News & Insights

Virginia Combined Reporting Work Group Recommends No Legislative Action

Tax Development Nov 09, 2021

Virginia Combined Reporting Work Group Recommends No Legislative Action

The Virginia Combined Reporting Work Group (“Work Group”) was established to evaluate the results of the mandatory combined reporting initiative last summer, which required taxpayers to report their potential corporate income tax liability under a combined reporting methodology. Based on the results of that initiative, the Work Group determined that the existing tax policy requiring add-back of certain intercompany transactions is sufficient to deter abusive tax planning.

The results of the proforma combined reporting by taxpayers indicated that 13% of taxpayers would pay more income tax under combined reporting rules, while 14% paid less and the remaining 73% paid about the same in tax. Based on these results, the Work Group recommended no further study regarding implementation of combined reporting at this time.

The Work Group also recommended against both market-based sourcing and a single sales factor method for apportioning income across all corporate taxpayers. It was concluded that consideration should be given by individual business sectors, rather than mandating this change for all corporate taxpayers. 

Please reach out to our Ryan specialists for any questions regarding Virginia income taxes.


Mark L. Nachbar

Duane Dobson

Mary Bernard

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at