### Question
What is the definition of subchapter C earnings and profits?


### Answer
The definition of **subchapter C earnings and profits** is as follows in *26 U.S.C. § 1362*:

> earnings and profits of any corporation for any taxable year with respect to which an election under section 1362(a) (or under section 1372 of prior law) was not in effect

#### Citation:
  - *26 U.S.C. § 1362*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART I-IN GENERAL**

