### Question
How is the term applicable payment defined?


### Answer
The term **applicable payment** is defined in *26 U.S.C. § 7519* as the following:

> amounts paid by a partnership or S corporation which are includible in gross income of a partner or shareholder

#### Citation:
  - *26 U.S.C. § 7519*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 77-MISCELLANEOUS PROVISIONS**

