S739 - Consolidated Corporate Tax Returns

• Clarifies that the Secretary of Revenue shall adopt rules describing when corporations must file consolidated returns, with adoption required by September 1, 2011.

• Allows parent, subsidiary, or affiliated corporations to voluntarily file consolidated returns eliminating intercompany payments or charges in excess of fair market value, regardless of prior year elections.

• Adds penalty provisions requiring corporations to file demanded consolidated returns within 60 days and provide requested information within 30 days, subject to penalties under G.S. 105-230 and 105-236.

• Establishes that voluntary consolidated returns may only be adjusted by the Secretary if they fail to disclose true earnings due to excess intercompany payments or charges in excess of fair market value.

• Section 2 becomes effective for taxable years beginning January 1, 2012; remainder effective when enacted and applies to ongoing contested cases without final administrative law judge decisions.