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Tags make use of the hierarchical structure of outline trees. If a heading has a certain tag, all subheadings will inherit the tag as well. For example, in the list
* Meeting with the French group :work:
** Summary by Frank :boss:notes:
*** TODO Prepare slides for him :action:
the final heading will have the tags `:work:', `:boss:', `:notes:', and `:action:' even though the final heading is not explicitly marked with those tags. You can also set tags that all entries in a file should inherit as if these tags would be defined in a hypothetical level zero that surounds the entire file.
#+FILETAGS: :Peter:Boss:Secret:
To limit tag inheritance to specific tags, or to turn it off entirely, use
the variable org-use-tag-inheritance.
When a headline matches during a tags search while tag inheritance is turned
on, all the sublevels in the same tree will match as well1. The list of matches may then
become very long. If you only want to see the first tags match in a subtree,
configure the variable org-tags-match-list-sublevels.
[1] This is only true if the the search does not involve more complex tests including properties (see Property searches).