### Question
What is the definition of controlled group?


### Answer
The definition of **controlled group** is as follows in *26 U.S.C. § 851*:

> one or more chains of corporations connected through stock ownership with the taxpayer if—


(A) 20 percent or more of the total combined voting power of all classes of stock entitled to vote of each of the corporations (except the taxpayer) is owned directly by one or more of the other corporations, and


(B) the taxpayer owns directly 20 percent or more of the total combined voting power of all classes of stock entitled to vote, of at least one of the other corporations

#### Citation:
  - *26 U.S.C. § 851*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART I-REGULATED INVESTMENT COMPANIES**

