### Question
Can you define what tax liability means?


### Answer
**Tax liability** is defined as the following in *26 U.S.C. § 995*:

> the amount of the tax imposed by this chapter for the taxable year reduced by credits allowable against such tax (other than credits allowable under sections 31, 32, and 34)

#### Citation:
  - *26 U.S.C. § 995*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART IV-DOMESTIC INTERNATIONAL SALES CORPORATIONS > Subpart B-Treatment of Distributions to Shareholders**

