The accumulated earnings tax is designed to prevent shareholders from avoiding tax at the shareholder level.

Name: The accumulated earnings tax is designed to prevent shareholders from avoiding tax at the shareholder level.
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The accumulated earnings tax is an additional tax imposed on a corporation that retains earnings beyond certain limits, with the purpose of encouraging the distribution of profits to shareholders as dividends and preventing tax avoidance at the shareholder level.

The Accumulated Earnings Tax Is Designed to Prevent Shareholders from Avoiding