### Question
How does NORMAL TAXES AND SURTAXES define qualifying specified payment?


### Answer
Under *26 U.S.C. § 512*, **qualifying specified payment** is defined as:

> a specified payment which is made pursuant to—


(I) a binding written contract in effect on the date of the enactment of this subparagraph, or


(II) a contract which is a renewal, under substantially similar terms, of a contract described in subclause (I)

#### Citation:
  - *26 U.S.C. § 512*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART III-TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS**

