Title 26 — Internal Revenue CodeRelease 119-73

§1501 Privilege to File Consolidated Returns

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 6— CONSOLIDATED RETURNS › Subchapter A— Returns and Payment of Tax › § 1501

Last updated Apr 6, 2026|Official source

Summary

A group of related corporations (an affiliated group) may file one combined income tax return instead of separate returns. The catch: every corporation that was a member of the group at any time during the year must consent to the consolidated return regulations before the filing deadline, and actually filing the combined return counts as that consent. If a corporation was a member for only part of the year, the combined return includes its income only for the part of the year it was in the group.

Full Legal Text

Title 26, §1501

Internal Revenue Code — Source: USLM XML via OLRC

An affiliated group of corporations shall, subject to the provisions of this chapter, have the privilege of making a consolidated return with respect to the income tax imposed by chapter 1 for the taxable year in lieu of separate returns. The making of a consolidated return shall be upon the condition that all corporations which at any time during the taxable year have been members of the affiliated group consent to all the consolidated return regulations prescribed under section 1502 prior to the last day prescribed by law for the filing of such return. The making of a consolidated return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated return shall include the income of such corporation for such part of the year as it is a member of the affiliated group.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1501

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73