---
kind: "section"
citation: "26 U.S.C. § 1501"
title: "26"
title_heading: "Internal Revenue Code"
number: "1501"
heading: "Privilege to file consolidated returns"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1501"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 6 — Consolidated Returns"
  - "Subchapter A — Returns and Payment of Tax"
---

# §1501. Privilege to file consolidated returns


An [affiliated group](/usc/26/864.md?p=e-5-A) 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](/usc/26/chstA/ch1.md) 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](/usc/26/864.md?p=e-5-A) consent to all the consolidated return regulations prescribed under [section 1502](/usc/26/1502.md) 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](/usc/26/864.md?p=e-5-A) 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](/usc/26/864.md?p=e-5-A).


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 367.)