Combined Reporting for Business Entities
For tax years beginning on or after January 1, 2011, a corporation or unincorporated business entity subject to tax and engaged in a unitary business with one or more corporations or unincorporated business entities subject to combination shall calculate its taxable net income derived from this unitary business as its share, attributable to the District, of the apportionable income or loss of the combined group engaged in the unitary business, determined in accordance with a combined report.
In computing the apportionable income or loss of the combined group and of each member thereof, items of income, deductions and receipts from transactions between or among members of the combined group, including but not limited to the payment of dividends, shall be eliminated.
Combined reporting statutes can be found at the following link and are organized as follows:
DC Official Code
§47-1801.04. - General definitions.
§47-1805.02a. - Combined reporting.
§47-1810.04. - Determination of taxable income or loss using combined report; components of income subject to tax in the District, application of tax credits and post-apportionment deductions; determination of taxpayer’s share of the business income of a combine group apportionable to the District.
§47-1810.05. - Determination of the business income of the combined group.
§47-1810.06. - Designation of surety.
§47-1810.07. - Water’s-edge reporting; initiation and withdrawal election.
§47-1810.08. - Accounting rules; future deductions.
Proposed Regulations, January 20, 2012, Proposed Regulations Regarding Combined Reporting [PDF ] (Cite: 59 DCR 343)
Revised Proposed Regulations, August 31, 2012, Revised Proposed Regulations Regarding Combined Reporting [PDF] (Cite: 59 DCR 35)
Final Regulations, September 14, 2012, Final Regulations Regarding Combined Reporting [PDF] (Cite 59 DCR 37)
District of Columbia Municipal Regulations (DCMR)
The District of Columbia Municipal Regulations (DCMR) can be found at the above link and are organized as follows:
9 DCMR §§ 156 - 176
§156. Outline, Effective Date, Purpose; General Rule; Revocation of Election to File Consolidated Returns; and Definitions
§157. Composition of the Combined Group
§158. Determination of a Unitary Business; Commonly Controlled; and Unitary Presumptions
§159. Passive Holding Companies
§160. Statute of Limitations
§161. Water’s-Edge Determination
§162. Worldwide Reporting; and Initiation and Withdrawal of Election
§163. Determination of Taxable Income or Loss Using a Combined Report
§164. Combining Special Apportionment Formulas
§165. Net Operating Losses
§166. Tax Credits
§167. Taxable Year; Part-Year Members
§168. Designated Agent; Liability
§170. Unincorporated Business Entities / Partnerships
§171. Minimum Tax Payable
§172. Estimated Tax Payments
§173. Real Estate Investment Trusts
§174. Regulated Investment Companies
§175. FAS 109 Deduction
§176. Time and Place for Filing Tax Returns; Extensions; Closing Out Separate Entities
Forms and Schedules
- 2011 Instructions to Complete the DC Combined Report for Franchise Tax Returns (includes instructions and blank and sample schedules)
- Schedules, including sample schedules
Complete the following Combined Reporting Schedules as applicable and file with return.
- Schedule 1, Combined Report [Excel]
- Schedule 2, Apportionment Factors Computation [Excel]
- Schedule 3, Interest Expense Offset for Tax – Exempt Interest Income [Excel]
Schedule 4, Capital and Section 1231 Gains & Losses [Excel];
- Schedule 5, Reconciliation of Income (Loss) per Book with Income (Loss) per Return [Excel]
- Schedule 6, Analysis of Unappropriated Retained Earnings per Books [Excel]
- Schedule 7, Computation of Cost of Goods Sold [Excel]
- Schedule 8, Computation of Dividends [Excel]
- Schedule 9, Computation of Gross Rental Income [Excel]
- Schedule 10, FAS 109 Deferred Tax Accounts [Excel]
- Worldwide Combined Reporting Election Form [PDF]
- Unitary Combined Group Members’ Schedule [PDF]
- Notices Regarding Combined Reporting
- Private Letter Rulings
- DC Tax Office Issues Final Combined Reporting Regulations, September 17, 2012 [PDF]
- DC Tax Office Provides Additional Guidance on Combined Reporting, September 11, 2012 [PDF]
- DC Tax Office Issues New Proposed Combined Reporting Regulations, September 4, 2012 [PDF]
- Issues Remain with DC Combined Reporting Regs, Practitioners Say, May 30, 2012 [PDF]
- DC Official Responds to Practitioners' Combined Reporting Concerns, February 6, 2012 [PDF]
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