§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 ; Nov. 10, 1988, Pub. L. 100–647, title I, §1001(a)(2)(A), 102 Stat. 3349 ; Aug. 10, 1993, Pub. L. 103–66, title XIII, §§13201(b)(1), 13202(b), 107 Stat. 459 , 461.)

Amendments

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."

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."

Cross References

Adjustments for-

Accumulated taxable income as excluding deduction for tax imposed by this section, see section 535 of this title.

Undistributed foreign personal holding company income as excluding deduction for tax imposed by this section, see section 556 of this title.

Undistributed personal holding company income as excluding deduction for tax imposed by this section, see section 545 of this title.

Foreign tax credit disallowed for tax imposed by this section, see section 901 of this title.

Notification by Secretary informing taxpayer that proposed notice of deficiency includes an amount with respect to tax imposed by this section, see section 534 of this title.

Provisions for computation of tax on change of annual accounting period upon making returns for period less than 12 months as inapplicable in computation of tax imposed by this section, see section 536 of this title.

Recovery exclusion with respect to recovery of bad debts, prior taxes, and delinquency amounts, see section 111 of this title.

Section Referred to in Other Sections

This section is referred to in sections 12, 26, 111, 532, 534, 535, 536, 545, 556, 563, 936, 1297, 6601, 7518 of this title; title 46 App. section 1177.