This document contains proposed regulations under section 1502 of the Internal Revenue Code (Code). The proposed regulations are necessary to update the regulations under section 1502 by revising and removing text that has become outdated as a result of changes in the law. The regulations affect corporations filing consolidated returns. This document also withdraws the notice of proposed rulemaking (REG-137519-01) published in the Federal Register on November 14, 2001 (66 FR 57021).  Treasury is considering whether we can achieve relevant statutory objectives at a lower cost.