# 26 U.S.C. § 535: Accumulated taxable income

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t26_s535

## Section

- **Citation:** 26 U.S.C. § 535
- **Heading:** Accumulated taxable income
- **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

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.)

## 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_s535. Check the current official text before relying on it. Not legal advice.