39 USC § 3634 - Assumed Federal income tax on competitive products income

---
identifier: "/us/usc/t39/s3634"
source: "usc"
legal_status: "official_legal_evidence"
title: "39 USC § 3634 - Assumed Federal income tax on competitive products income"
title_number: 39
title_name: "POSTAL SERVICE"
section_number: "3634"
section_name: "Assumed Federal income tax on competitive products income"
chapter_number: 36
chapter_name: "POSTAL RATES, CLASSES, AND SERVICES"
subchapter_number: "II"
subchapter_name: "PROVISIONS RELATING TO COMPETITIVE PRODUCTS"
part_number: "IV"
part_name: "MAIL MATTER"
positive_law: true
currency: "119-84"
last_updated: "2026-03-26"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 109–435, title IV, § 402, Dec. 20, 2006, 120 Stat. 3226.)"
---


# § 3634. Assumed Federal income tax on competitive products income

**(a)** **Definitions.—** For purposes of this section—

**(1)** the term “assumed Federal income tax on competitive products income” means the net income tax that would be imposed by chapter 1 of the Internal Revenue Code of 1986 on the Postal Service’s assumed taxable income from competitive products for the year; and

**(2)** the term “assumed taxable income from competitive products”, with respect to a year, refers to the amount representing what would be the taxable income of a corporation under the Internal Revenue Code of 1986 for the year, if—

**(A)** the only activities of such corporation were the activities of the Postal Service allocable under section 2011(h) to competitive products; and

**(B)** the only assets held by such corporation were the assets of the Postal Service allocable under section 2011(h) to such activities.

**(b)** **Computation and Transfer Requirements.—** The Postal Service shall, for each year beginning with the year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a)—

**(1)** compute its assumed Federal income tax on competitive products income for such year; and

**(2)** transfer from the Competitive Products Fund to the Postal Service Fund the amount of that assumed tax.

**(c)** **Deadline for Transfers.—** Any transfer required to be made under this section for a year shall be due on or before the January 15th next occurring after the close of such year.

---

**Source Credit**: (Added Pub. L. 109–435, title IV, § 402, Dec. 20, 2006, 120 Stat. 3226.)

## Editorial Notes

### References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a), is classified to Title 26, Internal Revenue Code.