{"data":{"id":"us-ky/krs-141.201","jurisdiction":"us-ky","citation":"KRS 141.201","heading":"Corporation returns -- Election of affiliated groups to file consolidated","body":"returns -- Taxable years beginning on or after January 1, 2019.\n(1) This section shall apply to taxable years beginning on or after January 1, 2019.\n(2) As used in this section:\n(a) \"Affiliated group\" means affiliated group as defined in Section 1504(a) of the\nInternal Revenue Code and related regulations;\n(b) \"Consolidated return\" means a Kentucky corporation income tax return filed\nby members of an affiliated group in accordance with this section;\n(c) \"Separate return\" means a Kentucky corporation income tax return in which\nonly the transactions and activities of a single corporation are considered in\nmaking all determinations and computations necessary to calculate taxable net\nincome, tax due, and credits allowed in accordance with this chapter;\n(d) \"Corporation\" means \"corporation\" as defined in Section 7701(a)(3) of the\nInternal Revenue Code; and\n(e) \"Election period\" means the forty -eight (48) month period provided for  in\nsubsection (4)(d) of this section.\n(3) Every corporation doing business in this state, except those corporations listed as\nexempt from taxation under KRS 141.040(1)(a) and (b), shall, for each taxable year:\n(a) 1. File a combined report, if the corpora tion is a member of unitary\nbusiness group as provided in KRS 141.202; or\n2. Make an election to file a consolidated return with all members of the\naffiliated group as provided in this section; or\n(b) File a separate return, if paragraph (a) of this subsection does not apply.\n(4) (a) An affiliated group, whether or not filing a federal consolidated return, may\nelect to file a consolidated return which includes all members of the affiliated\ngroup.\n(b) 1. An affiliated group electing to file a consolidated return under paragraph\n(a) of this subsection shall be treated for all purposes as a single\ncorporation under this chapter.\n2. The determinations and computations required by this chapter shall be\nmade in accordance with Section 1502 of the Internal Revenue Code and\nrelated regulations, except as required by differences between this\nchapter and the Internal Revenue Code.\n3. Corporations listed as exempt from taxation under KRS 141.040(1)(a)\nand (b) shall not be included in the return.\n4. All transactions between corporations included in the consolidated\nreturn shall be eliminated in computing net income as provided in KRS\n141.039(2), and determining the apportionment fraction in accordance\nwith KRS 141.120.\n(c) Any election made in accordance with paragraph (a) of this subsection shall be\nmade on a form prescribed by the department and shall be submitted to the\ndepartment on or before the due date of the return, including extensions, for\nthe first taxable year for which the election is made.\n(d) Any election to file a consolidated return pursuant to paragraph (a) of this\nsubsection shall be binding on both the department and the affiliated group for\na period beginning with the first month of the first taxable ye ar for which the\nelection is made and ending with the conclusion of the taxable year in which\nthe forty-eighth consecutive calendar month expires.\n(e) For each taxable year for which an affiliated group has made an election\nprovided in paragraph (a) of thi s subsection, the consolidated return shall\ninclude all corporations which are members of the affiliated group.\n(5) Each corporation included as part of an affiliated group filing a consolidated return\nshall be jointly and severally liable for the income t ax liability computed on the\nconsolidated return, except that any corporation which was not a member of the\naffiliated group for the entire taxable year shall be jointly and severally liable only\nfor that portion of the Kentucky consolidated income tax liability attributable to that\nportion of the year that the corporation was a member of the affiliated group.\n(6) Every corporation return or report required by this chapter shall be executed by one\n(1) of the following officers of the corporation: the presid ent, vice president,\nsecretary, treasurer, assistant secretary, assistant treasurer, or chief accounting\nofficer. The department may require a further or supplemental report of further\ninformation and data necessary for computation of the tax.\n(7) In the case of a corporation doing business in this state that carries on transactions\nwith stockholders or with other corporations related by stock ownership, by\ninterlocking directorates, or by some other method, the department shall require\ninformation necessary to make possible accurate assessment of the income derived\nby the corporation from sources within this state. To make possible this assessment,\nthe department may require the corporation to file supplementary returns showing\ninformation respecting the bu siness of any or all individuals and corporations\nrelated by one (1) or more of these methods to the corporation. The department may\nrequire the return to show in detail the record of transactions between the\ncorporation and any or all other related corporations or individuals.","path":["KRS Chapter 141"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49915","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:34Z","sha256":"03dfeba169714c760612617cfb278fd2001a4ccef6606131b332ec11d53eb420","source_id":"us-ky","stale":false,"prev":"us-ky/krs-141.200","next":"us-ky/krs-141.202"},"notice":"GroundRules: Original legal text. Not legal advice."}