Which of the following statements concerning the state taxation of S corporations is true?
A)The majority of states require that a separate S election be filed for state purposes.
B)Most states impose a corporate level tax on S corporations.
C)States that recognize S status generally tax distributions to shareholders as ordinary dividends.
D)Some states impose a corporate level tax on S corporations to the extent such income is allocable to nonresident shareholders.
E)None of the above

Question

Quizplus · Accepted Answer

Some states indeed impose a corporate level tax on S corporations specifically related to income that is allocable to nonresident shareholders. This approach allows states to tax income generated within their borders even if it is distributed to shareholders who do not reside in the state.

Which of the Following Statements Concerning the State Taxation of S