D.C. Mun. Regs. tit. 9, r. 9-162

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 9-162 - COMBINED REPORTING: WORLDWIDE REPORTING; AND INITIATION AND WITHDRAWAL OF ELECTION

162.1

Worldwide reporting. The member or members of the combined group engaged in a unitary business may elect to determine their apportioned share of the aggregate taxable net income or loss derived from the unitary business pursuant to a worldwide election under which each member shall take into account the income and apportionment factors of all the members, wherever located, includible in the combined group. If the members of a combined group do not make this election, each member shall determine its apportioned share of such income on a water's-edge basis.

162.2Mechanics for making the worldwide election. A worldwide election shall be made by the designated agent of the combined group. The election shall be made on an election form and shall be attached to an original, timely filed return. The election, to be valid, must indicate, in the manner that the Chief Financial Officer requires, that every entity that is a member of the combined group has agreed to be bound by such election. This election must include an agreement by each member of the group that such election shall apply to any member that subsequently enters the group and an agreement that each member continues to be bound by the election in the event that such member is subsequently the subject of a reverse acquisition described inTreas. Reg. § 1.1502 -75(d)(3).

162.3Effect of election in subsequent tax years. A worldwide election shall be binding for and applicable to the taxable year for which it is made and for the next nine taxable years. Any person entering the unitary combined group after the year of the election shall be deemed to have consented to the application of the election and to have waived any objection thereto. Reverse acquisition rules based on the federal rules set forth in Treas. Reg. § 1.1502 -75(d)(3) shall be applied in determining whether a person is bound by a worldwide election in fact patterns described in such rules.

162.4Change in reporting method. If either the water's-edge or worldwide method was used to account for the combined group members' income and apportionment data in the preceding tax year and the other method is to be used for the combined group's combined report for the current tax year, adjustments to the income and apportionment data of the group members shall be made to prevent income and apportionment data from being omitted, or duplicated.

D.C. Mun. Regs. tit. 9, r. 9-162

Final Rulemaking published at 59 DCR 10875, 10887 (September 14, 2012)

Authority: The Deputy Chief Financial Officer of the District of Columbia Office of Tax and Revenue (OTR) of the Office of the Chief Financial Officer, pursuant to the authority set forth in D.C. Official Code § 47-1335 (2005 Repl.), section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019; P.L. 109-356, D.C. Official Code § 1-204.24 d (2012 Supp.)) of the Home Rule Act, and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000.