### Question
What does deferral ratio mean?


### Answer
**Deferral ratio** has the following meaning in *26 U.S.C. § 7519*:

> the ratio which the number of months in the deferral period of the base year bears to the number of months in the partnership's or S corporation's taxable year

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

