In contrast to a regular corporation, an S corporation's pass-through of income and deductions to its shareholders allows it to avoid double taxation of the same source of income.

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This is a true statement. S corporations are able to avoid the double taxation that is common in regular corporations by passing through their income and deductions to their shareholders. This means that profits of the corporation are only taxed at the individual shareholder level, rather than being subject to corporate-level taxation and then individual-level taxation.

In Contrast to a Regular Corporation, an S Corporation's Pass-Through