---
kind: "section"
citation: "39 U.S.C. § 3634"
title: "39"
title_heading: "Postal Service"
number: "3634"
heading: "Assumed Federal income tax on competitive products income"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/39/3634"
units:
  - "Part IV — Mail Matter"
  - "Chapter 36 — Postal Rates, Classes, and Services"
  - "Subchapter II — Provisions Relating to Competitive Products"
---

# §3634. Assumed Federal income tax on competitive products income

- (a) **Definitions.—** For purposes of this section—
  - (1) the term “assumed Federal income tax on competitive [products](/usc/39/102.md?p=6) income” means the net income tax that would be imposed by [chapter 1](/usc/39/chptI/ch1.md) of the Internal Revenue Code of 1986 on the [Postal Service](/usc/39/102.md?p=1)’s assumed taxable income from competitive [products](/usc/39/102.md?p=6) for the year; and
  - (2) the term “assumed taxable income from competitive [products](/usc/39/102.md?p=6)”, with respect to a year, refers to the amount representing what would be the taxable income of a corporation under the Internal Revenue Code of 1986 for the year, if—
    - (A) the only activities of such corporation were the activities of the [Postal Service](/usc/39/102.md?p=1) allocable under [section 2011(h)](/usc/39/2011.md?p=h) to competitive [products](/usc/39/102.md?p=6); and
    - (B) the only assets held by such corporation were the assets of the [Postal Service](/usc/39/102.md?p=1) allocable under [section 2011(h)](/usc/39/2011.md?p=h) to such activities.
- (b) **Computation and Transfer Requirements.—** The [Postal Service](/usc/39/102.md?p=1) shall, for each year beginning with the year in which occurs the deadline for the [Postal Service](/usc/39/102.md?p=1)’s first report to the Postal Regulatory Commission under [section 3652(a)](/usc/39/3652.md?p=a)—
  - (1) compute its assumed Federal income tax on competitive [products](/usc/39/102.md?p=6) income for such year; and
  - (2) transfer from the Competitive [Products](/usc/39/102.md?p=6) Fund to the [Postal Service](/usc/39/102.md?p=1) Fund the amount of that assumed tax.
- (c) **Deadline for Transfers.—** Any transfer required to be made under this section for a year shall be due on or before the January 15th next occurring after the close of such year.

## Source credit

(Added Pub. L. 109–435, title IV, § 402, Dec. 20, 2006, 120 Stat. 3226.)

## Notes

### Editorial Notes

### References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a), is classified to Title 26, Internal Revenue Code.