The Rhode Island Division of Taxation has released a proposed corporate income tax rule for the pro forma combined reporting requirement that is in effect for tax returns filed for tax years beginning after 2010 but before 2013. The pro forma combined reporting requirement was previously reported. (TAXDAY, 2011/07/06, S.51) For C corporations, state law requires single entity reporting. The combined report is not an actual tax return; instead, it will supplement Form RI-1120C, Business Corporation Tax Return. Among others, S corporations, partnerships, disregarded entities, banks and insurance companies are not required to file a combined report.
The proposed rule provides relevant definitions and addresses a number of other topics, including the election to use a federal consolidated group, combined net income, designated agents, filing reports, penalties, and the treatment of NOLs, credits, and rate reductions. Numerous examples are also provided.
Public comments are due by November 29, 2011.
Proposed Reg. CT 11-15, Rhode Island Division of Taxation, released October 28, 2011