Tax News

CCH (cch.taxgroup.com) reports:

  An out-of-state corporation that had nexus with Florida was allowed to file a consolidated corporate income tax return. The corporation acquired, through a 100% stock purchase, an unrelated affiliated group of entities that, prior to the acquisition, filed consolidated returns in Florida. Immediately after the acquisition, the group of entities' new common parent was the out-of-state corporation. In order to initially elect to file Florida consolidated corporate income tax returns for the parent corporation's entire affiliated group, a parent company must have nexus with Florida. Having corporate officers who have permanent or extended temporary residency within the state, who make management decisions while residing in the state, creates nexus with Florida. The parent corporation's Assistant Secretary resided and worked in Florida. If a key officer of the corporation is residing within the state, management of the corporation is presumed to be occurring within the state. Therefore, the residency of the Assistant Secretary was sufficient to create nexus, and the parent corporation was permitted to file a consolidated Florida corporate income tax return.

Technical Assistance Advisement, No. 08C1-009 , Florida Department of Revenue, September 28, 2008, released March 13, 2009, ¶205-308

  Other References:

  Explanations at ¶11-545