Affiliated Group Law and Legal Definition

According to 26 USCS § 1504 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 6. Consolidated Returns; Subchapter A. Returns and Payment of Tax], (1) In general. The term "affiliated group" means

(A) 1 or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation, but only if

(B) (i) the common parent owns directly stock meeting the requirements of paragraph (2) in at least 1 of the other includible corporations, and

(ii) stock meeting the requirements of paragraph (2) in each of the includible corporations (except the common parent) is owned directly by 1 or more of the other includible corporations.