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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter G— Corporations Used to Avoid Income Tax on Shareholders · § 532

§ 532. Corporations subject to accumulated earnings tax

557 words·~3 min read·/usc/title-26/section-532

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.
(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.)
Connections12 cite this · traces to 4
21 references not yet in our index
  • Aug. 16, 1954, ch. 736
  • 68A Stat. 179
  • Pub. L. 98–369, div. A, title I, § 58(a)
  • 98 Stat. 574
  • Pub. L. 99–514, title XII, § 1235(f)(1)
  • 100 Stat. 2575
  • Pub. L. 105–34, title XI, § 1122(d)(1)
  • 111 Stat. 977
  • Pub. L. 109–135, title IV, § 403(n)(1)
  • 119 Stat. 2626
  • Pub. L. 109–135
  • Pub. L. 105–34
  • Pub. L. 99–514
  • Pub. L. 98–369
  • Pub. L. 108–357
  • section 403(nn) of Pub. L. 109–135
  • Pub. L. 105–34, title XI, § 1124
  • 111 Stat. 978
  • section 1235(h) of Pub. L. 99–514
  • Pub. L. 98–369, div. A, title I, § 58(c)
  • 98 Stat. 576
Citation graph
cites case law
§ 532
Corporations subject to accumulated earnings tax
U.S.C.×9
Stat.×3
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 179
Pub. L.Pub. L. 98–369, div. A, title I, § 58(a)
Stat.98 Stat. 574
Pub. L.Pub. L. 99–514, title XII, § 1235(f)(1)
Cites 25 · showing 9Cited by 12 across 2 sources
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