26 U.S.C. § 1375: Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts

accumulated earnings and profits at the close of such taxable year, and gross receipts more than 25 percent of which are passive investment income, the amount by which the passive investment income for the taxable year exceeds 25 percent of the gross receipts for the taxable year, bears to the passive investment income for the taxable year. without regard to the deductions allowed by part VIII of subchapter B (other than the deduction allowed by section 248, relating to organization expenditures), and without regard to the deduction under section 172. passive investment income, reduced by the deductions allowable under this chapter which are directly connected with the production of such income (other than deductions allowable under section 172 and part VIII of subchapter B). The terms “passive investment income” and “gross receipts” have the same respective meanings as when used in paragraph (3) of section 1362(d). Notwithstanding paragraph (3), the amount of passive investment income shall be determined by not taking into account any recognized built-in gain or loss of the S corporation for any taxable year in the recognition period. Terms used in the preceding sentence shall have the same respective meanings as when used in section 1374. No credit shall be allowed under part IV of subchapter A of this chapter (other than section 34) against the tax imposed by subsection (a). it determined in good faith that it had no accumulated earnings and profits at the close of a taxable year, and during a reasonable period of time after it was determined that it did have accumulated earnings and profits at the close of such taxable year such earnings and profits were distributed,