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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Do these states below require ("a must") for a corporation

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Do these states below require ("a must") for a corporation to file a consolidated state tax return? 1. Colorado; 2. Kansas; 3. Montana; 4. Utah
Fact: A corporation with 4 other sister companies doing a similar line of business (customer service) and are owned by one single parent company. Do these 5 corporation be forced to file a consolidated state return for the above states? Only 1 company has nexus in those states.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

For Colorado, you would file an election to file a consolidated return, which would be binding for four years. This means that filing a consolidated return is not a must. CLICK HERE to read about the election to file a consolidated return.

Megan C :

In Kansas, "If two or more corporations file a Federal Income Tax return on a consolidated basis, and if each of such

corporations derive all of their income and expenses from sources within Kansas, they must file a consolidated

return for Kansas income tax purposes." So, if there is no nexus in Kansas, no requirement to file a consolidated return. CLICK HERE for more details
Megan C :

In Montana, you cannot file a consolidated return unless you are a unitary business unit, and one of the requirements to be met as such is that the companies operate exclusively in Montana. CLICK HERE for more details.

Megan C :

In Utah, you would file a "waters edge combined report" if a unitary group. You are not a unitary group unless you are interdependent of each other. If the companies are not interdependent, then no need to file a consolidated return. You can read about unitary groups, HERE and about consolidated reporting, HERE

Megan C :

So, it looks like consolidated returns are not required in each of these four states. Please refer to the sources I provided and let me know if you need any additional assistance.

Megan C :

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Megan C :

Is there anything additional that you need assistance with?


Thank you very much for your answers above. Exactly what I was looking for!

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Customer: replied 3 years ago.

Thank you.

Customer: replied 3 years ago.

Sorry: I have 2 more states to ask you: How about AK and ND?

Hello, Kendrick

For Alaska, "If this taxpayer and one or more other Alaska taxpayers are included in a consolidated federal return, these same taxpayers must file a consolidated Alaska return if they are members of the same unitary group. If the federal common parent is not an Alaska taxpayer, identify the common parent on Schedule B, question 2." See HERE

For ND, You do not have to file a consolidated return, either. See HERE

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