CH. 6—CONSOLIDATED RETURNS
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CHAPTER 6—CONSOLIDATED RETURNS SUBCHAPTER A. Returns and payment of tax. SUBCHAPTER B. Related rules.
Subchapter A—Returns and Payment of Tax Sec. Sec. Sec. Sec. Sec.
1501. 1502. 1503. 1504. 1505.
Privilege to file consolidated returns. Regulations. Computation and payment of tax. Definitions. Cross references.
SEC. 1501. PRIVILEGE TO FILE CONSOLIDATED RETURNS.
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. SEC. 1502. REGULATIONS.
The Secretary or his delegate 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. SEC. 1503. COMPUTATION AND PAYMENT OF TAX. (a) GENERAL RULE. — I n any case in which a consolidated return is made or is required to be made, the tax shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under section 1502 prescribed prior to the last day prescribed by law for the filing of such return; except that the tax imposed under section 11(c) or section 831 shall be increased for any taxable year by 2 percent of the consolidated taxable income of the affiliated group of includible corporations. For purposes of this section, the term "consolidated taxable income" means the consolidated taxable income computed without regard to the deduction provided by section 242 for partially tax-exempt interest. § 1503(a)
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