### Question
How does the law define 2-percent portion?


### Answer
Under *26 U.S.C. § 6601*, **2-percent portion** is defined as:

> the lesser of—


(A)(i) the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the sum of $1,000,000 and the applicable exclusion amount in effect under section 2010(c), reduced by


(ii) the applicable credit amount in effect under section 2010(c), or


(B) the amount of the tax imposed by chapter 11 which is extended as provided in section 6166

#### Citation:
  - *26 U.S.C. § 6601*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 67-INTEREST > Subchapter A-Interest on Underpayments**

