Internal Revenue Code · 26 U.S.C.
§ 533. Evidence of purpose to avoid income 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. § 533
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Length
- 2 subsections · 103 words · about 1 min to read
- Cross-references
- cites 1; cited by 0 Code sections and 3 other regulations
- Regulations
- 2 issued under this section
For purposes of section 532, the fact that the earnings and profits of a corporation are permitted to accumulate beyond the reasonable needs of the business shall be determinative of the purpose to avoid the income tax with respect to shareholders, unless the corporation by the preponderance of the evidence shall prove to the contrary.
The fact that any corporation is a mere holding or investment company shall be prima facie evidence of the purpose to avoid the income tax with respect to shareholders.
(Aug. 16, 1954, ch. 736, 68A Stat. 179.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 533
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited in 3 regulations not issued under it
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