This text of Iowa § 422.37 (Consolidated returns) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Any affiliated group of corporations may, not later than the due date for filing its return
for the taxable year, including any extensions thereof, under rules to be prescribed by the
director, elect, and upon demand of the director shall be required, to make a consolidated
return showing the consolidated net income of all such corporations and other information
as the director may require, subject to the following:
1.The affiliated group filing under this section shall file a consolidated return for federal
income tax purposes for the same taxable year.
2.AllmembersoftheaffiliatedgroupshalljoininthefilingofanIowaconsolidatedreturn
to the extent they are subject to the tax imposed by section 422.33, except as otherwise
provided in section 29C.24.
3.Members of the affiliated group exempt
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Any affiliated group of corporations may, not later than the due date for filing its return
for the taxable year, including any extensions thereof, under rules to be prescribed by the
director, elect, and upon demand of the director shall be required, to make a consolidated
return showing the consolidated net income of all such corporations and other information
as the director may require, subject to the following:
1. The affiliated group filing under this section shall file a consolidated return for federal
income tax purposes for the same taxable year.
2. AllmembersoftheaffiliatedgroupshalljoininthefilingofanIowaconsolidatedreturn
to the extent they are subject to the tax imposed by section 422.33, except as otherwise
provided in section 29C.24.
3. Members of the affiliated group exempt from taxation by section 422.34 of the Code
shall not be included in a consolidated return.
4. All members of the affiliated group shall use the statutory method of allocation and
apportionmentunlessthedirectorhasgrantedpermissiontoallmemberstouseanalternative
method of allocation and apportionment.
5. Each member of the affiliated group shall consent to the rules governing a consolidated
return prescribed by the director at the time the consolidated return is filed, unless the
director requires the filing of a consolidated return. The filing of a consolidated return shall
be considered the affiliated group’s consent.
6. The filing of a consolidated return for any taxable year shall require the filing of
consolidated returns for all subsequent taxable years so long as the filing taxpayers remain
members of the affiliated group unless the director determines that the filing of separate
returns will more clearly disclose the taxable incomes of each member of the affiliated
group. This determination shall be made after specific request by the taxpayer for the filing
of separate returns.
7. The computation of consolidated taxable income for the members of an affiliated
group of corporations subject to tax shall be made in the same manner and under the same
procedures, including all intercompany adjustments and eliminations, as are required for
consolidating the incomes of affiliated corporations for the taxable year for federal income
tax purposes in accordance with section 1502 of the Internal Revenue Code.
8. a. (1) The affiliated group shall file a return under this section for each taxable year in
an electronic format specified by the department, regardless of the total gross receipts of or
amount of credits reported by the affiliated group.
(2) For purposes of the electronic filing requirement, a return of an affiliated group
includes any form or schedule supporting the return or any amended return of the affiliated
group.
(3) The financial institution is a corporation subject to the electronic filing requirement
under section 422.36, subsection 8, paragraph “b”.
b. (1) Notwithstanding paragraph “a”, the department may provide an exception to file a
return in an electronic format.
(2) A return subject to the electronic filing requirement in paragraph “a” that is filed in a
mannerotherthaninanelectronicformatspecifiedbythedepartmentshallnotbeconsidered
a valid return unless the department provides an exception pursuant to this paragraph.
c. The department shall adopt rules to implement this subsection.