### Question
What is the definition of Federal long-term contract?


### Answer
The definition of **Federal long-term contract** is as follows in *26 U.S.C. § 460*:

> any long-term contract—


(A) to which the United States (or any agency or instrumentality thereof) is a party, or


(B) which is a subcontract under a contract described in subparagraph (A)

#### Citation:
  - *26 U.S.C. § 460*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

