1. (1) A banking corporation or bank holding company described in section 21-2.2(a) of this Subpart which meets the requirements for exclusion set forth in section 21-2.2(b) of this Subpart does not need to request prior permission to be excluded from a combined return. To be excluded from a combined return, such entity must file a completed separate return. The first year such entity is excluded from the combined return, such entity must include the information required by paragraphs (b)(1) and (2) of this section, either on the return or attached thereto. In addition, the information required by paragraph (3) of such subdivision may be required to be submitted at another time, such as in conjunction with an audit.
2. (2) A banking corporation or bank holding company described in section 21-2.3(a) of this Subpart or section 21-2.6(a) of this Subpart which meets the applicable requirements set forth in section 21-2.3(b)(2) of this Subpart does not need to request prior permission to file on a combined basis with one or more banking corporations or bank holding companies, or to be added to or excluded from a combined return. To file on a combined basis, such entity must be included in a completed combined return. The first year such entity files on a combined basis, and each year thereafter in which the composition of the group changes, the information required by paragraphs (b)(1) and (2) of this section must be submitted, either on the return or attached thereto. In addition, the information required by paragraph (3) of such subdivision may be required to be submitted at another time, such as in conjunction with an audit.

3. (b) For each combined return, the department will require the following information:

   1. (1) the corporate organization chart of the requesting corporation setting forth the name of each corporation and the percentage of voting stock owned or controlled, directly or indirectly, by the requesting corporation and the name of each corporation which owns or controls, directly or indirectly, the voting stock of the requesting corporation and the percentage of such stock so owned;

   2. (2) for all of the bank holding companies, banking corporations and other corporations which own or control, directly or indirectly, 65 percent or more of the voting stock of the requesting corporation or whose voting stock is 65 percent or more owned or controlled, directly or indirectly, by the requesting corporation or by the same interest as the requesting corporation:

      1. (i) the exact name;
      2. (ii) address (including ZIP code);
      3. (iii) employer identification number;
      4. (iv) date of incorporation;
      5. (v) state or country of incorporation;
      6. (vi) the date business began in New York State, if applicable; and
      7. (vii) in the case of a corporation described in section 16-2.5(j) of this Title, a description of the activities in which the corporation is principally engaged (as defined in such subdivision [j]) and the section of the law or regulations which establish that such activities are permissible activities within the contemplation of subparagraph (1)(i) of such subdivision (j); and
   3. (3) a statement providing details as to why the inclusion of those corporations which are included in a combined return and the exclusion of those corporations which are excluded from a combined return properly reflect the tax liability of the group of corporations and of each corporation to be included in the group and of each corporation to be excluded from the group.
4. (c) The filing of a combined return or the inclusion of a corporation in or the exclusion of a corporation from a combined return is subject to revision or disallowance on audit.
5. (d) A corporation which properly reports on a combined basis must continue to file its returns on a combined basis until the facts affecting its combined reporting status materially change. A corporation which is properly excluded from a combined return must continue to file its return on a separate basis until such facts materially change. For example, if a corporation which was 65 percent or more but less than 80 percent owned or controlled becomes 80 percent or more owned or controlled, or if a corporation which was 80 percent or more owned or controlled becomes less than 80 percent owned or controlled, a material change has taken place.
6. (e) Once a group of corporations properly files a combined return, it must notify the department of the subsequent acquisition of any corporation for which information is requested pursuant to paragraph (b)(2) of this section. Such notification must be given on the combined return for the taxable year in which such acquisition was made. The notification must contain all the information described in subdivision (b) of this section.

(a)