Browse Arkansas Code titles and sections
26-51-805. Consolidated corporate returns.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-805. Consolidated corporate returns.
(a)(1) All corporations which are eligible members of an affiliated group as that term is defined in 26 U.S.C. § 1504(a) and (b) as of January 1, 1989, which affiliated group files a federal consolidated corporate income tax return pursuant to 26 U.S.C. §§ 1501 — 1505 as of January 1, 1989, may elect to file a consolidated Arkansas corporate income tax return.
(2) However, only corporations in the affiliated group that have gross income from sources within the State of Arkansas that is subject to taxation under the provisions of the Income Tax Act of 1929, § 26-51-101 et seq., shall be eligible to file consolidated corporate income tax returns in Arkansas.
(b)(1) All corporations in the affiliated group which are eligible to file an Arkansas consolidated income tax return must consent to, and join in, the filing of the consolidated return prior to the last day for filing the return, as may be extended.
(2) The making of the consolidated income tax return shall be deemed as consent of each eligible corporation in the affiliated group.
(c) When filing an Arkansas consolidated corporate income tax return, a complete copy of the federal consolidated corporate income tax return filed with the Internal Revenue Service for that taxable year must be attached to the Arkansas return.
(d)(1) The election to file an Arkansas consolidated corporate income tax return for any income year shall require the filing of consolidated corporate income tax returns for all subsequent income years so long as the individual corporations remain members of the affiliated group unless the Secretary of the Department of Finance and Administration consents to the filing of separate returns by any members of the affiliated group.
(2) However, in
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-805
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-51-805
Source file: gov.ar.code.title.26.odt
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Passage SHA-256: bc779e4aab94446f9d21fdbcbbb4aaa0d60ba45543bf0cf1c687c9e4e882c30f
Source location: content.xml paragraph 14455
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26-51-805. Consolidated corporate returns.
(a)(1) All corporations which are eligible members of an affiliated group as that term is defined in 26 U.S.C. § 1504(a) and (b) as of January 1, 1989, which affiliated group files a federal consolidated corporate income tax return pursuant to 26 U.S.C. §§ 1501 — 1505 as of January 1, 1989, may elect to file a consolidated Arkansas corporate income tax return.
(2) However, only corporations in the affiliated group that have gross income from sources within the State of Arkansas that is subject to taxation under the provisions of the Income Tax Act of 1929, § 26-51-101 et seq., shall be eligible to file consolidated corporate income tax returns in Arkansas.
(b)(1) All corporations in the affiliated group which are eligible to file an Arkansas consolidated income tax return must consent to, and join in, the filing of the consolidated return prior to the last day for filing the return, as may be extended.
(2) The making of the consolidated income tax return shall be deemed as consent of each eligible corporation in the affiliated group.
(c) When filing an Arkansas consolidated corporate income tax return, a complete copy of the federal consolidated corporate income tax return filed with the Internal Revenue Service for that taxable year must be attached to the Arkansas return.
(d)(1) The election to file an Arkansas consolidated corporate income tax return for any income year shall require the filing of consolidated corporate income tax returns for all subsequent income years so long as the individual corporations remain members of the affiliated group unless the Secretary of the Department of Finance and Administration consents to the filing of separate returns by any members of the affiliated group.
(2) However, in the event that the General Assembly amends or supplements the Income Tax Act of 1929, § 26-51-101 et seq., in a manner which would substantially alter the method of allocating or apportioning net income or loss subject to the Income Tax Act of 1929, § 26-51-101 et seq., or in computing the tax due from the affiliated group, then the affiliated group may revoke the election to file an Arkansas consolidated corporate income tax return effective for the income year to which any such change to the Income Tax Act of 1929, § 26-51-101 et seq., is effective.
(e) In any case of two (2) or more corporations, whether or not affiliated, owned, or controlled directly or indirectly by the same interests, the secretary may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among such corporations if he or she determines that the distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income to any such corporation. This subsection is based upon the concept of 26 U.S.C. § 482 as of January 1, 1989, as that section applies to corporations.
