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


### Answer
The definition of **controlled group of entities** is as follows in *26 U.S.C. § 3121*:

> a controlled group of corporations as defined in section 1563(a)(1), except that—


(i) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears therein, and


(ii) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563

#### Citation:
  - *26 U.S.C. § 3121*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 21-FEDERAL INSURANCE CONTRIBUTIONS ACT > Subchapter C-General Provisions**

