26 U.S. Code § 532 - Corporations subject to accumulated earnings tax
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 application of this part to a corporation shall be determined without regard to the number of shareholders of such corporation.
2005—Subsec. (b)(2) to (4). Pub. L. 109–135 redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follow: “a foreign personal holding company (as defined in section 552),”.
1997—Subsec. (b)(4). Pub. L. 105–34 substituted “section 1297” for “section 1296”.
1986—Subsec. (b)(4). Pub. L. 99–514 added par. (4).
1984—Subsec. (c). Pub. L. 98–369 added subsec. (c).
Amendment by Pub. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 403(nn) of Pub. L. 109–135, set out as a note under section 26 of this title.
Amendment by Pub. L. 99–514 applicable to taxable years of foreign corporations beginning after Dec. 31, 1986, see section 1235(h) of Pub. L. 99–514, set out as an Effective Date note under section 1291 of this title.
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