Corporations subject to accumulated earnings tax

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Title 26—INTERNAL REVENUE CODE > Subtitle A—Income Taxes > CHAPTER 1—NORMAL TAXES AND SURTAXES > Subchapter G—Corporations Used to Avoid Income Tax on Shareholders > PART I—CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS

This text was captured on Sep 16, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

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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.

( Aug. 16, 1954, ch. 736 , 68A Stat. 179 ; Pub. L. 98–369, div. A, title I, § 58(a) , July 18, 1984 , 98 Stat. 574 ; Pub. L. 99–514, title XII, § 1235(f)(1) , Oct. 22, 1986 , 100 Stat. 2575 ; Pub. L. 105–34, title XI, § 1122(d)(1) , Aug. 5, 1997 , 111 Stat. 977 ; Pub. L. 109–135, title IV, § 403(n)(1) , Dec. 21, 2005 , 119 Stat. 2626 .)

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