A corporation cannot avoid the accumulated earnings tax by demonstrating that it plans to distribute earnings at a later date.

Name: A corporation cannot avoid the accumulated earnings tax by demonstrating that it plans to distribute earnings at a later date.
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Question

Quizplus · Accepted Answer

Corporations must demonstrate a specific, definite, and feasible plan for the use of accumulated earnings to avoid the tax, not just a general intention to distribute them later.

A Corporation Cannot Avoid the Accumulated Earnings Tax by Demonstrating