SECTION 5. CONSOLIDATED

GROUPS

.01 In general —(1) Defined terms . For purposes of this revenue procedure, with regard to an affiliated group of corporations, as defined in section 1504 of the Code, filing, or required to file, a consolidated return for the taxable year (consolidated group)—

(a) Taxpayer . The term “taxpayer” includes a consolidated group.

(b) NOL . The term “NOL” includes, with regard to a consolidated taxable year, the excess of deductions over gross income, as determined under § 1.1502-11(a) of the Income Tax Regulations without regard to any consolidated net operating loss (CNOL) deduction.

(2) Manner of making elections . An Affirmative Election under section 3.01 of

this revenue procedure and a revocation described in section 4.01 of this revenue procedure are made by the agent for the consolidated group. An amended return described in section 3.02(3) of this revenue procedure is filed, and a Deemed Election under section 3.02 of this revenue procedure is deemed made, by the agent for the consolidated group. See § 1.1502-77(a) and (c). .02 Consequences of Affirmative and Deemed Elections . If the agent for the consolidated group makes an Affirmative Election or a Deemed Election, the consequences described in section 2.03(2) of this revenue procedure apply to the consolidated group. Therefore, for example, if a consolidated group has a CNOL a portion of which is a farming loss, and if the agent for the consolidated group makes an Affirmative Election or a Deemed Election, then the portion of the CNOL that is a farming loss can be carried back two taxable years, and the 80-percent limitation will apply to determine the deduction for the entire CNOL for each taxable year beginning in 2018, 2019, or 2020.

.03 Reliance on rules in § 1.1502-21 regarding application of the 80-percent

limitation . If a consolidated group makes an Affirmative Election or a Deemed Election, the consolidated group may choose to apply § 1.1502-21(a), (b)(1), (b) (2)(iv), and (c)(1)(i)(E), as revised by TD 9927 (85 FR 67966, Oct. 27, 2020), for its taxable years beginning in 2018, 2019, or 2020.