The Secretary shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected, and adjusted, in such manner as clearly to reflect the income-tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability. In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns.
(Aug. 16, 1954, ch. 736, 68A Stat. 367; Pub. L. 94–455, title XIX, §1906(b) (13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 108–357, title VIII, §844(a), Oct. 22, 2004, 118 Stat. 1600.)
2004—Pub. L. 108–357 inserted at end "In carrying out the preceding sentence, the Secretary may prescribe rules that are different from the provisions of chapter 1 that would apply if such corporations filed separate returns."
1976—Pub. L. 94–455 struck out "or his delegate" after "Secretary".
Pub. L. 108–357, title VIII, §844(c), Oct. 22, 2004, 118 Stat. 1600, provided that: "This section [amending this section], and the amendment made by this section, shall apply to taxable years beginning before, on, or after the date of the enactment of this Act [Oct. 22, 2004]."
Pub. L. 100–647, title VI, §6126, Nov. 10, 1988, 102 Stat. 3713, provided that:
"(a)
"(1) involves the transfer after the date of the enactment of this Act [Nov. 10, 1988] by a domestic corporation, with respect to which there is a qualified excess loss account, of its assets and liabilities to a foreign corporation in exchange for all of the stock of such foreign corporation, followed by the complete liquidation of the domestic corporation into the common parent, and
"(2) qualifies, pursuant to Revenue Ruling 87–27, as a reorganization which is described in section 368(a)(1)(F) of the 1986 Code,
then, solely for purposes of applying Treasury Regulation section 1.1502–19 to such qualified excess loss account, such foreign corporation shall be treated as a domestic corporation in determining whether such foreign corporation is a member of the affiliated group of the common parent.
"(b)
"(1)
"(A) the source and character of any item of income of the foreign corporation referred to in subsection (a) shall be determined as if such foreign corporation were a domestic corporation,
"(B) the net amount of any such income shall be treated as subpart F income (without regard to section 952(c) of the 1986 Code), and
"(C) the amount in the qualified excess loss account referred to in subsection (a) shall—
"(i) be reduced by the net amount of any such income, and
"(ii) be increased by the amount of any such income distributed directly or indirectly to the common parent described in subsection (a).
"(2)
"(3)
"(4)
"(A) the fair market value of the property transferred, over
"(B) its adjusted basis,
shall be treated as gain from the sale or exchange of such property and shall be recognized notwithstanding any other provision of law. Proper adjustment shall be made to the basis of any such property for gain recognized under the preceding sentence.
"(c)
"(1)
"(2)
"(A) to taxable years beginning before January 1, 1988, and
"(B) to periods during which the domestic corporation was subject to an income tax of a foreign country on its income on a residence basis or without regard to whether such income is from sources in or outside of such foreign country.
The amount of such account shall be determined as of immediately after the transaction referred to in subsection (a) and without, except as provided in subsection (b), diminution for any future adjustment.
"(3)
"(4)
"(A) another foreign corporation acquires from the common parent stock of the foreign corporation referred to in subsection (a) after the transaction referred to in subsection (a),
"(B) both of such foreign corporations are subject to the income tax of the same foreign country on a residence basis, and
"(C) such common parent complies with such reporting requirements as the Secretary of the Treasury or his delegate may prescribe for purposes of this paragraph,
such other foreign corporation shall be treated as a domestic corporation in determining whether the foreign corporation referred to in subsection (a) is a member of the affiliated group referred to in subsection (a) (and the rules of subsection (b) shall apply (i) to any gain of such other foreign corporation on any disposition of such stock, and (ii) to any other income of such other foreign corporation except to the extent it establishes to the satisfaction of the Secretary of the Treasury or his delegate that such income is not attributable to property acquired from the foreign corporation referred to in subsection (a))."
