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.
Exceptions
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. 73668A Stat. 179Pub. L. 98–369, div. A, title I, § 58(a)98 Stat. 574Pub. L. 99–514, title XII, § 1235(f)(1)100 Stat. 2575Pub. L. 105–34, title XI, § 1122(d)(1)111 Stat. 977Pub. L. 109–135, title IV, § 403(n)(1)119 Stat. 2626(, ; , , ; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 109–1352005—Subsec. (b)(2) to (4). 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),”.
Pub. L. 105–341997—Subsec. (b)(4). substituted “section 1297” for “section 1296”.
Pub. L. 99–5141986—Subsec. (b)(4). added par. (4).
Pub. L. 98–3691984—Subsec. (c). added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Pub. L. 109–135Pub. L. 108–357section 403(nn) of Pub. L. 109–135section 26 of this titleAmendment by effective as if included in the provision of the American Jobs Creation Act of 2004, , to which such amendment relates, see , set out as a note under .
Effective Date of 1997 Amendment
Pub. L. 105–34, title XI, § 1124111 Stat. 978
Effective Date of 1986 Amendment
Pub. L. 99–514section 1235(h) of Pub. L. 99–514section 1291 of this titleAmendment by applicable to taxable years of foreign corporations beginning after , see , set out as an Effective Date note under .
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title I, § 58(c)98 Stat. 576