Question

Corporations are required to compute and pay the accumulated earnings tax by the due date of...

Corporations are required to compute and pay the accumulated earnings tax by the due date of the tax return. T/F

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : False

Accumulated earnings tax is not a self-assessed tax. Upon review of a corporation, if IRS finds out that Retained Earnings of the corporation is beyond the reasonable needs of the business, accumulated earnings tax is imposed on that particular corporation . This makes it a penalty tax. Accumulated earnings tax is paid by corporation only when the IRS assesses the tax . Therefore, Accumulated earnings tax is not assessed or computed by the corporation Hence answer is 'False' '

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Wilson filed his individual tax return on the original due date but failed to pay 700...
Wilson filed his individual tax return on the original due date but failed to pay 700 in taxes that were due with the retun. If wilson pay the taxes exactly 2 months late, calculate the amount of his failure to pay penalty. $-----.
Calendar-year corporations that request an extension for filing their 2018 tax returns will have a tax...
Calendar-year corporations that request an extension for filing their 2018 tax returns will have a tax return due date of October 15. true /false
1. What is the purpose of the Accumulated Earnings Tax? 2. For purposes of the Accumulated...
1. What is the purpose of the Accumulated Earnings Tax? 2. For purposes of the Accumulated Earnings Tax, what are some examples of reasonable business needs for a corp to retain (accumulate) its earnings?
a corporations earnings have been growing at a constant rate and this pattern is expected to...
a corporations earnings have been growing at a constant rate and this pattern is expected to continue. The firm predicts earnings per share $15 for the next fiscal year and will pay out 30 percent of its earnings in dividends each year starting next year. The remaining portion of its earnings will be used to fund projects. The company’s common stock currently sells for $125 per share, and the required return is 13.54%. Assuming its historical return on equity (ROE)...
Your client is facing a possible personal holding company tax or accumulated earnings tax in 2017....
Your client is facing a possible personal holding company tax or accumulated earnings tax in 2017. Advise the client as to the total tax due and what the effective tax rate will be for this manufacturing company based on these facts: Taxable income $480,000 Dividends received deduction 15,000 Accumulated earnings credit 12,200 Dividends paid 60,000 Federal income taxes 158,400 Cost of Goods Sold 135,000 Excess charitable contributions 18,100 Round the effective tax rate answer to one decimal place. What is...
PSc 5-2 Determine the Taxable Earnings Subject to FUTA Tax For each of the described pay...
PSc 5-2 Determine the Taxable Earnings Subject to FUTA Tax For each of the described pay periods, determine the taxable earnings subject to FUTA tax. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1:A business employs four individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,275, $3,500, and $1,600. During the current pay period, these employees earn $1,500, $2,640, $1,252,...
For corporations, income tax expense on the financial statements is calculated: Group of answer choices Earnings...
For corporations, income tax expense on the financial statements is calculated: Group of answer choices Earnings before taxes x 21% The corporation's tax liability +- changes in deferred taxes Earnings before taxes x the corporation's tax rate The corporation's taxable income - tax deductions.
      Corporations are required to detail their book/tax differences on either Schedule M-1 or Schedule M-3...
      Corporations are required to detail their book/tax differences on either Schedule M-1 or Schedule M-3 attached to the corporate income tax return. Why is the IRS interested in this information?
The accumulated earnings tax is imposed on every corporation formed or availed for the purpose of...
The accumulated earnings tax is imposed on every corporation formed or availed for the purpose of avoiding income tax on its shareholders, by permitting earnings and profits to accumulate. Certain transactions may indicate a prohibited purpose. Which of the following is not one of these transactions? A. Loans to shareholders B. Accumulated earnings for use in a business expansion or for other bona fide business reasons C. The corporation's dividend history D. Investments in assets having no reasonable connection to...
In regards to the taxation of corporations, which of the following statements about federal tax return...
In regards to the taxation of corporations, which of the following statements about federal tax return filing dates is false? A corporation with a fiscal tax year ending on April 30 must file its unextended Form 1120 by August 15 following the close of the tax year. In regards to filing annual income tax returns, corporations, like individuals, must file by the 15th day of the fourth month following the close of the tax year. A corporation may request an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT