required. If a consolidated
				Virginia return will include corporations that are required to use different
				apportionment factors, the return shall use a three factor apportionment
				formula that includes the property, payroll, and sales of all
				affiliates.
B. Computation. The
				consolidated property, payroll, and sales factors of the group shall be
				computed as follows:
1. With respect to a
				corporation that is required to use a single apportionment factor under
				§§ 58.1-417, 58.1-418, 58.1-419 or 58.1-420 (single factor
				affiliate), the group shall:
a. Include in the
				consolidated property, payroll, and sales factor denominators amounts with
				respect to the single factor affiliate determined following the normal rules
				for each factor;
b. Include in the
				consolidated property factor numerator an amount constructed by multiplying the
				amount includible in the property factor denominator determined in subdivision
				a above by the percentage derived from the appropriate factor prescribed for
				the single factor affiliate;
c.
				Include in the consolidated payroll factor numerator an amount constructed by
				multiplying the amount includible in the payroll factor denominator determined
				in subdivision a above by the percentage derived from the appropriate factor
				prescribed for the single factor affiliate; and
d. Include in the consolidated sales factor
				numerator an amount constructed by multiplying the amount includible in the
				sales factor denominator determined in subdivision a above by the percentage
				derived from the appropriate factor prescribed for the single factor
				affiliate.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-330 - Prohibition of worldwide consolidation or combination

Current through Register Vol. 40, No. 24, July 15, 2024
A consolidated or combined return may not include a
				  controlled foreign corporation the income of which is derived from sources
				  without the United States.
1. A
				controlled foreign corporation is a corporation which:
a. is organized under the laws of a foreign
				country, and
b. has its commercial
				domicile in a foreign country, and
c. is an affiliate of one or more
				corporations having income from Virginia sources.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-350 - Consolidation of accounts

Current through Register Vol. 40, No. 24, July 15, 2024
A.
1. This section allows the Department of
				Taxation to consolidate the accounts of two or more related trades or
				businesses which are owned or controlled directly or indirectly by the same
				interests and liable to taxation under this chapter, if the Department
				determines such consolidation is necessary to accurately distribute or
				apportion gains, profits, income, deductions or capital between or among such
				trades or businesses.
2. If related
				trades or businesses have been conducted in such a manner that income is
				inaccurately stated, the Internal Revenue Service will usually apply IRC §
				482 to make necessary adjustments. This section applies to situations in which
				the federal taxable income is accurately stated but the income from Virginia
				sources taxable by Virginia is inaccurate.
3. If one of the related trades or businesses
				is a corporation, § 58.1-446 of the Code of Virginia may also
				apply.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-380 - Execution of returns

Current through Register Vol. 40, No. 24, July 15, 2024
A. The
				return of a corporation with respect to its income shall be signed by one of
				the following officers: president, vice-president, treasurer, assistant
				treasurer, chief accounting officer or any other officer duly authorized to
				act. In the case of a return made for a corporation by a fiduciary such as a
				receiver, trustee or assignee, such fiduciary shall sign the return. The fact
				that an individual's name is signed on the return shall be prima facie evidence
				that such individual is authorized to sign the return on behalf of the
				corporation.
B. The return of an
				affiliated group of corporations shall be signed by an officer of the lead
				corporation. The name and address of the lead corporation shall be shown on the
				return. All correspondence from the department to the affiliated group may be
				mailed to the lead corporation. The lead corporation will usually be a parent
				corporation, if the parent is subject to tax in Virginia, but may be any member
				subject to the tax in Virginia.
The return shall contain the following information for each
				  member of the affiliated group included in the return:
1. Name, address and taxpayer I.D. No. of
				each consenting corporation,
2.
				Name, title and telephone number of an officer authorized to sign a return for
				the member,
3. Name and address of
				the person with custody of the books of the member.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-390 - Supplemental reports

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Audits. During the course of an office or field audit the department may
				request additional information if the auditor determines that the information
				is necessary to compute the tax. For example, when an adjustment is
				contemplated under § 58.1-446 of the Code of Virginia, the department will
				ask for a copy of the federal return of the Domestic International Sales
				Company.
B. Penalty. If the
				additional information or supplemental report is not supplied within a
				reasonable time after written demand, the penalty under § 58.1-450 of the
				Code of Virginia may be imposed.
Statutory Authority
§§ 58.1-203 and 58.1-449 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-400 - Extension of time for filing returns

Current through Register Vol. 40, No. 24, July 15, 2024
A. Automatic extension. Whenever a
				corporation has been granted an extension of time for filing by the Internal
				Revenue Service, a similar extension will be granted to a date thirty days
				after the extended federal due date but not later than six months after the due
				date required by Virginia law. In other words, an extension will not be granted
				beyond the fifteenth day of the tenth month following the close of the taxable
				year.
A penalty will be imposed unless a tentative tax return is
				  filed and the tax paid as provided in subsection C of this section.
B. Good cause extension. When no
				federal extension has been granted, the department may grant an extension for
				filing if the taxpayer shows good cause for requesting such an extension. The
				extension may not exceed six months.
A penalty will be imposed unless a tentative tax return is
				  filed and the tax paid as provided in subsection C of this section.
C. Tentative tax return. Any
				corporation requesting an extension of time for filing its return must file a
				tentative tax return with the request. The tentative tax return must estimate
				the tax liability of the corporation and be accompanied by payment of the
				balance due after allowance for prior payments of estimated tax and prior
				tentative tax returns, if any.
Interest will accrue under § 58.1-1812 of the Code of
				  Virginia on any unpaid tax liability from the due date of the return without
				  regard to any extensions. This section extends only the date for filing a
				  return, not the date for payment of the tax.
If the underestimation of the balance of tax due exceeds ten
				  percent of the actual tax liability a penalty will be imposed. The penalty is
				  one half of one percent per month for each month or fraction thereof from the
				  original due date for the filing of the income tax return to the date of
				  payment. The penalty will be imposed in addition to interest under §
				  58.1-1812 of the Code of Virginia.
D. Application procedure. The extension
				request and tentative tax return must be filed before the original due date of
				the return. An additional extension may be requested if filed before the
				expiration of a previous extension. Requests will not be acknowledged or
				returned unless the request for extension is denied. A copy of each extension
				request and tentative tax return shall be attached to the income tax return
				when filed.
Statutory Authority
§§ 58.1-203 and 58.1-453 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-410 - Time of payment of corporation income taxes

