Where a group of affiliated corporations join in the filing of a federal consolidated income tax return, the IRS generally issues any consolidated tax refund to the parent of the group. It is then up to the group members (taking into account corporate law and contractual arrangements) to determine which member (or members) of the affiliated group is entitled to the refund. This determination has become a major source of litigation with potential claimants including creditors, affiliates, and shareholders.

 

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