Controlled Group

Controlled Group means:
two or more corporations whose stock is substantially held by five or fewer persons; included are brother-sister controlled groups of corporations, parent-subsidiary groups, combined groups, and certain insurance companies. These corporations are subject to special rules for computing income tax, the alternative minimum tax exemption, the accumulated earnings credit, and the environmental tax exemption. They are also subject to the related party transaction rules concerning matching deduction/income recognition and the loss deferral rule regarding losses on sales between members of a controlled group. Former IRC (check if this IRC provision is current here) §§851(c)(3) and 1563(a).

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See Tax exemption and Tax exemption.