### Question
How does the law define qualified personal service corporation?


### Answer
Under *26 U.S.C. § 448*, **qualified personal service corporation** is defined as:

> any corporation—


(A) substantially all of the activities of which involve the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, and


(B) substantially all of the stock of which (by value) is held directly (or indirectly through 1 or more partnerships, S corporations, or qualified personal service corporations not described in paragraph (2) or (3) of subsection (a)) by—


(i) employees performing services for such corporation in connection with the activities involving a field referred to in subparagraph (A),


(ii) retired employees who had performed such services for such corporation,


(iii) the estate of any individual described in clause (i) or (ii), or


(iv) any other person who acquired such stock by reason of the death of an individual described in clause (i) or (ii) (but only for the 2-year period beginning on the date of the death of such individual)

#### Citation:
  - *26 U.S.C. § 448*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart A-Methods of Accounting in General**

