North Carolina and Virginia Provide Guidance and Opportunity?
Before you head-off to enjoy Thanksgiving, I thought I would pass along a couple of developments that may impact your company.
North Carolina Development
North Carolina issued Directive CD-11-01 regarding the Secretary's Authority to Adjust the Net Income of a Corporation or to Require a Corporation to File a Combined Return.
The Directive is in relation to the new legislation that takes effect January 1, 2012. It provides guidance regarding how North Carolina will address tax years beginning before and after January 1, 2012.
In a recent Virginia Ruling (P.D. 11-181), a taxpayer that filed a consolidated corporate income tax return for federal tax purposes, but filed a separate return in Virginia, was allowed to take its proportional share of the Federal 199 Deduction (or domestic production activities deduction permitted under Internal Revenue Code Section 199) for Virginia income tax purposes.
If you have any questions or need assistance in applying either of these developments to your corporation's facts, please contact me.
Have a Great Thanksgiving with family, friends, turkey and football!!
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.