§ 3634. Assumed Federal income tax on competitive products income

• (a) For purposes of this section—
  • (1) the term “assumed Federal income tax on competitive products income” means the net income tax that would be imposed by chapter 1 of the Internal Revenue Code of 1986 on the Postal Service’s assumed taxable income from competitive products for the year; and
  • (2) the term “assumed taxable income from competitive products”, 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 allocable under section 2011(h) to competitive products; and
    • (B) the only assets held by such corporation were the assets of the Postal Service allocable under section 2011(h) to such activities.
• (b) The Postal Service shall, for each year beginning with the year in which occurs the deadline for the Postal Service’s first report to the Postal Regulatory Commission under section 3652(a)—
  • (1) compute its assumed Federal income tax on competitive products income for such year; and
  • (2) transfer from the Competitive Products Fund to the Postal Service Fund the amount of that assumed tax.
• (c) 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.