
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 101(c)(4)]
[CITE: 26USC531]

 
                     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
 
Sec. 531. Imposition of accumulated earnings tax

    In addition to other taxes imposed by this chapter, there is hereby 
imposed for each taxable year on the accumulated taxable income (as 
defined in section 535) of each corporation described in section 532, an 
accumulated earnings tax equal to 39.6 percent of the accumulated 
taxable income.

(Aug. 16, 1954, ch. 736, 68A Stat. 179; Pub. L. 100-647, title I, 
Sec. 1001(a)(2)(A), Nov. 10, 1988, 102 Stat. 3349; Pub. L. 103-66, title 
XIII, Secs. 13201(b)(1), 13202(b), Aug. 10, 1993, 107 Stat. 459, 461.)


                               Amendments

    1993--Pub. L. 103-66, Sec. 13202(b), substituted ``39.6 percent'' 
for ``36 percent''.
    Pub. L. 103-66, Sec. 13201(b)(1), substituted ``36 percent'' for 
``28 percent''.
    1988--Pub. L. 100-647 amended section generally. Prior to amendment, 
section read as follows: ``In addition to other taxes imposed by this 
chapter, there is hereby imposed for each taxable year on the 
accumulated taxable income (as defined in section 535) of every 
corporation described in section 532, an accumulated earnings tax equal 
to the sum of--
        ``(1) 27\1/2\ percent of the accumulated taxable income not in 
    excess of $100,000, plus
        ``(2) 38\1/2\ percent of the accumulated taxable income in 
    excess of $100,000.''


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable to taxable years beginning 
after Dec. 31, 1992, see sections 13201(c) and 13202(c) of Pub. L. 103-
66, set out as notes under section 1 of this title.


                    Effective Date of 1988 Amendment

    Section 1001(a)(2)(B) of Pub. L. 100-647 provided that: ``The 
amendment made by subparagraph (A) [amending this section] shall apply 
to taxable years beginning after December 31, 1987. Such amendment shall 
not be treated as a change in a rate of tax for purposes of section 15 
of the 1986 Code.''

                  Section Referred to in Other Sections

    This section is referred to in sections 12, 26, 30A, 111, 532, 534, 
535, 536, 545, 556, 563, 936, 1298, 6601, 7518 of this title; title 46 
App. section 1177.
