D.C. Mun. Regs. tit. 9, r. 9-157

Current through Register 71, No. 45, November 7, 2024

Rule 9-157 - COMBINED REPORTING: COMPOSITION OF COMBINED GROUP

157.1

General rule. Where a person subject to tax under chapter 18 of title 47 of the D.C. Official Code is engaged in a unitary business with one or more other persons that are related by common ownership, the taxpayer member must determine its tax liability based upon the income and apportionment information of all persons included in the combined group using a combined report unless it is an excluded person under 9 DCMR § 157.3.

157.2Included persons. Persons that are required to be included in a combined group and therefore required to be included in a combined report filed by the designated agent of a combined group shall include all persons of the kind that are subject to tax or would be subject to tax if doing business in the District, under chapter 18 of title 47 of the D.C. Official Code, even if those persons do not have nexus. The persons to be included in a combined group include, but are not limited to, any unincorporated business, financial institution, utility company, transportation company, S corporation as defined in I.R.C. § 1361(a), a real estate investment trust (REIT) as referenced under I.R.C. §§ 856 through 859, and a regulated investment company (RIC) as referenced under I.R.C. §§ 851 through 855.

157.3

Excluded persons. Persons that are not included in a combined group and therefore not included in a combined report filed thereby, irrespective of whether they are engaged in a unitary business with a member of such group, include, unless such persons are otherwise required to be included under D.C. Official Code § 47-1805.02 a: any insurance company subject to premium tax under D.C. Official Code § 47-2608 (2005 Repl.) or § 31-3403.01 (2005 Repl.) exempt organization including an organization that has unrelated business income subject to tax under I.R.C. § 511; Qualified High Technology Company (QHTC); person, regardless of the place incorporated or formed, if the average of its property, payroll, and sales factors outside the U.S. is eighty percent or more; or as otherwise provided in chapter 18 of title 47 of the D.C. Official Code.

D.C. Mun. Regs. tit. 9, r. 9-157

Final Rulemaking published at 59 DCR 10875, 10878 (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.