(f) In computing Arkansas consolidated taxable income or loss to which the tax rate is applied, the separate net income or loss of each corporation which is entitled to be included in the affiliated group shall be included in the consolidated net income or loss to the extent that its net income or loss is separately apportioned or allocated to the State of Arkansas in accordance with the provisions of the Uniform Division of Income for Tax Purposes Act, § 26-51-701 et seq.
(g) This section is specifically designed to clarify the filing of consolidated corporate income tax returns with the Revenue Division of the Department of Finance and Administration and is to amend the Income Tax Act of 1929, § 26-51-101 et seq. This section is based upon the concept of filing federal consolidated income tax returns.
Cross-references
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Federal law — U.S. Code and appendices · legal_authorities
An affiliated group of corporations shall, subject to the provisions of this chapter, have the privilege of making a consolidated return with respect to the income tax imposed by chapter 1 for the taxable year in lieu of separate returns. The making of a consolidated return shall be upon the condition that all corporations which at any time during the taxable year have been members of the affiliated group consent to all the consolidated return regulations prescribed under section 1502 prior to the last day prescribed by law for the filing of such return. The making of a consolidated return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated return shall include the income of such corporation for such part of the year as it is a member of the affiliated group.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1501
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 1501. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 2545
TITLE 26—INTERNAL REVENUE CODE
§ 1502
1 Section numbers editorially supplied.
CHAPTER 6—CONSOLIDATED RETURNS
Subchapter
Sec.1
A.
Returns and Payment of Tax .................
1501
B.
Related Rules ........................................
1551
Subchapter A—Returns and Payment of Tax
Sec.
1501.
Privilege to file consolidated returns.
1502.
Regulations.
1503.
Computation and payment of tax.
1504.
Definitions.
1505.
Cross references.
§ 1501. Privilege to file consolidated returns
An affiliated group of corporations shall, sub-
ject to the provisions of this chapter, have the
privilege of making a consolidated return with
respect to the income tax imposed by chapter 1
for the taxable year in lieu of separate returns.
The making of a consolidated return shall be
upon the condition that all corporations which
at any time during the taxable year have been
members of the affiliated group consent to all
the consolidated return regulations prescribed
under section 1502 prior to the last day pre-
scribed by law for the filing of such return. The
making of a consolidated return shall be consid-
ered as such consent. In the case of a corpora-
tion which is a member of the affiliated group
for a fractional part of the year, the consoli-
dated return shall include the income of such
corporation for such part of the year as it is a
member of the affiliated group.
(Aug. 16, 1954, ch. 736, 68A Stat. 367.)
§ 1502. Regulations
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 cor-
poration in the group, both during and after the
period of affiliation, may be returned, deter-
mined, computed, assessed, collected,
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1501
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 1501. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Affiliated group defined** For purposes of this subtitle—
(1) **In general** — The term “affiliated group” means—
(A) 1 or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation, but only if—
(B)
(i) the common parent owns directly stock meeting the requirements of paragraph (2) in at least 1 of the other includible corporations, and
(ii) stock meeting the requirements of paragraph (2) in each of the includible corporations (except the common parent) is owned directly by 1 or more of the other includible corporations.
(2) **80-percent voting and value test** — The ownership of stock of any corporation meets the requirements of this paragraph if it—
(A) possesses at least 80 percent of the total voting power of the stock of such corporation, and
(B) has a value equal to at least 80 percent of the total value of the stock of such corporation.
(3) **5 years must elapse before reconsolidation**
(A) *In general* — If—
(i) a corporation is included (or required to be included) in a consolidated return filed by an affiliated group, and
(ii) such corporation ceases to be a member of such group,
with respect to periods after such cessation, such corporation (and any successor of such corporation) may not be included in any consolidated return filed by the affiliated group (or by another affiliated group with the same common parent or a successor of such common parent) before the 61st month beginning after its first taxable year in which it ceased to be a member of such affiliated group.
(B) *Secretary may waive application of subparagraph (A)* — The Secretary may waive the application of subparagraph (A) to any corporation for any period subjec
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1504
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 1504. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 2550
TITLE 26—INTERNAL REVENUE CODE
§ 1504
Amendment by section 1052(c)(5) of Pub. L. 94–455 ef-
fective with respect to taxable years beginning after
Dec. 31, 1979, see section 1052(d) of Pub. L. 94–455, set
out as a note under section 170 of this title.
