Rev. Rul. 58-471

Advice has been requested as to whether enactment of the Technical Amendments Act of 1958, Public Law 85-866, 72 Stat., 1606, approved September 2, 1958, will permit affiliated corporations a new election to file separate returns in lieu of consolidated returns and as to the year for which such new elections will be available.

The Technical Amendments Act of 1958, which provides a three-year net operating loss carryback for taxable years ending after December 31, 1957, and a carryback and carryover of foreign tax credit with respect to taxable years beginning after December 31, 1957, is of such a character as to make substantially less advantageous to affiliated groups of corporations as a class the continue filing of consolidated income tax returns, within the meaning of section 1.1502-11(a)(2) of the Income Tax Regulations.

In view of this legislative enactment, a new election is authorized to file separate returns for the first taxable year for which returns are due to be filed after the date of enactment of the Technical Amendments Act of 1958. In this regard returns due to be filed after the date of enactment of the new Act (including any extensions of time granted by the Commissioner of Internal Revenue) will be considered as filed and the election exercised on such due date regardless of the actual previous date of filing. However, the last return (or returns), whether original or revised, filed on or before the due date for the return (including any extensions of time for filing such return), will be considered the return or returns filed on such due date.