### Question
How does Income Taxes define ineligible corporation?


### Answer
Under *26 U.S.C. § 1361*, **ineligible corporation** is defined as:

> any corporation which is—


(A) a member of an affiliated group (determined under section 1504 without regard to the exceptions contained in subsection (b) thereof),


(B) a financial institution to which section 585 applies (or would apply but for subsection (c) thereof) or to which section 593 applies,


(C) an insurance company subject to tax under subchapter L,


(D) a corporation to which an election under section 936 applies, or


(E) a DISC or former DISC

#### Citation:
  - *26 U.S.C. § 1361*
  - 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**

