Corporations that are members of an affiliated group of corporations, as defined in section 1504 of the federal Internal Revenue Code, must determine whether to file separate returns, a consolidated return, a combined return, or a combined/consolidated return. Review the Corporate Income Tax Guide for additional information.
Filing Information
Separate Filing
This designation is for a single corporation, regardless of its membership in an affiliated group. A single corporation cannot use this filing alternative if it elects to be part of a consolidated return or if it is required to be included in a combined filing.
Consolidated Filing
This designation is for members of an affiliated group of C corporations, as defined by section 1504 of the Internal Revenue Code. However, only those members doing business in Colorado, as defined in Regulation 39-22-301.1, can be included in the consolidated return. This filing alternative is binding for four years and requires consent of the Colorado members of the group. Filing such a return shall be deemed consent.
Combined Filing
This designation is for members of an affiliated group of C corporations, as defined by §39-22- 303(12), C.R.S., that meet at least three of the six-part intercompany business relationship tests for this year and the preceding two years. This is a required filing alternative.
Combined/Consolidated
This designation is for group of C corporations including some members required to file a combined report and other members not required to be included in the combined report, but electing to be included in a consolidated filing along with those members included in the combined report.