1. (a) A corporation, except a corporation required to be included in a return under AS 43.20.144, must file a return under AS 43.20.145 using the water's edge combined reporting method if that corporation is a member of an affiliated group as defined in 15 AAC 20.335.
2. (b) A corporation that is a member of an affiliated group and that has nexus with the State of Alaska shall file a return under (a) of this section even if that corporation could not be included in the water's edge combined report of an affiliated corporation under AS 43.20.145.

3. (c) A taxpayer required to file a water's edge return under AS 43.20.145 shall instead file a worldwide combined return under AS 43.20.142 if the department determines that the taxpayer has not

   1. (1) complied with the domestic disclosure spreadsheet requirements of 15 AAC 20.390;
   2. (2) substantially complied with the requirements of 15 AAC 20.330 - 15 AAC 20.390; or
   3. (3) provided, within 120 days after receipt of the department's request, the information necessary for the department to audit the taxpayer's return; the department will, in the department's discretion, extend the 120 day period for good cause as determined by the department.
4. (d) If a worldwide combined return is required under (c) of this section, the period of limitation for assessment under AS 43.05.260 does not begin to run until the filing of the worldwide combined return with the department.

(Eff. 7/9/93, Register 127; am 3/6/98, Register 145)