Accumulated taxable income

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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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For purposes of this subtitle, the term “accumulated taxable income” means the taxable income, adjusted in the manner provided in subsection (b), minus the sum of the dividends paid deduction (as defined in section 561) and the accumulated earnings credit (as defined in subsection (c)).

( Aug. 16, 1954, ch. 736 , 68A Stat. 180 ; Pub. L. 85–866, title I, § 31 , title II, § 205(a), Sept. 2, 1958 , 72 Stat. 1631 , 1680; Pub. L. 87–403, § 3(b) , Feb. 2, 1962 , 76 Stat. 6 ; Pub. L. 87–834, § 9(d)(2) , Oct. 16, 1962 , 76 Stat. 1001 ; Pub. L. 88–272, title II, § 207(b)(4) , Feb. 26, 1964 , 78 Stat. 42 ; Pub. L. 91–172, title IV, § 401(b)(2)(C) , title V, § 512(f)(5), (6), Dec. 30, 1969 , 83 Stat. 602 , 641; Pub. L. 94–12, title III, § 304(a) , Mar. 29, 1975 , 89 Stat. 45 ; Pub. L. 94–455, title X, § 1033(b)(3) , title XIX, §§ 1901(a)(74), (b)(20)(A), (32)(C), (33)(D), 1906(b)(13)(A), Oct. 4, 1976 , 90 Stat. 1628 , 1777, 1797, 1800, 1801, 1834; Pub. L. 97–34, title II, § 232(a) , (b)(1), Aug. 13, 1981 , 95 Stat. 250 ; Pub. L. 98–369, div. A, title I , §§ 58(b), 125(a), July 18, 1984 , 98 Stat. 575 , 647; Pub. L. 99–514, title XII, § 1225(a) , title XVIII, § 1899A(17), Oct. 22, 1986 , 100 Stat. 2558 , 2959; Pub. L. 101–508, title XI, § 11801(c)(18) , Nov. 5, 1990 , 104 Stat. 1388–528 ; Pub. L. 108–357, title IV, § 402(b)(1) , Oct. 22, 2004 , 118 Stat. 1492 ; Pub. L. 109–135, title IV, § 403(n)(2) , Dec. 21, 2005 , 119 Stat. 2626 ; Pub. L. 113–295, div. A, title II, § 221(a)(64) , Dec. 19, 2014 , 128 Stat. 4048 ; Pub. L. 115–97, title I , §§ 13001(b)(5)(B), 14301(c)(4), Dec. 22, 2017 , 131 Stat. 2098 , 2222.)

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