With the passage of the original Internal Revenue Code in 1913, the Congress recognized that it would be possible for individuals to avoid a large portion of the contemplated personal income taxes by forming a corporation and allowing the earnings to accumulate within the corporation. This prompted the inclusion of Section II-A (2) in the act of 1913, which placed a penalty upon stockholders if it was determined that the corporate form of organization was being used to avoid surtaxes. Since 1913, the major development in the Section has been the change in penalty from one imposed upon the stockholders to imposition upon the corporation. From time to time, there have been minor changes in the wording of the act, the number of the section, and the penalty percentages to be applied. None of these has caused any great change and the current Section 102, therefore, gives the basic ideas of the section from its inception. Further hints of policy are gained by considering the Treasury Decisions which are to be used as guides by the commissioners. Treasury Decision 4914, issued in 1939, gave instructions to give close attention to several classes of firms to determine the applicability of Section 102.