### Question
What does accumulated taxable income mean?


### Answer
**Accumulated taxable income** has the following meaning in *26 U.S.C. § 535*:

> the taxable income, adjusted in the manner provided in subsection (b), minus the sum of the dividends paid deduction (as defined in section 561) and the accumulated earnings credit (as defined in subsection (c))

#### Citation:
  - *26 U.S.C. § 535*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART I-CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS**

