# 26 U.S.C. § 532: Corporations subject to accumulated earnings tax

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t26_s532

## Section

- **Citation:** 26 U.S.C. § 532
- **Heading:** Corporations subject to accumulated earnings tax
- **Jurisdiction:** Federal
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** September 16, 2026
- **Source:** Publisher's official text
- **Location:** 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

## Text

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 .)

## Nearby sections

- [26 U.S.C. § 531 Imposition of accumulated earnings tax](https://www.frixlaw.com/law-library/statutes/usc_t26_s531.md)
- [26 U.S.C. § 532 Corporations subject to accumulated earnings tax](https://www.frixlaw.com/law-library/statutes/usc_t26_s532.md)
- [26 U.S.C. § 533 Evidence of purpose to avoid income tax](https://www.frixlaw.com/law-library/statutes/usc_t26_s533.md)
- [26 U.S.C. § 534 Burden of proof](https://www.frixlaw.com/law-library/statutes/usc_t26_s534.md)
- [26 U.S.C. § 535 Accumulated taxable income](https://www.frixlaw.com/law-library/statutes/usc_t26_s535.md)
- [26 U.S.C. § 536 Income not placed on annual basis](https://www.frixlaw.com/law-library/statutes/usc_t26_s536.md)
- [26 U.S.C. § 537 Reasonable needs of the business](https://www.frixlaw.com/law-library/statutes/usc_t26_s537.md)
- [26 U.S.C. § 541 Imposition of personal holding company tax](https://www.frixlaw.com/law-library/statutes/usc_t26_s541.md)
- [26 U.S.C. § 542 Definition of personal holding company](https://www.frixlaw.com/law-library/statutes/usc_t26_s542.md)
- [26 U.S.C. § 543 Personal holding company income](https://www.frixlaw.com/law-library/statutes/usc_t26_s543.md)
- [26 U.S.C. § 544 Rules for determining stock ownership](https://www.frixlaw.com/law-library/statutes/usc_t26_s544.md)
- [26 U.S.C. § 545 Undistributed personal holding company income](https://www.frixlaw.com/law-library/statutes/usc_t26_s545.md)
- [26 U.S.C. § 546 Income not placed on annual basis](https://www.frixlaw.com/law-library/statutes/usc_t26_s546.md)
- [26 U.S.C. § 547 Deduction for deficiency dividends](https://www.frixlaw.com/law-library/statutes/usc_t26_s547.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t26_s532. Check the current official text before relying on it. Not legal advice.