Looking for a Massachusetts Form 355u Templates? Download it for free!

income of the non-U.S. corporations that are included in the combined group are determined

on a worldwide basis, and other specific rules apply. A combined group is not entitled to

make a worldwide election if it is making or is subject to a previously made affiliated group

election. See Regulation 830 CMR 63.32B.2 (5), (6) (c) 2.b for the rules that apply in the

context of a worldwide election.

Both the affiliated group election and the worldwide election can only be made on this form 355U,

when timely filed, by the combined group’s principal reporting corporation. Both elections are

irrevocable and binding on all members of the combined group, including the non-taxable

members and any corporations that subsequently enter the combined group, for the taxable year

in which the election is made and the next nine taxable years. See Regulation 830 CMR 63.32B.2

(5) (c), (10) (d)-(f).

Where a combined group makes either an affiliated group or a worldwide election, the principal

reporting corporation and all members of the group consent to the production of documents or

other information that the Commissioner reasonably requires, e.g., information required to verify

that the appropriate members of the combined group are included, that the requirements of the

election have been met, that the tax computation and tax reporting are proper, etc. In the case of

the worldwide election, the documents shall be provided in language and form acceptable to the

Commissioner.

Question 3. Check “Yes” if either the Affiliated Group Election or the Worldwide Election is

indicated on line 2 and this is the first year the election is in effect.

If the combined group is making the affiliated group election or a worldwide election, the principal

reporting corporation must at the time of the election prepare for itself and collect on behalf of

each group member a letter of consent, to be made available to the Commissioner upon request.

stating that the group member has agreed to the election and, also, further agrees (1) that such

election applies to any member that subsequently enters the group and (2) that each member

continues to be bound by the election in the event that such member is subsequently the subject

of a reverse acquisition as described in U.S. Treas. Reg. s. 1.1502-75(d) (3). After making the

election, the principal reporting corporation shall collect an identical consent from any member

that subsequently enters the group during the period in which the election is in effect.

Question 4. If any member of the group is requesting alternative apportionment under M.G.L. c.

63, s. 42, check “Yes” and submit Form AA-1 and the supporting materials under separate cover

(currently Form AA-1 cannot be filed electronically). In general, each taxable member of a

combined group is to determine its apportionment formula on Schedule U-MSI. If any member of

the combined group is seeking alternative apportionment, it must nonetheless complete Schedule

U-MSI by applying the statutory rules that apply to such taxpayer, and not by applying the

taxpayer’s proposed alternative apportionment approach. If the taxpayer’s proposed alternate

method is later accepted, a refund of any overpayment will be made.

Question 5. If this is an amended filing (including, for purposes of this question, a filing that is to

supersede a prior filing when both filings are made on or before the due date for the return),

check “Yes.” An amended filing must include all applicable forms and schedules, not just those

reporting a change from the previous submission.

An amended return may require additional action to ensure that the proper adjustment is reflected

on the Department’s records. In addition to electronically filing the amended return, a taxpayer

must separately file form CA-6 with an explanation of the changes reflected on the amended

return and the expected change to net tax if either of the following applies:

The tax shown on the amended return is a decrease from the amount of tax previously

reported.

The amended return is a 2

(or subsequent) amendment.

Instructions For Form 355u - Income Excise For Taxpayers Subject To Combined Reporting - 2012 Page 2

Related Articles

Related forms

Related Categories