04-18 Amend Municipal Net Profit Taxes 128.22 - 128.2215

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(c) The tax commissioner may adopt rules establishing the following (1) The format of documents to be used by taxpayers to file returns and make payments by electronic means; (2) The information taxpayers must submit when filing tax returns by electronic means. 128.2206 CONSOLIDATED RETURNS. (a) As used in this section: (1) "Affiliated group of corporations" means an affiliated group as defined in section 1504 of the Internal Revenue Code, except that, if such a group includes at least one incumbent local exchange carrier that is primarily engaged in the business of providing local exchange telephone service in this state, the affiliated group shall not include any incumbent local exchange carrier that would otherwise be included in the group. (2) "Consolidated federal income tax retain" means a consolidated return filed for federal income tax purposes pursuant to section 1501 of the Internal Revenue Code. (3) "Consolidated federal taxable income" means the consolidated taxable income of an affiliated group of corporations, as computed for the purposes of filing a consolidated federal income tax return, - before consideration of net operating losses or special deductions. "Consolidated federal taxable income" does not include income or loss of an incumbent local exchange carrier that is excluded from the affiliated group under subsection (a)(1) of this section. (4) "Incumbent local exchange carrier" has the same meaning as in section 4927.01 of the Revised Code. (5) "Local exchange telephone service" has the same meaning as in section 5727.01 of the Revised Code. (b)(1) A taxpayer that is a member of an affiliated group of corporations may elect to file a consolidated tax return for a taxable year if at least one member of the affiliated group of corporations is subject to municipal income tax in that taxable year and if the affiliated group of corporations filed a consolidated federal income tax return with respect to that taxable year. The election is binding for a five -year period beginning with the first taxable year of the initial election unless a change in the reporting method is required under federal law. The election continues to be binding for each subsequent five -year period unless the taxpayer elects to discontinue filing consolidated tax returns under subsection (b)(2) of this section or a taxpayer receives permission from the tax commissioner. The tax commissioner shall approve such a request for good cause shown. (2) An election to discontinue filing consolidated tax returns under this section must be made on or before the fifteenth day of the fourth month of the year following the last year of a five -year consolidated tax return election period in effect under subsection (b)(1) of this section. The election to discontinue filing a