Source: http://ecfr.io/Title-26/se26.9.1_1532_61
Timestamp: 2020-05-29 01:15:00
Document Index: 182113251

Matched Legal Cases: ['§1', 'art 1', '§1', 'art 1', '§1', 'art 1', '§1', '§1', '§1']

[26 CFR §1.532-1] Title 26 Part 1 → §1.532-1 : Code of Federal Regulations ';
Title 26 Part 1 → §1.532-1
Title 26 → Chapter I → Subchapter A → Part 1 → §1.532-1
§1.532-1 Corporations subject to accumulated earnings tax.
(a) General rule. (1) The tax imposed by section 531 applies to any domestic or foreign corporation (not specifically excepted under section 532(b) and paragraph (b) of this section) formed or availed of to avoid or prevent the imposition of the individual income tax on its shareholders, or on the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of dividing or distributing them. See section 533 and §1.533-1, relating to evidence of purpose to avoid income tax with respect to shareholders.
(b) Exceptions. The accumulated earnings tax imposed by section 531 does not apply to a personal holding company (as defined in section 542), to a foreign personal holding company (as defined in section 552), or to a corporation exempt from tax under subchapter F, chapter 1 of the Code.
(c) Foreign corporations. Section 531 is applicable to any foreign corporation, whether resident or nonresident, with respect to any income derived from sources, within the United States, if any of its shareholders are subject to income tax on the distributions of the corporation by reason of being (1) citizens or residents of the United States, or (2) nonresident alien individuals to whom section 871 is applicable, or (3) foreign corporations if a beneficial interest therein is owned directly or indirectly by any shareholder specified in subparagraph (1) or (2) of this paragraph.