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!!