Section 9-175. COMBINED REPORTING: FINANCIAL ACCOUNTING STANDARDS NO. 109 (FAS 109) DEDUCTION

 

175.1Eligibility.  If the enactment of combined reporting requirements for unitary businesses in the District results in an increase to a combined group's net deferred tax liability, the combined group is entitled to a FAS 109 deduction.  “Net deferred tax liability” is defined as the net increase, if any, in deferred tax liabilities minus the net increase, if any, in deferred tax assets of the combined group, as computed in accordance with Generally Accepted Accounting Principles (GAAP) that would otherwise result from the imposition combined reporting in the District.  Only companies that were publicly traded as of January 1, 2011 and that prepare their financial statements in accordance with GAAP qualify for the FAS 109 deduction.  The term “publicly traded company” shall mean a company whose stock is publicly traded; a privately held company that issues publicly traded debt is not eligible for the FAS 109 deduction.

 

175.2Timing of the deduction. The FAS 109 deduction shall be claimed annually over a seven (7)-year period beginning with the combined group’s taxable year that begins in 2015 equal to one-seventh (1/7) of the deduction amount. 

 

175.3Filing requirements. Any taxpayer intending to claim the FAS 109 deduction shall file a form with the group’s combined report with the Chief Financial Officer on or before the due date for the 2012 District franchise tax returns, specifying the total amount of the deduction which the taxpayer claims.  This rule does not limit the authority to the Chief Financial Officer to review or redetermine the proper amount of any deduction claimed, whether on the form required or on a tax return for any taxable year.

 

175.4Recordkeeping requirements. To facilitate review and potential audit of the taxpayer’s form and any claimed deduction, a taxpayer shall maintain records and workpapers necessary to support the calculation and journal entries identified for the full length of taxable years in which the deduction may be claimed, and all additional periods of time for which such taxable years may be subject to audit or adjustment.

 

 

authority

The Deputy Chief Financial Officer of the District of Columbia Office of Tax and Revenue (OTR) of the Office of the Chief Financial Officer, pursuant to the authority set forth in D.C. Official Code § 47-1335 (2005 Repl.), section 201(a) of the 2005 District of Columbia Omnibus Authorization Act, approved October 16, 2006 (120 Stat. 2019; P.L. 109-356, D.C. Official Code § 1-204.24d (2012 Supp.)) of the Home Rule Act, and the Office of the Chief Financial Officer Financial Management and Control Order No. 00-5, effective June 7, 2000.

source

Final Rulemaking published at 59 DCR 10875, 10898 (September 14, 2012).