| Notice Filed with SOS |
04/12/2017 |
| Rule |
ProposedRuleAttach2017-00145.doc |
| Additional Information |
AddInfoAttach2017-00145.doc |
| Statutory Authority |
The statutory basis for this rule is §39-21-112(1) and §39-22-305, C.R.S. |
| Description of Subjects/Issues |
The purpose of the amendment to this rule is to clarify that a taxpayer must meet 1) state law, 2) U.S. constitutional standards, and 3) federal statutory preemption standards. The constitutional standard of “substantial nexus” is taken from Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, 279 (1977). The amendment also clarifies the process for making a consolidated election and withdrawing a consolidated election. In addition, the rule follows the standards established in Treas. Reg. (26 C.F.R.) § 301.9100-3 to allow relief to taxpayers who provide evidence to establish that the taxpayer acted reasonably and in good faith when it failed to make an election in the allotted timeframe. Lastly, the amendment removes unnecessary language dealing with the filing of a combined report and instead includes language that expressly states that those who are required to file a combined report may also make a consolidated return election to include the combined report in the consolidated return. |
| Purpose/Objective of Rule |
The purpose of the amendment to this rule is to clarify that a taxpayer must meet 1) state law, 2) U.S. constitutional standards, and 3) federal statutory preemption standards. The constitutional standard of “substantial nexus” is taken from Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, 279 (1977). The amendment also clarifies the process for making a consolidated election and withdrawing a consolidated election. In addition, the rule follows the standards established in Treas. Reg. (26 C.F.R.) § 301.9100-3 to allow relief to taxpayers who provide evidence to establish that the taxpayer acted reasonably and in good faith when it failed to make an election in the allotted timeframe. Lastly, the amendment removes unnecessary language dealing with the filing of a combined report and instead includes language that expressly states that those who are required to file a combined report may also make a consolidated return election to include the combined report in the consolidated return. |
| Basis And Purpose |
BasisAndPurposeAttachment2017-00145.doc
|
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
05/17/2017 |
| Hearing Time |
09:00 AM |
| Hearing Location |
1375 Sherman Rm 127 |
| Contact Name |
Phil Horwitz |
| Contact Title |
Director, Tax Policy Analysis |
| Contact Telephone |
303.205.8422 |
| Contact email |
phillip.horwitz@state.co.us |