A corporation can avoid the accumulated earnings tax by demonstrating that it has plans to distribute earnings at a later date.

Name: A corporation can avoid the accumulated earnings tax by demonstrating that it has plans to distribute earnings at a later date.
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Question

Quizplus · Accepted Answer

A corporation can avoid the accumulated earnings tax by demonstrating that the earnings are being retained for reasonable business needs, not merely by planning to distribute them later.

A Corporation Can Avoid the Accumulated Earnings Tax by Demonstrating