### Question
How does Income Taxes define personal service corporation?


### Answer
Under *26 U.S.C. § 269A*, **personal service corporation** is defined as:

> a corporation the principal activity of which is the performance of personal services and such services are substantially performed by employee-owners

#### Citation:
  - *26 U.S.C. § 269A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

