A more thorough explanation:

A consolidated return is a type of tax return that combines the financial information of multiple entities into a single tax return. This is often done by companies that have subsidiaries or other related entities.

For example, if a parent company owns several smaller companies, they may choose to file a consolidated return that includes the financial information of all of those companies. This can help simplify the tax filing process and may result in lower overall tax liability.

The consolidated return includes income, deductions, and exemptions for all of the entities included in the return. The tax liability is then calculated based on this combined information.

Overall, a consolidated return can be a useful tool for companies with multiple entities to streamline their tax filing process and potentially reduce their tax liability.