### Question
How is the term related party defined?


### Answer
The term **related party** is defined in *26 U.S.C. § 267A* as the following:

> a related person as defined in section 954(d)(3), except that such section shall be applied with respect to the person making the payment described in paragraph (1) in lieu of the controlled foreign corporation otherwise referred to in such section

#### Citation:
  - *26 U.S.C. § 267A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