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. The tax payable as shown on
				the face of the return shall be paid on or before the due date of the return.
				Where an extension of time for filing the return has been obtained pursuant to
				§ 58.1-453 of the Code of Virginia, the balance of the actual tax due
				shall be paid on or before the due date as extended.
B. Penalty. If the tax, or unpaid balance of
				the tax, is not paid in full when due then a penalty of five percent of the
				unpaid tax shall be imposed. No penalty will be imposed on the late payment of
				a tax, or portion of the tax, if all three of the following conditions are
				satisfied:
1. The unpaid tax is attributable
				to an assessment of additional tax by the department, and
2. The return was filed by the taxpayer in
				good faith, and
3. The
				understatement of tax in the return was not due to any fault of the
				taxpayer.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-420 - Declarations of estimated income tax required

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. Every corporation which
				expects its income tax to exceed $1,000 for the taxable year is required to
				file a declaration of estimated tax and to pay the tax in installments during
				the taxable year. The payments of estimated tax are considered payments on
				account of the income tax for the taxable year and shall be applied toward
				payment of the income tax upon filing of the income tax return for the taxable
				year. The declaration of estimated tax may be amended with each installment and
				subsequent payments adjusted accordingly. No refund of estimated tax can be
				made until the income tax return is filed except in extraordinary
				circumstances. For example, if a credit union pays estimated tax without
				realizing that it is exempt from income tax under § 58.1-401 of the Code
				of Virginia, it would be entitled to a refund of estimated tax because a credit
				union is not required to file an income tax return.
B. Who to file.
1. A declaration of estimated tax shall be
				made by every corporation which is subject to the Virginia income tax under
				§ 58.1-400 of the Code of Virginia if its income tax less the credit
				allowable under §§ 58.1-430 (relating to credit for investments under
				the Neighborhood Assistance Act of 1981) and 58.1-431 of the Code of Virginia
				(relating to the Energy Income Tax Credit) can reasonably be expected to exceed
				$1,000.
2. The term "estimated tax"
				means the amount which the corporation estimates as the amount of the income
				tax for the taxable year less the amount which the corporation estimates as the
				sum of any credit allowable against the income tax under §§ 58.1-430
				and 48.1-431 of the Code of Virginia. For the purpose of determining if a
				declaration of estimated tax is required, a refund of income tax for prior
				taxable year, which the corporation requests be applied toward the estimated
				tax for the subsequent taxable year, is not an allowable credit but a payment
				of the estimated tax. For example, a corporation which estimates its 1984
				income tax to be $2,500, its Energy Income Tax Credit to be $1,000 and which
				has a refund from 1983 of $300 has an "estimated tax" of $1,500. The $300
				refund may be applied toward the first quarterly installment payment of $375
				(1,500/4).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-430 - Time for filing declarations

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. If a corporation expects its
				income tax less allowable credits to exceed $1,000 at the beginning of the
				taxable year then the corporation must make its declaration of estimated tax on
				or before the 15th day of the 4th month of the taxable year (April 15 for a
				calendar year corporation) and the declaration must be accompanied by the
				installment payment for the first quarter.
Corporations which expect their income tax less allowable
				  credits to exceed $1,000 as a result of events occurring after the beginning of
				  a taxable year shall make a declaration of estimated tax at the time specified
				  below. Examples of events occurring after the beginning of a taxable year are:
				  a foreign corporation registering to do business in Virginia and acquisition of
				  a corporation doing business in Virginia.
The date on which a corporation first estimates that its
				  Virginia income tax less allowable credits will exceed $1,000 determines the
				  date that the declaration of estimated tax is required to be filed.
1. If such date is before the 1st day of the
				4th month of the taxable year the declaration is required to be filed on or
				before the 15th day of the 4th month of the taxable year.
2. If such date is after the last day of the
				3rd month and before the 1st day of the 6th month of the taxable year the
				declaration is required to be filed on or before the 15th day of the 6th month
				of the taxable year.
3. If such
				date is after the last day of the 5th month and before the 1st day of the 9th
				month of the taxable year the declaration is required to be filed on or before
				the 15th day of the 9th month of the taxable year.
4. If such date is after the last day of the
				8th month and before the 1st day of the 12th month of the taxable year the
				declaration is required to be filed on or before the 15th day of the 12th month
				of the taxable year.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-440 - Installment payment of estimated tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. The estimated tax shall be
				paid in installments as follows:
1. If the
				declaration is required to be filed on the 15th day of the 4th month of the
				taxable year, 25% shall be paid with the declaration and on the 15th day of the
				6th, 9th and 12th month of the taxable year.
2. If the declaration is required to be filed
				on the 15th day of the 6th month of the taxable year, 33% shall be paid with
				the declaration and on the 15th day of the 9th and 12th month of the taxable
				year.
3. If the declaration is
				required to be filed on the 15th day of the 9th month of the taxable year, 50%
				shall be paid with the declaration and on the 15th day of the 12th month of the
				taxable year.
4. If the declaration
				is required to be filed on the 15th day of the 12th month of the taxable year,
				100% shall be paid with the declaration.