### Question
How is the term Federal long-term contract defined?


### Answer
The term **Federal long-term contract** is defined in *26 U.S.C. § 460* as the following:

> 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**

