Income/Franchise:
Tennessee Letter Ruling Addresses Combined Filing, Sale of Interests in Partnership Structure, and §338(h)(10) Election
Letter Ruling No. 24-08, Tenn. Dept. of Rev. (10/31/24). A Tennessee Department of Revenue (Department) letter ruling addresses whether and when certain described restructuring transactions involving an entity that ceased being a first-tier subsidiary of a financial institution that filed as part of a unitary group of financial institutions for Tennessee franchise and excise tax purposes must be included in the Tennessee combined return. Under the provided facts, the entity ceased being a first-tier subsidiary of the financial institution pursuant to various steps that converted the entity into a partnership structure whose interests were then sold under an Internal Revenue Code section 338(h)(10) election. Among other relevant factors, the Department considered whether the transactions occurred while the entity was part of the unitary group. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10182-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
