Nov 20, 2017
From KPMG TaxWatch
Under Connecticut law, if the adoption of combined reporting, which became effective for tax years beginning on or after January 1, 2016, resulted in certain conditions, the combined group was entitled to a deduction against net income to offset the financial statement impact. Publicly- traded companies were required to file a Statement of Net Deferred Tax Liability Deduction on or before July 3, 2017 to preserve the right to take the deduction. The deduction was originally scheduled to be taken over a seven-year period beginning with the combined group’s income year that commenced in 2018. Under recently-enacted legislation, the period over which the deduction can be taken was extended to thirty years. In addition, Senate Bill 1503 has been sent to the Governor. If signed, this bill would further revise the law to make 2021 (rather than 2018) the first tax year the deduction would be allowed to be claimed by combined groups. Please contact Steve Kralik at 860-297-5431 with questions.
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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.