To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.

Name: To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
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According to the IRS, a corporation can avoid the accumulated earnings tax by demonstrating a definite plan for the use of the accumulated earnings in a reasonable time frame.

To Avoid the Accumulated Earnings Tax, a Corporation Needs to Have