26 U.S.C. § 532 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 532. Corporations subject to accumulated earnings tax

(a) General rule.--The accumulated earnings tax imposed by section 531 shall apply to every corporation (other than those described in subsection (b)) formed or availed of for the purpose of avoiding the income tax with respect to its shareholders or the shareholders of any other corporation, by permitting earnings and profits to accumulate instead of being divided or distributed.

(b) Exceptions.--The accumulated earnings tax imposed by section 531 shall not apply to--

(c) Application determined without regard to number of shareholders.--The application of this part to a corporation shall be determined without regard to the number of shareholders of such corporation.