### Question
How does CONSOLIDATED RETURNS define controlled group of corporations?


### Answer
Under *26 U.S.C. § 1563*, **controlled group of corporations** is defined as:

> any group of—



#### (1) Parent-subsidiary controlled group


One or more chains of corporations connected through stock ownership with a common parent corporation if—



(A) stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote or at least 80 percent of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned (within the meaning of subsection (d)(1)) by one or more of the other corporations

#### Citation:
  - *26 U.S.C. § 1563*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 6-CONSOLIDATED RETURNS > Subchapter B-Related Rules > PART II-CERTAIN CONTROLLED CORPORATIONS**

