Affirmation of consolidated return regulation authority.Sec. 1502 provides: The Secretary shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected, and adjusted, in such manner as to clearly reflect the income tax liability and the various factors necessary for the determination of such tax liability. New Law ACJA ACJA American Criminal Justice Association ACJA American Cookie Jar Association ACJA Alberta Criminal Justice Association ACJA Achyranthes japonica (Japanese chaff flower) ACJA Arkansas Criminal Justice Association Section 844 adds the following language to Sec. 1502: "In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns." AJCA AJCA American Jobs Creation Act of 2004 (US) AJCA American Jersey Cattle Association AJCA Association of Juvenile Compact Administrators AJCA All Japan Cooks Association AJCA Alabama Junior Cattlemen’s Association Section 844(b) further provides that, notwithstanding the above amendment, the loss duplication factor of Regs. Sec. 1.1502-20(c)(1)(iii), invalidated in Rite Aid Rite Aid (NYSE: RAD) is a United States retailer and pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid Corporation is one of the nation's leading drugstore chains. Corp., 255 F3d 1357 (Fed. Cir. 2001), continues to be inapplicable in·ap·pli·ca·ble adj. Not applicable: rules inapplicable to day students. in·ap "to the factual situation in Rite Aid." Effective Date AJCA Section 844 is effective for all years, whether beginning before, on or after Oct. 22, 2004. Implications In direct response to language in the Rite Aid decision suggesting otherwise, this amendment confirms that consolidated return regulations may provide rules treating corporations differently than they would be treated in a separate return context. It is not clear whether AJCA Section 844(b) applies only to the taxpayer in Rite Aid, or whether it applies to all similarly situated similarly situated adj. with the same problems and circumstances, referring to the people represented by a plaintiff in a "class action," brought for the benefit of the party filing the suit as well as all those "similarly situated. taxpayers. The Conference Report arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. suggests the latter. FROM KIRSTEN SIMPSON, WASHINGTON, DC |
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