Amendment by section 1507(b)(3) of Pub. L. 94–455 ap-
plicable to taxable years beginning after Dec. 31, 1980,
see section 1507(c) of Pub. L. 94–455, set out as a note
under section 1504 of this title.
Amendment by section 1901(b)(1)(Y) of Pub. L. 94–455
applicable with respect to taxable years beginning after
Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set
out as a note under section 2 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Pub. L. 88–272, title II, § 234(c), Feb. 26, 1964, 78 Stat.
116, provided that: ‘‘The amendments made by sub-
sections (a) and (b) [amending this section and sections
12, 172, 904, 1341, 1552, and 7701 of this title] shall apply
with respect to taxable years beginning after December
31, 1963.’’
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86–780 applicable to taxable
years beginning after Dec. 31, 1960, see section 4 of Pub.
L. 86–780, set out as a note under section 904 of this
title.
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L.
101–508 be construed to affect treatment of certain
transactions occurring, property acquired, or items of
income, loss, deduction, or credit taken into account
prior to Nov. 5, 1990, for purposes of determining liabil-
ity for tax for periods ending after Nov. 5, 1990, see sec-
tion 11821(b) of Pub. L. 101–508, set out as a note under
section 45K of this title.
§ 1504. Definitions
(a) Affiliated group defined
For purposes of this subtitle—
(1) In general
The term ‘‘affiliated group’’ m
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1504
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 1504. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
In any case of two or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the United States, and whether or not affiliated) owned or controlled directly or indirectly by the same interests, the Secretary may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among such organizations, trades, or businesses, if he determines that such distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades, or businesses. In the case of any transfer (or license) of intangible property (within the meaning of section 367(d)(4)), the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible. For purposes of this section, the Secretary shall require the valuation of transfers of intangible property (including intangible property transferred with other property or services) on an aggregate basis or the valuation of such a transfer on the basis of the realistic alternatives to such a transfer, if the Secretary determines that such basis is the most reliable means of valuation of such transfers.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 482
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 482. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1657
TITLE 26—INTERNAL REVENUE CODE
§ 483
made within six months after Sept. 2, 1958. Claims for
refunds of overpayments of tax resulting from the elec-
tion were to be filed within one year after the date of
the election. Such an election was to be considered a
consent to an assessment of a deficiency resulting from
the election, where the assessment is made within one
year after the date of the election.
§ 482. Allocation of income and deductions
among taxpayers
In any case of two or more organizations,
trades, or businesses (whether or not incor-
porated, whether or not organized in the United
States, and whether or not affiliated) owned or
controlled directly or indirectly by the same in-
terests, the Secretary may distribute, appor-
tion, or allocate gross income, deductions, cred-
its, or allowances between or among such orga-
nizations, trades, or businesses, if he determines
that such distribution, apportionment, or allo-
cation is necessary in order to prevent evasion
of taxes or clearly to reflect the income of any
of such organizations, trades, or businesses. In
the case of any transfer (or license) of intangible
property
(within
the
meaning
of
section
367(d)(4)), the income with respect to such trans-
fer or license shall be commensurate with the
income attributable to the intangible. For pur-
poses of this section, the Secretary shall require
the valuation of transfers of intangible property
(including intangible property transferred with
other property or services) on an aggregate basis
or the valuation of such a transfer on the basis
of the realistic alternatives to such a transfer, if
the Secretary determines that such basis is the
most reliable means of valuation of such trans-
fers.
(Aug. 16, 1954, ch. 736, 68A Stat.
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 482
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 482. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-101. Title.
This act shall be known and may be cited as the “Income Tax Act of 1929”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-101
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-701. Definitions.
As used in this Act, unless the context otherwise requires:
(a) “Business income” means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.
(b) “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed.
(c) “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(d) [Repealed.]
(e) “Nonbusiness income” means all income other than business income.
(f) “Public utility” means any business entity which owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products, or gas.
(g) “Sales” means all gross receipts of the taxpayer not allocated under §§ 26-51-704 — 26-51-708.
(h) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-701
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-701. This identifies an authority to review, not proof of applicability.