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Internal Revenue Code, § 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 20 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, Sec. 13201(b)(1), 13202(b), 107 Stat. 312; June 7, 2001, Pub. L. 107-16, title I, 101(c)(4), 115 Stat. 38; May 28, 2003, Pub. L. 108-27, title III, 302(e), 117 Stat. 752; Pub. L. 112-240, title I, Sec. 102(c)(1)(A), Jan. 2, 2013, 126 Stat. 2313.)
BACKGROUND NOTES
This part is referred to in section 12 of this title.
AMENDMENTS
2013-Pub. L. 112-240 amended Sec. 531 by substituting “20 percent” for “15 percent”.
2003-Pub. L. 108-27 amended Sec. 531 by substituting “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 amended Sec. 531 by substituting “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.”
1993Pub. L. 103-66, Sec. 13201(b)(1), amended Sec. 531 by substituting “36 percent” for “28 percent”.
Pub. L. 103-66, Sec. 13202(b), amended Sec. 531 (after amendment by Pub. L. 103-66, Sec. 13201(b)(1)) by substituting “39.6 percent” for “36 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 2013 AMENDMENT
Amendment by Sec. 102 of Pub. L. 112-240 effective for taxable years beginning after December 31, 2012.
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Sec. 302 of Pub. L. 108-27 effective for taxable years beginning after December 31, 2002. Sec. 302(f)(2) of Pub. L. 108-27, as amended by Pub. L. 108-311, Sec. 402(a)(6), provided that:
“(2) Pass-thru Entities.--In the case of a pass-thru entity described in subparagraph (A), (B), (C), (D), (E), or (F) of section 1(h)(10) of the Internal Revenue Code of 1986, as amended by this Act, the amendments made by this section shall apply to taxable years ending after December 31, 2002; except that dividends received by such an entity on or before such date shall not be treated as qualified dividend income (as defined in section 1(h)(11)(B) of such Code, as added by this Act).”
Section 303 of Pub. L. 108-27, as amended by Sec. 102 of Pub. L. 109-222 and Sec. 102 of Pub. L. 111-312, and struck by Pub. L. 112-240, Sec. 102(a) (effective for taxable years beginning after Dec. 31, 2012), provided that:
“All provisions of, and amendments made by, this title shall not apply to taxable years beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such provisions and amendments had never been enacted.”
EFFECTIVE DATE OF 2001 AMENDMENT
Amendment by Pub. L. 107-16, Sec. 101(c)(4), effective for taxable years beginning after December 31, 2000.
Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, Sec. 101(a),and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Pub. L. 103-66, Sec. 13201(b)(1) and 13202(b), effective for taxable years beginning after December 31, 1992.
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.”