26 U.S.C. § 532
Corporations subject to accumulated earnings tax
# (a) General rule
The accumulated earnings tax imposed by section 531 shall apply to every corporation (other than those described in subsection (b)) formed or availed of for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of being divided or distributed.
# (b) Exceptions
The accumulated earnings tax imposed by section 531 shall not apply to— (1) a personal holding company (as defined in section 542), (2) a corporation exempt from tax under subchapter F (section 501 and following), or (3) a passive foreign investment company (as defined in section 1297).
# (c) Application determined without regard to number of shareholders
The application of this part to a corporation shall be determined without regard to the number of shareholders of such corporation.
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Cited by 6
- 26 CFR § 1.531-1 — Imposition of tax.
- 26 CFR § 1.532-1 — Corporations subject to accumulated earnings tax.
- 26 CFR § 1.881-1 — Manner of taxing foreign corporations.
- 26 U.S.C. § 139H — Interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction
- 26 U.S.C. § 531 — Imposition of accumulated earnings tax
- 26 U.S.C. § 533 — Evidence of purpose to avoid income tax
Nearby sections (25 sections)
- 514 · Unrelated debt-financed income
- 515 · Taxes of foreign countries and possessions of the United States
- 521 · Exemption of farmers’ cooperatives from tax
- 522 · Repealed. Pub. L. 87–834, § 17(b)(2), Oct. 16, 1962, 76 Stat. 1051
- 526 · Shipowners’ protection and indemnity associations
- 527 · Political organizations
- 528 · Certain homeowners associations
- 529 · Qualified tuition programs
- 529A · Qualified ABLE programs
- 530 · Coverdell education savings accounts
- 530A · Trump accounts
- 531 · Imposition of accumulated earnings tax
- 532 · Corporations subject to accumulated earnings tax
- 533 · Evidence of purpose to avoid income tax
- 534 · Burden of proof
- 535 · Accumulated taxable income
- 536 · Income not placed on annual basis
- 537 · Reasonable needs of the business
- 541 · Imposition of personal holding company tax
- 542 · Definition of personal holding company
- 543 · Personal holding company income
- 544 · Rules for determining stock ownership
- 545 · Undistributed personal holding company income
- 546 · Income not placed on annual basis
- 547 · Deduction for deficiency dividends