Additional Schedules for Combined Reporting for Affiliated Groups Engaged in Unitary Business
Starting in 2014, unitary groups file Form CO-411, Corporate Income Tax Return. The CO-411U has been discontinued. Each return package will have a BA-402, Apportionment & Allocation Schedule Instructions which reports the PVC’s apportionment percentage, and carries forward to Line 6 of the CO-411. The tax calculation for the PVC occurs on Form CO-411, Lines 6 through 17, comparable to the CO-421.
For each additional taxable affiliate, calculate tax by preparing a BA-402 and CO-421, Unitary Affiliate Schedule. This process is unchanged from prior years.
Total tax due for the group is the sum of CO-411, Line 16 (the tax for the PVC) and all CO-421s, Lines 11 (tax for each additional taxable affiliate). This total amount is reported on CO-411, Line 18. A properly prepared combined report for unitary group will contain one fewer Schedule CO-421 than Schedule BA-402, because the apportionment percentage from the first BA-402 and tax calculation for the PVC will be reported on the CO-411.
- Schedule CO-421 Unitary Affiliate Schedule: Required of each affiliate taxpayer (other than the PVC) filing unitary combined returns to determine the separate VT tax of each group member. (Schedule CO-421 is not required for members of the group that have elected to be treated as a consolidated filer, as tax will be calculated on the CO-411.) Separate attributes, such as apportionment of group income, credits and incentives, net operating loss deductions, and allocated non-business income are accounted for on this schedule. The amount of tax due for each affiliate carries through to the Form CO-411.
- Schedule CO-419 Apportionment of Foreign Dividends: Used by unitary-combined filers (if applicable) to determine the amount of apportioned foreign dividends taxable to the State of Vermont. Prepare CO-419 for the PVC, and for every taxable affiliate in the group. CO-419(s) is/are not necessary if there were no taxable foreign dividends paid into the group, or if modified apportionment and factor.