Income from some types of business entities is taxed twice.

Name: Income from some types of business entities is taxed twice.
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

Some business entities, such as C corporations, are taxed twice. First, the corporation is taxed on its profits at the corporate tax rate. Then, when those profits are distributed to the shareholders as dividends, they are taxed again on the shareholders' individual tax returns at the individual tax rate. This is commonly known as double taxation.

Income from Some Types of Business Entities Is Taxed Twice