OAR 150-317-1022: Unitary Group Tax Year

(1) Effective Date. The provisions of this rule apply to tax years beginning on or after January 1, 2021. (2) Annual Accounting Period. A taxpayer’s method of accounting for commercial activity, costs inputs and labor costs for a tax year shall be the same as the taxpayer’s method of accounting for federal income tax purposes for the taxpayer’s federal tax year that includes the tax year. For a unitary group: (a) If all members of the unitary group use the same annual accounting period for federal income tax purposes, the unitary group’s tax year is the annual accounting period used by all members for federal income tax purposes under section 441 of the Internal Revenue Code. (b) If the unitary group includes members with different accounting periods and two or more members of the unitary group file a federal consolidated return, the unitary group’s tax year is the annual accounting period of the federal consolidated group under section 441 of the Internal Revenue Code. (c) In all other instances, the unitary group’s tax year is the accounting period used by the unitary group’s designated reporting entity. (3) Members with Different Annual Accounting Periods. (a) If a member’s annual accounting period for federal income tax purposes differs from the annual accounting period of the unitary group, the member will determine the portion of that member’s taxable commercial activity under ORS 317A.100(16) to be included by preparing a separate statement based on federal income tax reporting methods for the member’s accounting period that includes the unitary group’s tax year. The statement must be made available to the department upon request of the department. (b) If the unitary group has more than one federal consolidated group and a consolidated group’s accounting period under section 441 of the Internal Revenue Code differs from the unitary group’s designated reporting entity, the consolidated group will determine the portion of taxable commercial activity under ORS 317A.100(16) to be included by preparing a separate statement based on federal income tax reporting methods for the consolidated group’s accounting period that includes the designated reporting entity’s tax year. The statement must be made available to the department upon request of the department. [ Publications: C ontact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).]