Internal Revenue Code · 26 U.S.C.
§ 531. Imposition of accumulated earnings tax
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 531
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- November 10, 1988 by Pub. L. 100–647
- Last amended
- January 2, 2013 by Pub. L. 112–240
- Amendments
- 4 dated changes in the source credit
- Length
- 123 words · about 1 min to read
- Cross-references
- cites 2; cited by 12 Code sections and 27 other regulations
- Regulations
- 1 issued under this section
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 20 percent of the accumulated taxable income.
(Aug. 16, 1954, ch. 736, 68A Stat. 179; Pub. L. 100–647, title I, § 1001(a)(2)(A), Nov. 10, 1988, 102 Stat. 3349; Pub. L. 103–66, title XIII, §§ 13201(b)(1), 13202(b), Aug. 10, 1993, 107 Stat. 459, 461; Pub. L. 107–16, title I, § 101(c)(4), June 7, 2001, 115 Stat. 43; Pub. L. 108–27, title III, § 302(e)(5), May 28, 2003, 117 Stat. 764; Pub. L. 112–240, title I, § 102(c)(1)(A), Jan. 2, 2013, 126 Stat. 2319.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 531
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
Cited by 12 Code sections
- § 12(2) Cross references relating to tax on corporations
- § 26(b)(2)(F) Limitation based on tax liability; definition of tax liability
- § 111(d) Recovery of tax benefit items
- § 532(a) Corporations subject to accumulated earnings tax
- § 534(b) Burden of proof
- § 535(b)(1) Accumulated taxable income
- § 536 Income not placed on annual basis
- § 545(b)(1) Undistributed personal holding company income
- § 563(a) Rules relating to dividends paid after close of taxable year
- § 1298(b)(7)(A)(i) Special rules
- § 6601(b)(3) Interest on underpayment, nonpayment, or extensions of time for payment, of tax
- § 7518(c)(1)(E) Tax incentives relating to merchant marine capital construction funds
Cited in 27 regulations not issued under it
- § 1.11-1 Tax on corporations.
- § 1.50A-1 Determination of amount.
- § 1.111-1 Recovery of certain items previously deducted or credited.
- § 1.280H-1T Limitation on certain amounts paid to employee-owners by personal service corporations electing alternative taxable years (temporary).
- § 1.468A-4 Treatment of nuclear decommissioning fund.
- § 1.468B-2 Taxation of qualified settlement funds and related administrative requirements.
- § 1.532-1 Corporations subject to accumulated earnings tax.
- § 1.534-2 Burden of proof as to unreasonable accumulations in cases before the Tax Court.
- § 1.535-1 Definition.
- § 1.535-2 Adjustments to taxable income.
- § 1.541-1 Imposition of tax.
- § 1.545-2 Adjustments to taxable income.
- § 1.563-1 Accumulated earnings tax.
- § 1.882-4 Allowance of deductions and credits to foreign corporations.
- § 1.991-1 Taxation of a domestic international sales corporation.
- § 1.1298-0 Passive foreign investment company—table of contents.
- § 1.1298-4 Rules for certain foreign corporations owning stock in 25-percent-owned domestic corporations.
- § 1.1502-2 Computation of tax liability.
- § 1.1502-3 Consolidated tax credits.
- § 1.1502-43 Consolidated accumulated earnings tax.
- § 1.6664-2 Underpayment.
- § 2.1 Statutory provisions; sections 511 and 905, Merchant Marine Act, 1936, and related statutes.
- § 2.1-2 Scope of section 511 of the Act and the regulations in this part.
- § 2.1-16 Tax liability as to earnings deposited.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 112–240
- Amended by Pub. L. 108–27
- Amended by Pub. L. 107–16
- Amended by Pub. L. 103–66
- Enacted by Pub. L. 100–647
Where it sits in the 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
Nearby sections
- § 531 Imposition of accumulated earnings tax
- § 532 Corporations subject to accumulated earnings tax
- § 533 Evidence of purpose to avoid income tax
- § 534 Burden of proof
- § 535 Accumulated taxable income
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2013—Pub. L. 112–240 substituted “20 percent” for “15 percent”.
2003—Pub. L. 108–27 substituted “equal to 15 percent of the accumulated taxable income.” for “equal to the product of the highest rate of tax under section 1(c) and the accumulated taxable income.”
2001—Pub. L. 107–16 substituted “equal to the product of the highest rate of tax under section 1(c) and the accumulated taxable income.” for “equal to 39.6 percent of the accumulated taxable income.”
1993—Pub. L. 103–66, § 13202(b), substituted “39.6 percent” for “36 percent”.
Pub. L. 103–66, § 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) 27½ percent of the accumulated taxable income not in excess of $100,000, plus
“(2) 38½ percent of the accumulated taxable income in excess of $100,000.”
Statutory Notes and Related Subsidiaries
Effective Date of 2013 Amendment
Amendment by Pub. L. 112–240 applicable to taxable years beginning after Dec. 31, 2012, see section 102(d)(1) of Pub. L. 112–240, set out as a note under section 1 of this title.
Effective Date of 2003 Amendment
Amendment by Pub. L. 108–27 applicable, except as otherwise provided, to taxable years beginning after Dec. 31, 2002, see section 302(f) of Pub. L. 108–27, set out as an Effective and Termination Dates of 2003 Amendment note under section 1 of this title.
Effective Date of 2001 Amendment
Amendment by Pub. L. 107–16 applicable to taxable years beginning after Dec. 31, 2000, see section 101(d)(1) of Pub. L. 107–16, set out as an Effective and Termination Dates of 2001 Amendment note under section 1 of this title.
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
Pub. L. 100–647, title I, § 1001(a)(2)(B), Nov. 10, 1988, 102 Stat. 3349, 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.”