CONTROLLED GROUP

controlled group. Tax. Two or more corporations whose stock is substantially held by five or fewer persons. • The Internal Revenue Code subjects these entities (such as parent-subsidiary or brother-sister groups) to special rules for computing tax liability. — Also termed controlled corporate groups. IRC (26 USCA) §§ 851(c)(3), 1563(a). [Cases: Internal Revenue 3870–3880. C.J.S. […]