{"data":{"id":"us/26-u.s.c.-533","jurisdiction":"us","citation":"26 U.S.C. § 533","heading":"Evidence of purpose to avoid income tax","body":"(a) Unreasonable accumulation determinative of purposeFor 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. (b) Holding or investment companyThe 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.","path":["Title 26—INTERNAL REVENUE CODE","CHAPTER 1—NORMAL TAXES AND SURTAXES"],"source_url":"https://uscode.house.gov/download/releasepoints/us/pl/119/103/xml_usc26@119-103.zip","current_through":"Public Law 119-103 (09/02/2026)","vintage":"","retrieved_at":"2026-09-10T05:58:25Z","sha256":"ba062789a3d03300617bb33a976e54038ca9ce149bdc898b9e9bbce13d038e2f","source_id":"us","stale":false,"prev":"us/26-u.s.c.-532","next":"us/26-u.s.c.-534"},"notice":"GroundRules: Original legal text. Not legal advice."}