### Question
How is the "severely financially distressed employer" defined?


### Answer
The term **severely financially distressed employer** is defined in *26 U.S.C. § 3134* as follows -

> an eligible employer as defined in paragraph (2), determined by substituting "less than 10 percent" for "less than 80 percent" in subparagraph (A)(ii)(II) thereof

#### Citation:
  - *26 U.S.C. § 3134*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 21-FEDERAL INSURANCE CONTRIBUTIONS ACT > Subchapter D-Credits**

