26 U.S.C. § 532
§ 532. Corporations subject to accumulated earnings tax
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Part of the code since 1954. Last changed December 21, 2005 by the Gulf Opportunity Zone Act of 2005.
Every change, newest first (5)
- December 21, 2005Gulf Opportunity Zone Act of 2005
- August 5, 1997Taxpayer Relief Act of 1997
- October 22, 1986Tax Reform Act of 1986
- July 18, 1984Deficit Reduction Act of 1984
- August 16, 1954Internal Revenue Code of 1954 (original text)
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
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.
The accumulated earnings tax imposed by section 531 shall not apply to—
a personal holding company (as defined in section 542),
a corporation exempt from tax under subchapter F (section 501 and following), or
a passive foreign investment company (as defined in section 1297).
The application of this part to a corporation shall be determined without regard to the number of shareholders of such corporation.