Pub. L. 99–514, title VI, §647, Oct. 22, 1986, 100 Stat. 2294, provided that: "If for a taxable year of an affiliated group filing a consolidated return ending on or before December 31, 1987, there is a disposition of stock of a subsidiary (within the meaning of Treasury Regulation section 1.1502–19), the amount required to be included in income with respect to such disposition under Treasury Regulation section 1.1502–19(a) shall, notwithstanding such section, be included in income ratably over the 15-year period beginning with the taxable year in which the disposition occurs. The preceding sentence shall apply only if such subsidiary was incorporated on December 24, 1969, and is a participant in a mineral joint venture with a corporation organized under the laws of the foreign country in which the joint venture mineral project is located."
| § 1.1502-0 | Effective dates |
| § 1.1502-1 | Definitions |
| § 1.1502-2 | Computation of tax liability |
| § 1.1502-3 | Consolidated tax credits |
| § 1.1502-4 | Consolidated foreign tax credit |
| § 1.1502-5 | Estimated tax |
| § 1.1502-6 | Liability for tax |
| § 1.1502-9 | Consolidated overall foreign losses, separate limitation losses, and overall domestic losses |
| § 1.1502-11 | Consolidated taxable income |
| § 1.1502-12 | Separate taxable income |
| § 1.1502-13 | Intercompany transactions |
| § 1.1502-14Z | Application of opportunity zone rules to members of a consolidated group |
| § 1.1502-15 | SRLY limitation on built-in losses |
| § 1.1502-16 | Mine exploration expenditures |
| § 1.1502-17 | Methods of accounting |
| § 1.1502-18 | Inventory adjustment |
| § 1.1502-19 | Excess loss accounts |
| § 1.1502-21 | Net operating losses |
| § 1.1502-22 | Consolidated capital gain and loss |
| § 1.1502-23 | Consolidated net section 1231 gain or loss |
| § 1.1502-24 | Consolidated charitable contributions deduction |
| § 1.1502-26 | Consolidated dividends received deduction |
| § 1.1502-27 | Consolidated section 247 deduction |
| § 1.1502-28 | Consolidated section 108 |
| § 1.1502-30 | Stock basis after certain triangular reorganizations |
| § 1.1502-31 | Stock basis after a group structure change |
| § 1.1502-32 | Investment adjustments |
| § 1.1502-33 | Earnings and profits |
| § 1.1502-34 | Special aggregate stock ownership rules |
| § 1.1502-35 | Transfers of subsidiary stock and deconsolidations of subsidiaries |
| § 1.1502-36 | Unified loss rule |
| § 1.1502-42 | Mutual savings banks, etc |
| § 1.1502-43 | Consolidated accumulated earnings tax |
| § 1.1502-44 | Percentage depletion for independent producers and royalty owners |
| § 1.1502-47 | Consolidated returns by life-nonlife groups |
| § 1.1502-50 | Consolidated section 250 |
| § 1.1502-51 | Consolidated section 951A |
| § 1.1502-55 | Computation of alternative minimum tax of consolidated groups |
| § 1.1502-59A | Application of section 59A to consolidated groups |
| § 1.1502-68 | Additional first year depreciation deduction for property acquired and placed in service after September 27, 2017 |
| § 1.1502-75 | Filing of consolidated returns |
| § 1.1502-76 | Taxable year of members of group |
| § 1.1502-77 | Agent for the group |
| § 1.1502-78 | Tentative carryback adjustments |
| § 1.1502-79 | Separate return years |
| § 1.1502-80 | Applicability of other provisions of law |
| § 1.1502-81T | Alaska Native Corporations |
| § 1.1502-90 | Table of contents |
| § 1.1502-91 | Application of section 382 with respect to a consolidated group |
| § 1.1502-92 | Ownership change of a loss group or a loss subgroup |
| § 1.1502-93 | Consolidated section 382 limitation (or subgroup section 382 limitation) |
| § 1.1502-94 | Coordination with section 382 and the regulations thereunder when a corporation becomes a member of a consolidated group |
| § 1.1502-95 | Rules on ceasing to be a member of a consolidated group (or loss subgroup) |
| § 1.1502-96 | Miscellaneous rules |
| § 1.1502-97 | Special rules under section 382 for members under the jurisdiction of a court in a title 11 or similar case [Reserved] |
| § 1.1502-98 | Coordination with sections 383 and 163(j) |
| § 1.1502-99 | Effective/applicability dates |
| § 1.1502-100 | Corporations exempt from tax |
| § 1.1502-9A | Application of overall foreign loss recapture rules to corporations filing consolidated returns due on or before August 11, 1999 |
