Which of the following statements is incorrect?
A)A domestic subsidiary's earnings are taxed in the year earned.
B)A foreign corporation's (less than 50% ownership)are not taxed until repatriated.
C)All of a controlled foreign corporation's earnings are taxed as earned.
D)U)S. taxpayers with a foreign branch can reduce part or all of their U.S. taxes by the foreign tax credit.

Question

Quizplus · Accepted Answer

A controlled foreign corporation's earnings are generally not taxed as earned; they are taxed when repatriated, unless they fall under specific anti-deferral rules like Subpart F income.

Which of the Following Statements Is Incorrect