Did previously granted permission to stop filing Florida consolidated returns remain valid after the actual taxable-income difference exceeded the estimate?

Plain-English summary

The parent's prior permission to stop filing Florida consolidated returns remained effective. Its completed return showed a larger difference between separate and consolidated pro forma taxable income than the estimate supplied with the original request.

The company disclosed the corrected amount and explained the difference. After considering that new information, the Department did not withdraw or modify the deconsolidation approval.

What this means for you

A variance from an estimate did not automatically invalidate this approval, but prompt disclosure and Department review mattered. The ruling was a confirmation tied to the previously granted permission and the corrected facts.

Common questions

Q: Did the larger actual income difference cancel approval? No.

Q: Did the taxpayer notify the Department? Yes.

Q: Did the ruling grant deconsolidation for the first time? No. It confirmed that the earlier permission remained effective.

Citations and references

• Fla. Stat. § 220.131 — Florida consolidated-return election
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01C1-014

Original ruling text

SUMMARY

QUESTION: The actual taxable income computed for Florida
corporate income tax purposes differed from the amounts
presented in the TAA requesting permission to discontinue
filing consolidated returns. Does the permission to
deconsolidate, which was previously granted, remain
effective even though the taxable income amounts presented
in the TAA differed from the actual amount computed in
preparing the Florida corporate income tax return?

ANSWER - Based on Facts Below: - Yes. The parent company
was granted permission to cease filing Florida consolidated
tax returns and that permission remains effective, even
after consideration of the difference in taxable income, as
stated in the TAA request, and the amount actually computed
in preparing the Florida corporate income tax return.

Dec 10, 2001

Re: Technical Assistance Advisement 01C1-014
Corporate Income Tax - Consolidated Filing Election
s. 220.131, F.S.
XXX, hereinafter referred to as "A"

Dear :

Your letter of XX, requests a Technical Assistance Advisement
(TAA) addressing whether or not permission to cease filing
Florida corporate income tax returns on a consolidated basis,
given the taxpayer referenced above in XXX, is still effective
given that the difference in Florida taxable income, on a
separate and consolidated pro forma basis, was greater than
presented in the request for that TAA. This response to your
request constitutes a Technical Assistance Advisement under
Chapter 12-11, Florida Administrative Code, and is issued to you
under the authority of s. 213.22, Florida Statutes.

FACTS

"A" received permission to cease filing its Florida corporate
income tax returns on a consolidated basis in XXX, dated
September 11, 2001. One criterion for granting the request to
file future returns on a deconsolidated basis was that "the
difference in taxable income, on a separate and consolidated pro
forma basis,... is approximately XX...." When "A" completed its
corporate income tax returns for the tax year in question, it
was found that the actual difference in taxable income, on a
separate and consolidated pro forma basis was, in fact, XXX.
The difference in these two amounts is attributable to XXX.

LAW

Law relevant to this discussion was presented in XXX, dated XX.

DISCUSSION

Thank you for notifying us of the difference in taxable income
from that presented in the request for XX, and the actual amount
of XX. Permission to cease filing Florida corporate income tax
returns on a consolidated basis, which was granted to "A" in XX,
remains effective, even after giving consideration to this new
information.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
based on those facts and specific situation summarized above.
You are advised that subsequent statutory or administrative rule
changes or judicial interpretations of the statutes or rules
upon which this advice is based may subject similar future
transactions to a different treatment than expressed in this
response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Confidential information must be

deleted before public disclosure. In an effort to protect
confidentiality, we request you provide the undersigned with an
edited copy of your request for Technical Assistance Advisement,
the backup material and this response, deleting names, addresses
and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department
within 15 days of the date of this letter.

Sincerely,

Suzanne C. Paul
Technical Assistance and
Dispute Resolution

SCP/
Control No.: 47518