An additional tax on earnings that a business retains in an attempt to avoid the higher income taxes the owners would be subject to if the earnings were paid out to them as dividends. Also called accumulated profits tax.
Related information about accumulated earnings tax:
- Accumulated Earnings Tax Definition | Investopedia
A tax imposed by the federal government upon companies with retained earnings deemed to be unreasonable and in excess of what is considered ordinary.
- Accumulated Earnings Tax -- Warning, Your Company May Be at ...
The accumulated earnings tax (AET) is a penalty tax. It is imposed on C corporations perceived as trying to avoid or defer shareholder income tax through an ...
- 26 USC § 531 - Imposition of accumulated earnings tax | LII / Legal ...
In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the accumulated taxable income (as defined in section 535) ...
- Publication 542 (03/2012), Corporations
Accumulated Earnings Tax · Distributions to Shareholders · Money or Property Distributions · Distributions of Stock or Stock Rights · Constructive Distributions ...
- Corporate Accumulated Earnings Tax Lawyers | LegalMatch Law ...
Jul 3, 2012 ... Find Corporate Accumulated Earnings Tax Lawyers and Attorneys in your area. What is the Corporate Accumulated Earnings Tax.
- Accumulated Earnings Tax - Financial Dictionary - The Free Dictionary
In the United States, a tax on a corporation for retained earnings the IRS deems to be excessive. Retained earnings are profits that are not paid out in dividends.
- The Accumulated Earnings Tax - JStor
The accumulated earnings tax' is a penalty tax designed to dis- courage the ... penalty tax, known as the accumulated earnings tax, applies if the corporation is ...
- Accumulated Earnings Tax
Accumulated Earnings Tax. Determination of reasonable working capital. Reasonable working capital needs are generally determined as follows: ...