The definition of an expanded affiliated group (EAG) for DPAD purposes is broader than that applicable to the filing of consolidated tax returns.

Question

Quizplus · Accepted Answer

The definition of an EAG for DPAD (Domestic Production Activities Deduction) purposes includes not only entities that are consolidated for tax return purposes but also unconsolidated entities that meet certain ownership and control requirements. Therefore, the EAG definition for DPAD purposes is broader than the one for filing consolidated tax returns.

The Definition of an Expanded Affiliated Group (EAG) for DPAD