Business Income Tax | Affiliated Corporations

Schedule C of the DR 0112 must be completed if the corporation is part of an affiliated group as defined in § 39-22-303(12), C.R.S., without regard to the minimum property and payroll requirements prescribed in § 39-22-303(12)(c), C.R.S. Schedule C can be found in the DR 0112 Booklet on the Business Income Tax Forms web page. 

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.

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.