StacksVerified U.S. regulatory reference

26 U.S.C. § 1378

Verified against govinfo.gov as of June 20, 2026View official text on govinfo.gov ↗
  1. (a)For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.
  2. (b)For purposes of this section, the term “permitted year” means a taxable year which—For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.
    1. (1)is a year ending December 31, or
    2. (2)is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.