§ 6-3-4-14 — Affiliated group of corporations; consolidated returns

Indiana § 6-3-4-14

• Jurisdiction: Indiana
• Art. 3: STATE INCOME TAXES
• Ch. 4: Returns and Remittances

Text

(a) An affiliated group of corporations shall
have the privilege of making a consolidated return with respect to the
taxes imposed by IC 6-3. The making of a consolidated return shall be
upon the condition that all corporations which at any time during the
taxable year have been members of the affiliated group consent to all
of the provisions of this section including all provisions of the
consolidated return regulations prescribed pursuant to Section 1502 of
the Internal Revenue Code and incorporated in this section by reference
and all regulations promulgated by the department implementing this
section prior to the last day prescribed by law for the filing of such
return. The making of a consolidated return shall be considered as such
consent. In the case of a corporation which is a member of the affiliated
group for a fractional part of the year, the consolidated return shall
include the income of such corporation for such part of the year as it is
a member of the affiliated group.
(b) For the purposes of this section the term "affiliated group" shall
mean an "affiliated group" as defined in Section 1504 of the Internal
Revenue Code with the exception that the affiliated group shall not
include any corporation which does not have adjusted gross income
derived from sources within the state of Indiana.
(c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable
income," as defined in Section 63 of the Internal Revenue Code, of any
affiliated group of corporations making a consolidated return and of
each corporation in the group, both during and after the period of
affiliation, shall be determined pursuant to the regulations prescribed
under Section 1502 of the Internal Revenue Code.
(d) Any credit against the taxes imposed by IC 6-3 which is
available to any corporation which is a member of an affiliated group
of corporations making a consolidated return shall be applied against
the tax liability of the affiliated group.
(e) For purposes of this section, the following rules shall apply:
(1) In the case of the sale of a corporation, the filing status of the
remaining members of the consolidated group shall continue
absent an election by those consolidated members to file
separately or on a combined basis.
(2) In the case of a merger, the previous filing status of the
surviving corporation shall continue. If the surviving corporation
is part of an affiliated group that filed a consolidated return in the
immediately preceding taxable year, the surviving corporation
shall be considered to be part of the consolidated return, provided
that the surviving corporation would otherwise be part of the
affiliated group under subsection (b).
(3) In the case of an acquisition of a corporation, the filing status
of the acquiring group shall continue absent an election by the
corporations to file separately or on a combined basis.
(4) In the case of a corporation that was previously part of a
consolidated return but ceased to be part of a consolidated return
for any other reason, the election to be part of a consolidated
return shall be considered to continue for all corporations.
Provided, however, that if a consolidated election is discontinued as a
result of sale, merger, acquisition, or any other reason, nothing in this
section shall be construed to prevent a new election to file a
consolidated return under this section.
Formerly: Acts 1963(ss), c.32, s.414; Acts 1965, c.233, s.24. As
amended by Acts 1980, P.L.54, SEC.6; P.L.136-2018, SEC.40;
P.L.137-2022, SEC.39.