In her February Tax Policy News, the Comptroller clarified that when an entity that is disregarded for federal income tax purposes is part of a franchise tax combined group, the repoting entity may to treat the entity as disregarded and not unwind its operations from its parent entity.  If the entity is treated as disregarded, then it will be presumed that both the parent of the disregarded entity and the disregarded entity itself have nexus in Texas for purposes of apportionment only.  Notwithstanding this presumption, when the disregarded entity is listed on the Affiliate Schedule to the combined report, it should blacken the no-nexus circle if it does not have a physical presence in Texas.  The disregarded entity will not be required to file an Ownership Report or a Public Information Report.