26 U.S.C. § 280H: Limitation on certain amounts paid to employee-owners by personal service corporations electing alternative taxable years

an election by a personal service corporation under section 444 is in effect for a taxable year, and such corporation does not meet the minimum distribution requirements of subsection (c) for such taxable year, If any amount is not allowed as a deduction for a taxable year under subsection (a), such amount shall be treated as paid or incurred in the succeeding taxable year. the applicable amounts paid during the preceding taxable year, divided by the number of months in such taxable year, multiplied by the number of months in the deferral period of the preceding taxable year, or the applicable percentage of the adjusted taxable income for the deferral period of the taxable year. the applicable amounts paid or incurred during the 3 taxable years immediately preceding the taxable year, by the adjusted taxable income of such corporation for such 3 taxable years. the applicable amounts paid during the deferral period, plus the amount determined under paragraph (1), divided by the number of months in the deferral period, multiplied by the number of months in the nondeferral period. No net operating loss carryback shall be allowed to (or from) any taxable year of a personal service corporation to which an election under section 444 applies. any gain from the sale or exchange of property between the owner-employee and the corporation, or any dividend paid by the corporation. The term “employee-owner” has the meaning given such term by section 269A(b)(2) (as modified by section 441(i)(2)). The term “deferral period” has the meaning given to such term by section 444(b)(4). The term “nondeferral period” means the portion of the taxable year of the personal service corporation which occurs after the portion of such year constituting the deferral period. any amount paid to an employee-owner which is includible in the gross income of such employee-owner, and any net operating loss carryover to the extent such carryover is attributable to amounts described in subparagraph (A). The term “personal service corporation” has the meaning given to such term by section 441(i)(2).