[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302602-105":53,"doc-detail-302602-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","south-dakota-supreme-court-opinion-appeal-from-the-circuit-court","South Dakota Supreme Court Opinion - Appeal From the Circuit Court","","South Dakota’s Department of Revenue rejected U. S. Bank’s method for calculating a federal income tax deduction tied to the state’s bank franchise tax for tax years 2010, 2011, and 2012. After the administrative decision, the circuit court affirmed the Department’s ruling, leading to a further appeal. The case centers on how federal income tax is computed within a consolidated federal group and how that tax is deducted when determining SD BFT liability for the bank’s taxable income.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/south-dakota-supreme-court-opinion-appeal-from-the-circuit-court/302602/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/south-dakota-supreme-court-opinion-appeal-from-the-circuit-court/302602.png","ImageObject",442,249,{"name":88,"@type":89},"Bill Black","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-26","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What issue did the South Dakota Department of Revenue reject regarding U. S. Bank’s tax calculation?","Question",{"text":108,"@type":109},"The Department rejected U. S. Bank’s method for calculating its federal income tax deduction from net income subject to South Dakota’s bank franchise tax for 2010 through 2012.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How does the federal consolidated group filing affect U. S. Bank’s federal reporting?",{"text":113,"@type":109},"U. S. Bank is included in U. S. Bancorp’s consolidated federal corporate income tax return using IRS Form 1120, so U. S. Bank does not file a separate Form 1120 with the IRS.",{"name":115,"@type":106,"acceptedAnswer":116},"What role does the Tax Sharing Agreement play in the dispute?",{"text":117,"@type":109},"The agreement allocates federal tax liability or benefit among group members based on each member’s income or loss, including payments designed to make each company whole for the group’s tax outcomes.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302602,1790458985,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":79,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":141},24189269381491,"https://ap-avatar.wpscdn.com/avatar/160000cf11732dd8392?x-image-process=image/resize,m_fixed,w_180,h_180&k=1788146458752108895","\\#29338-a-MES  \n2022 S.D. 59  \nIN THE SUPREME COURT OF THE  \nSTATE OF SOUTH DAKOTA  \n* * * *  \nU. S. BANK NATIONAL ASSOCIATION, Appellant,  \nv.  \nSOUTH DAKOTA DEPARTMENT OF  \nREVENUE, Appellee.  \n* * * *  \nAPPEAL FROM THE CIRCUIT COURT OF THE SIXTH JUDICIAL CIRCUIT HUGHES COUNTY, SOUTH DAKOTA  \n* * * *  \nTHE HONORABLE BOBBI J. RANK Judge  \n* * * *  \nCRAIG B. FIELDS NICOLE L. JOHNSON of Blank Rome LLP New York, New York  \nJUSTIN L. BELL of  \nMay, Adam, Gerdes & Thompson LLP Pierre, South Dakota  \nJOHN T. RICHTER of  \nSouth Dakota Department of Revenue Pierre, South Dakota  \n* * * *  \nAttorneys for appellant.  \nAttorneys for appellee.  \nARGUED  \nFEBRUARY 16 , 2021  \nOPINION FILED 10/05/22  \nSALTER, Justice  \n[¶1.] The South Dakota Department of Revenue (the Department) rejected U. S. Bank’s 1 method of calculating its federal income tax deduction from net income subject to South Dakota’s bank franchise tax for tax years 2010, 2011, and 2012. Asa result, the Department denied U. S. Bank’s request for a refund for 2010 and 2011 and disallowed the entire deduction for 2012. The Department issued a certificate of assessment for additional tax and interest for 2012. U. S. Bank appealed the administrative decision to the circuit court, which affirmed the Department’s decision. U. S. Bank now appeals to this Court. We affirm.  \nFacts and Procedural History  \n[¶2.] U. S. Bank is a financial institution principally engaged in the business  \nof banking. It operates in South Dakota and other states and is a member of a larger, consolidated group of affiliates owned by U. S. Bancorp, which is a publicly traded holding company.  \n[¶3.] By virtue of its business within the State, U. S. Bank is subject to  \nSouth Dakota’s bank franchise tax (SD BFT) . See SDCL ch. 10-43. The tax is applied to a financial institution’s “taxable income as defined in the United States Internal Revenue Code   and reportable for federal income tax purposes for the taxable year  ” SDCL 10-43-10. 1; see also SDCL 10-43-1(12) (defining taxable income as “all net income”) .  \n[¶4.] U. S. Bank does not, itself, directly report its income to the Internal  \nRevenue Service (IRS) . Instead, U. S. Bancorp, in its role as the parent company, is  \n1. U. S. Bank is formally known as U. S. Bank National Association.  \nresponsible for filing a consolidated federal corporate income tax return for the  \ngroup of affiliates using an IRS Form 1120—U. S. Corporation Income Tax Return.  \nFor the tax years at issue here, U. S. Bancorp filed the group’s Form 1120, which included U. S. Bank’s activities.  \n[¶5.] Schedule J of IRS Form 1120, entitled “Tax Computation,” provides the  \nmethod used to calculate the total federal tax due. The calculation on Schedule J begins by multiplying taxable income by the appropriate tax rate to arrive at the federal income tax amount listed on line 2 of Schedule J. That number is then reduced by any number of applicable tax credits, which include, among others, general business credits, recapture of investment credit, and credit for foreign taxes.  \nAfter applying all of a taxpayer’s credits to reduce its tax liability, the total tax  \nfigure is recorded on line 11 of Schedule J and then transferred to the Form 1120.  \nThe total tax due is, therefore, a net calculation of federal tax liability that must be paid to the IRS. The excerpt of Form 1120’s Schedule J below illustrates the sequence of the calculation.  \n[¶6.] U. S. Bank, the other affiliates, and U. S. Bancorp are parties to a Tax  \nSharing Agreement designed to allocate the federal tax liability or benefit among the members of the group according to the income or loss each generates. Under the Tax Sharing Agreement, U. S. Bank pays to U. S. Bancorp “an amount up to [U. S. Bank’s] separate income tax liability attributable to the net taxable income of [U. S.  \nBank] that would have been paid if [U. S. Bank] had filed a separate tax return.”  \nAccording to U. S. Bank, each member of the consoli","cbCaiuFqJmfEkV0I","https://ap.wps.com/l/cbCaiuFqJmfEkV0I","pdf",348566,20,"English","# Facts and Procedural History\n## Bank franchise tax and federal taxable income\n## Tax sharing agreement and consolidated return method\n## Pro forma Form 1120 and the challenged deduction","[{\"question\":\"What issue did the South Dakota Department of Revenue reject regarding U. S. Bank’s tax calculation?\",\"answer\":\"The Department rejected U. S. Bank’s method for calculating its federal income tax deduction from net income subject to South Dakota’s bank franchise tax for 2010 through 2012.\"},{\"question\":\"How does the federal consolidated group filing affect U. S. Bank’s federal reporting?\",\"answer\":\"U. S. Bank is included in U. S. Bancorp’s consolidated federal corporate income tax return using IRS Form 1120, so U. S. Bank does not file a separate Form 1120 with the IRS.\"},{\"question\":\"What role does the Tax Sharing Agreement play in the dispute?\",\"answer\":\"The agreement allocates federal tax liability or benefit among group members based on each member’s income or loss, including payments designed to make each company whole for the group’s tax outcomes.\"}]","South Dakota Supreme Court Opinion - Appeal From the Circuit Court | PDF",1789794454,7]