(a) Several liability of members of group. Except as provided in paragraph (b) of this section, the common parent corporation and each subsidiary which was a member of the group during any part of the consolidated return year shall be severally liable for the tax for such year computed in accordance with the regulations under section 1502 prescribed on or before the due date (not including extensions of time) for the filing of the consolidated return for such year.
(b) Liability of subsidiary after withdrawal. If a subsidiary has ceased to be a member of the group and in such cessation resulted from a bona fide sale or exchange of its stock for fair value and occurred prior to the date upon which any deficiency is assessed, the Commissioner may, if the Commissioner believes that the assessment or collection of the balance of the deficiency will not be jeopardized, make assessment and collection of such deficiency from such former subsidiary in an amount not exceeding the portion of such deficiency which the Commissioner may determine to be allocable to it. If the Commissioner makes assessment and collection of any part of a deficiency from such former subsidiary, then for purposes of any credit or refund of the amount collected from such former subsidiary the agency of the common parent under the provisions of § 1.1502-77 does not apply.
(c) Effect of intercompany agreements. No agreement entered into by one or more members of the group with any other member of such group or with any other person shall in any case have the effect of reducing the liability prescribed under this section.
[T.D. 6894, 31 FR 11794, Sept. 8, 1966, as amended by T.D. 9002, 67 FR 43540, June 28, 2002; T.D. 10018, 89 FR 106853, Dec. 30, 2024]
Notes of Decisions
Mid-Am. Television Co. v. State Tax Comm'n, 652 S.W.2d 674 (Mo. 1983).
· cites it 4× “…a consolidated return shall be severally liable for the entire amount of tax assessed the group as a whole. See 26 C.F.R. § 1.1502-6 (a) (1982).”
Peninsula Steel Prods. & Equip. Co. v. Comm'r, 78 T.C. 1029 (Tax Ct. 1982).
· cites it 2× “Since a notice of deficiency was issued to Peninsula Steel Products & Equipment Co., Inc., on a consolidated basis, and it timely filed a petition to this Court, we view this stipulation as a request for us to determine petitioner's and Monotech's consolidated income tax…”
Rodriguez v. Fed. Deposit Ins. Corp., 140 S. Ct. 713 (2020).
“For example and as we've seen, the government may wish to ensure that others in the group have no recourse against federal coffers once it pays the group's designated agent.”
Stanziale v. CopperCom, Inc. (In re Conex Holdings, LLC), 518 B.R. 792 (Bankr. D. Del. 2014).
· cites it 2× “2002) (citing 26 C.F.R. §§ 1.1502-6 ). "No agreement entered into by one or more members of the group with any other member of such group or with any other person shall in any case have the effect of reducing the liability prescribed under this section.”
Home Grp. v. Comm'r, 92 T.C. 940 (Tax Ct. 1989).
· cites it 4× “He argued that Home is incompetent to serve as surety on its own appeal bond under section 7485(a) since it is a member of the consolidated group liable for the tax deficiency.”
In Re G-1 Holdings Inc., 420 B.R. 216 (D.N.J. 2009).
“§ 1502 ; 26 C.F.R. § 1.1502-6 (a). On November 30, 2001, the IRS, G-I and G-I’s affiliated non-debtors entered into the “Agreement to be Bound, Waiver, and Agreement to Defer Assessment” (the “Tolling Agreement”) (Conf.”
Marvel Ent. Grp., Inc. v. MAFCO Holdings, Inc. (In Re Marvel Ent. Grp., Inc.), 273 B.R. 58 (D. Del. 2002).
“See 26 C.F.R. §§ 1.1502-6 . In order to calculate the federal taxable income of the Mafco consolidated group, each member had to first calculate its taxable income in approximately the same manner as if it were filing its own federal income tax return; the items that would have…”
J & S Carburetor Co. v. Comm'r, 93 T.C. 166 (Tax Ct. 1989).
· cites it 2× “, the common parent and each subsidiary) is severally liable for the entire *169 amount of any tax deficiency determined for the consolidated return. Sec. 1.1502-6(a), Income Tax Regs.”
Abraham v. United States, 582 F. Supp. 257 (S.D.N.Y. 1984).
“to appear before the Secretary at a time and place named in the summons, and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry *260 In this case, the avowed purpose of the IRS is to…”
Dividend Indus., Inc. v. Comm'r, 88 T.C. 145 (Tax Ct. 1987).
· cites it 4× “, does not expressly state how the notice of deficiency or the adjustments reflected therein will be affected where the adjustments are attributable to a member of an affiliated group that is not identified in the notice of deficiency. Respondent relies heavily on section 1.”
— 26 C.F.R. § 1.1502-6(a) — 1 case
Mid-Am. Television Co. v. State Tax Comm'n, 652 S.W.2d 674 (Mo. 1983).
“…a consolidated return shall be severally liable for the entire amount of tax assessed the group as a whole. See 26 C.F.R. § 1.1502-6 (a) (1982).”
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