Chapter 12 of tax

Question	Answer
accumulated earnings tax	a penalty tax levied on corporations accumulating income beyond the reasonable needs of the business to avoids paying dividends to their shareholders. The tax is levied in addition
constructive dividend	a distribution by a corporation to a shareholder that the corporation classifies as salary, interest, rent, or some other type of payment but that the IRS classifies as a dividend
controlled group	a brother-sister group of corporations owned by the same individual shareholders or a parent-subsidiary group of corporations.
personal holding company	a corporation owned by a small number of individuals that receives taxable income consisting primarily of nonbusiness income such as dividends, interest, rents, and royalties
personal holding company tax	a penalty tax levied on personal holding companies in addition to the regular corporate income tax
thin capitalization	a corporate structure with a high ratio of debt to equity

Resource summary

	Created by Stephany Fox over 8 years ago