A bill to amend subchapter G of chapter 1 of the Internal Revenue Code of 1954 (relating to the accumulated earnings tax).

Provides under the Internal Revenue Code of 1959 that a corporation prove by a preponderance of evidence that accumulation of earings and profits beyond the reasonable needs of the business was not done with the purpose of avoiding income tax with respect to shareholders.

Provides that in any proceeding before the Tax Court the burden of proving the allegation that all or any part of the earnings and profits have been permitted to accumulate beyond the reasonable needs of the business shall be on the Secretary of the Treasury or his delegate with respect to grounds not set forth in the notice of deficiency to the taxpayer.

Requires that the notification informing a taxpayer of the proposed notice of deficiency state the grounds and facts sufficient to show the basis thereof on which the Secretary or his delegate has relied in determining that all or part of the earnings and profits of the taxpayer have been permitted to accumulate beyond the reasonable needs of its business.

Increases the accumulated earnings credit (presently $100,000) in accordance with the following table: 1973-$150,000, 1974-$200,000, 1975 and thereafter $250,000.