Consolidated Tax Return

DEFINITION of 'Consolidated Tax Return'

A comprehensive tax return that encompasses a group of smaller entities. Consolidated tax returns are often filed by business conglomerates on behalf of all subsidiary firms. They are filed both for simplicity and to allow the parent organization to receive tax benefits that may otherwise be forfeited. However, conglomerates do not need to file this type of return if they choose not to do so.

BREAKING DOWN 'Consolidated Tax Return'

Consolidated tax returns are filed using the same forms and rules as all other taxpaying entities; however, a parent-subsidiary relationship must exist in order to allow for this type of filing. The IRS has allowed consolidated tax returns for nearly 100 years, and rules for filing have remained largely unchanged since the 1960s.

RELATED TERMS
  1. IRS Publication 501

    A document published by the Internal Revenue Service that covers ...
  2. IRS Publication 17

    A document published by the Internal Revenue Service that outlines ...
  3. Joint Return

    A U.S. income tax return filed on behalf of a married couple, ...
  4. Individual Tax Return

    The type of tax return filed by an individual. Both single and ...
  5. Tax Year

    The period of time which is covered by a particular tax return. ...
  6. Final Return For Decedent

    The final tax return filed for an individual in the year of that ...
Related Articles
  1. Personal Finance

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
  2. Personal Finance

    Should You File An Early Tax Return?

    When it comes to filing your taxes, it can often pay to wait until the deadline.
  3. Personal Finance

    How to File Your Child's First Income Tax Return

    Use this quick parental guide to help your child learn the tax filing process and establish good habits.
  4. Personal Finance

    Newlyweds? Tips For Filing Your Tax Return

    For many couples, it pays to file for taxes together. But what are some of the obstacles you should watch out for?
  5. Personal Finance

    Inaccurate Tax Return, Now What?

    If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
  6. Personal Finance

    Tax Credits That Can Get You a Refund

    Here are a few of the credits that may result in a refund check, even if you owe no taxes this year.
  7. Personal Finance

    Get a 6-Month Tax Extension

    Discover how to get some extra time from the IRS, without paying a hefty penalty for the privilege.
  8. Personal Finance

    Missed the Tax Return Deadline? Here's What to Do

    Most important: Do it now.
  9. Personal Finance

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  10. Personal Finance

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
RELATED FAQS
  1. Do I need to file an income tax return every year?

    Understand if a person needs to file a tax return every year. Learn the benefits of filing a yearly income tax return even ... Read Answer >>
  2. Do we have to file taxes?

    Our only income is social security and a very small pension amount. We were told by our accountant that we did not need to ... Read Answer >>
  3. I made $2,700 last year. Do I need to file taxes if my job did not take taxes out ...

    I am married and filing separately. My job, despite my W4 being correct, did not take any taxes out of... Read Answer >>
  4. Does everyone have to file a federal tax return?

    This may come as a surprise to many individuals, but not everyone needs to file a federal tax return. According to the IRS, ... Read Answer >>
  5. Are mutual fund withdrawals all capital gains losses?

    Someone age 88 sells mutual fund shares. The 1099-B shows all sales to be capital gains losses. This person has no gains ... Read Answer >>
  6. Can I file 1040 business taxes for a small business, separately from my individual ...

    I have already filed my individual income taxes and received my refund. My husband has a towing busine... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center