| § 1.1502-15A | Limitations on the allowance of built-in deductions for consolidated return years beginning before January 1, 1997 |
| § 1.1502-21A | Consolidated net operating loss deduction generally applicable for consolidated return years beginning before January 1, 1997 |
| § 1.1502-22A | Consolidated net capital gain or loss generally applicable for consolidated return years beginning before January 1, 1997 |
| § 1.1502-23A | Consolidated net section 1231 gain or loss generally applicable for consolidated return years beginning before January 1, 1997 |
| § 1.1502-41A | Determination of consolidated net long-term capital gain and consolidated net short-term capital loss generally applicable for consolidated return years beginning before January 1, 1997 |
| § 1.1502-77A | Common parent agent for subsidiaries applicable for consolidated return years beginning before June 28, 2002 |
| § 1.1502-77B | Agent for the group applicable for consolidated return years beginning on or after June 28, 2002, and before April 1, 2015 |
| § 1.1502-79A | Separate return years generally applicable for consolidated return years beginning before January 1, 1997 |
| § 1.1502-90A | Table of contents |
| § 1.1502-91A | Application of section 382 with respect to a consolidated group generally applicable for testing dates before June 25, 1999 |
| § 1.1502-92A | Ownership change of a loss group or a loss subgroup generally applicable for testing dates before June 25, 1999 |
| § 1.1502-93A | Consolidated section 382 limitation (or subgroup section 382 limitation) generally applicable for testing dates before June 25, 1999 |
| § 1.1502-94A | Coordination with section 382 and the regulations thereunder when a corporation becomes a member of a consolidated group) generally applicable for corporations becoming members of a group before June 25, 1999 |
| § 1.1502-95A | Rules on ceasing to be a member of a consolidated group generally applicable for corporations ceasing to be members before June 25, 1999 |
| § 1.1502-96A | Miscellaneous rules generally applicable for testing dates before June 25, 1999 |
| § 1.1502-97A | Special rules under section 382 for members under the jurisdiction of a court in a title 11 or similar case [Reserved] |
| § 1.1502-98A | Coordination with section 383 generally applicable for testing dates (or members joining or leaving a group) before June 25, 1999 |
| § 1.1502-99A | Effective dates |
| § 5.1502-45 | Limitation on losses to amount at risk |
The Regulations cited above were determined based on programmatic database analysis using data provided by the Government Publishing Office. TouchTax attempts to hide unrelated regulation provisions. Due to limited GPO data, however, certain unrelated regulations may appear in some instances.
The preliminary Code is a preliminary release of the Internal Revenue Code of 1986 (the "Code") by the Office of the Law Revision Counsel and is subject to further revision before it is released again as a final version. The source of the preliminary Code used in TouchTax is available here: https://uscode.house.gov/download/download.shtml. The Code is a consolidation and codification by subject matter of the general and permanent laws of the U.S. prepared by the Office of the Law Revision Counsel of the U.S. House of Representatives. The Treasury Regulations are a codification of the general and permanent rules published in the Federal Register by the departments and agencies of the federal government. The version of the Treasury Regulations available within TouchTax is part of the Electronic Code of Federal Regulations which is not an official legal edition of the Code of Federal Regulations but is an editorial compilation of CFR material and Federal Register amendments produced by the National Archives and Records Administration's Office of the Federal Register (OFR) and the Government Publishing Office. The source of the CFR used in TouchTax is available here: https://www.govinfo.gov/bulkdata/ECFR/title-26. Those using TouchTax for legal research should verify their results against the printed versions of the Code and Treasury Regulations. TouchTax is copyright 2024 by Com-Lab (Mobile). Learn more at http://touchtax.edrich.de.