Combined Reporting

In the last several years, activist groups and legislators have been pushing for Maryland to adopt combined reporting for corporate income tax filings promising it will bring in more revenue for the state and close corporate tax loopholes. Each year, the Maryland Chamber of Commerce and our members continue to educate and advocate to defeat this burdensome legislation.  

Combined reporting is a corporate income tax reporting method where the legal existence of affiliated taxpayers (parents and subsidiaries) are disregarded and taxes are reported as if the affiliated taxpayers conducted business as a single legal entity. The separate incomes of the members/affiliated taxpayers are added together or “combined.” The determination to combine separate legal entities into one group is often based on the unitary business principle. There is no bright line “unitary” test, and states have adopted inconsistent standards. 

Learn more about combined reporting in our blog post, “UNDERSTANDING COMBINED REPORTING IN MARYLAND: 5 TOP QUESTIONS ANSWERED”