Rev. Rul. 62-204

Inquiries have been received whether enactment of the Revenue Act of 1962, Public Law 87-834, 76 Stat. 960, approved October 16, 1962, C.B. 1962-3, page 111, 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.

Since the Revenue Act of 1962 constitutes a significant change in the tax laws, the Treasury Department has authorized a new election to file separate returns for either the first taxable year for which returns are due to be filed after the date of enactment of the Act, or the first taxable year ending after the date of such enactment.

In this regard, returns due to be filed after the date of enactment of the Act (including any extensions of time granted by the Commissioner) will be considered as filed and the election exercised on such due date even though the return was filed prior to the due date. 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. For example: An affiliated group whose taxable year ended on February 28, 1962, received an extension of time to file its consolidated return until November 15, 1962; however, it filed its original return on October 15, 1962. The group may exercise its election to file separate returns in lieu of consolidated returns by filing either revised returns for its taxable year ended February 28, 1962, on a separate return basis on or before November 15, 1962; or, original returns for its taxable year ending February 28, 1963, on a separate return basis.

¹ Also released as Technical Information Release 412, dated November 9, 1962; this Revenue Ruling was clarified by Revenue Ruling 63-18, I.R.B. 1963-8, 16, dated February 25, 1963.