Utah Admin. Code R865-6F-22 - Treatment of Loss Carrybacks and Carryforwards Spanning a Change in Reporting Methods Pursuant to Utah Code Ann. Sections 59-7-402 and 59-7-403
A. For purposes of
this rule, "worldwide year" means a year in which a corporation filed a
worldwide combined report as set forth in Sections
59-7-101(34) and
59-7-403.
B. For purposes of this rule, "water's edge
year" means a year in which a corporation filed a combined report as set forth
in Sections
59-7-101(33) and
59-7-402.
C. A corporation that receives permission
from the Tax Commission to change its filing method to the water's edge method
after having elected the worldwide method will be required to forfeit any
unused loss carryovers that were generated in any worldwide year as a condition
precedent to making that change. Any losses generated in a subsequent water's
edge year may not be carried back against income earned in any year prior to
the change to the water's edge method, but must be carried to a post-change
water's edge year.
D. A corporation
that elects the worldwide filing method subsequent to adoption of this rule
will be required to forfeit any unused loss carryovers that were generated in
any water's edge year. Any losses generated in a subsequent worldwide year may
not be carried back against income earned in any year prior to the change to
the worldwide election method, but must be carried to a post-change worldwide
year.
Notes
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