CCH Learning Center

Description:
This course discusses state combined reporting methodologies, the concept of a unitary business, and the difference between combined unitary reporting and consolidated returns. The essential idea of the unitary business principle is that, to effectively tax a business enterprise whose operations span numerous states, all of the activities constituting a single trade or business must be viewed as a whole, rather than as separate activities, conducted in a given taxing state.

Even if a business enterprise structures its in-state and out-of-state operations as separately incorporated affiliates rather than as separate divisions of the same corporate entity, a state can require the affiliates to apportion their income on a combined basis if the out-of-state affiliates conduct a unitary business with the in-state affiliates The following topics are covered in this course:

• Combined Unitary Reporting vs Consolidated Returns
• Mandatory vs Discretionary Combined Reporting
• Worldwide vs Water’s-Edge Combined Reporting
• Concept of a Unitary Business