Ohio Admin. Code 5703-29-08 - Request for member of a combined taxpayer group to file separately

(A) This rule provides the procedure that a member of a combined taxpayer group under section 5751.012 of the Revised Code must needs to follow to file as a separate taxpayer and not as part of the combined group.

(B)

(1) A member that is not the reporting person of a combined taxpayer group, together with the reporting person of the group, may contact the tax commissioner and request approval that the member be allowed to file separately from the group. For the member to file separately, the member and the reporting person must need to agree to all of the following:

(a) The member will not claim any of the group's annual exclusion amount of one million dollars, and is not entitled to claim its own annual one million dollar exclusion amount. For calendar years prior to 2024, the exclusion amount is one million dollars. For calendar year 2024, the exclusion amount is three million dollars. For calendar year 2025 and thereafter, the exclusion amount is six million dollars.

(b) The member will file as a separate taxpayer and will be subject to the applicable tax rate on all of the member's taxable gross receipts. For example, for the period July 1, 2015 through September 30, 2015, if a member had thirty thousand dollars of taxable gross receipts, the tax would be seventy-eight dollars, the rate of twenty-six one hundredths percent times the entire thirty thousand dollars of taxable gross receipts.

(c) The member is financially sound and currently able to pay the commercial activity tax and other obligations as determined by the commissioner.

(d) The member remains jointly and severally liable for the group's tax liability.

(2) The commissioner shall will provide a copy of the commissioner's written denial or approval to both the member requesting to file separately and to the reporting person of the combined taxpayer group. If approved, the separate filing shall will start at the beginning of the next tax period for the combined taxpayer. The commissioner, upon request, may grant special approval for the separate filing to begin with the current tax period.

(3) The commissioner may prescribe a form to apply to file separately from the group as provided by this rule.

(C) The commissioner may revoke separate filing approval at any time.

Notes

Ohio Admin. Code 5703-29-08

Effective: 12/21/2023
Five Year Review (FYR) Dates: 7/23/2026
Promulgated Under: 119
Statutory Authority: 5703.05
Rule Amplifies: 5751.012
Prior Effective Dates: 12/30/2005, 12/25/2016