reg 11 2222021a

  1. ------------------------------- from the date the payment was due until it is received by the IRS.
    Interest accrues from the date the payment was due until it is received by the IRS.
  2. Finbury Corporation’s taxable income for the year ended December 31, 2019, was $2 million. For Finbury to escape the estimated tax underpayment penalty for the year ending December 31, 2020, its total 2020 estimated tax payments must equal at least
    100% of its 2020 tax liability.
  3. A large corporation is one having ------------------------------- income during any of its 3 preceding tax years.
    A large corporation is one having $1 million or more taxable income during any of its 3 preceding tax years.
  4. A----------------- is available for certain foreign income taxes paid or accrued.
    A credit is available for certain foreign income taxes paid or accrued.
  5. A single federal income tax return may be filed by two or more includible corporations that are members of an -------------------------.
    A single federal income tax return may be filed by two or more includible corporations that are members of an affiliated group.
  6. Acme Corp. has two shareholders. Acme derives all of its income from investments in stocks and securities, and it regularly distributes 51% of its taxable income as dividends to its shareholders. Acme is a
    Personal holding company.
  7. A corporation is a ------------------------------ if at least 60% of its adjusted ordinary gross income for the year is personal holding company income and if, at any time during the last half of the taxable year, more than 50% of the value of its outstanding stock is owned by not more than five individuals.
    A corporation is a personal holding company if at least 60% of its adjusted ordinary gross income for the year is personal holding company income and if, at any time during the last half of the taxable year, more than 50% of the value of its outstanding stock is owned by not more than five individuals.
  8. A corporation is a personal holding company if at least ------- of its adjusted ordinary gross income for the year is personal holding company income and if, at any time during the last half of the taxable year, more than 50% of the value of its outstanding stock is owned by not more than five individuals.
    A corporation is a personal holding company if at least 60% of its adjusted ordinary gross income for the year is personal holding company income and if, at any time during the last half of the taxable year, more than 50% of the value of its outstanding stock is owned by not more than five individuals.
  9. The minimum Accumulated Earnings Credit is
    $250,000 for non-personal service corporations.
  10. The Accumulated Earnings Credit is defined as the increase in the ----------------------------------------------------------
    The Accumulated Earnings Credit is defined as the increase in the reasonable needs of a business during the tax year.
  11. Without showing a reason for the accumulation, the minimum Accumulated Earnings Credit is ------------------- for nonservice corporations.
    Without showing a reason for the accumulation, the minimum Accumulated Earnings Credit is $250,000 for nonservice corporations.
  12. To be defined as a personal holding company, more than ----- in value of the outstanding stock must be owned during the last half of the taxable year, either directly or indirectly, by not more than five individuals.
    To be defined as a personal holding company, more than 50% in value of the outstanding stock must be owned during the last half of the taxable year, either directly or indirectly, by not more than five individuals.
  13. To be defined as a personal holding company, more than 50% in value of the outstanding stock must be owned during the last half of the taxable year, either directly or indirectly, by not more than -----------------------
    To be defined as a personal holding company, more than 50% in value of the outstanding stock must be owned during the last half of the taxable year, either directly or indirectly, by not more than five individuals.
  14. A taxpayer may elect either a ------------------------- for taxes paid to other countries or U.S. possessions on foreign-sourced income subject to U.S. tax.
    A taxpayer may elect either a credit or a deduction for taxes paid to other countries or U.S. possessions on foreign-sourced income subject to U.S. tax.
  15. Foreign tax paid in excess of the FTC limit may be carried------------------------------------------------ in chronological order. However, there is no carryover for the GILTI basket.
    Foreign tax paid in excess of the FTC limit may be carried back 1 year and forward 10 years in chronological order. However, there is no carryover for the GILTI basket.
  16. Section 11 imposes tax on the taxable income of corporations using a flat --------------.
    Section 11 imposes tax on the taxable income of corporations using a flat 21% rate.
  17. ----------------------------------- include foreign taxes on income, war profits, and excess profits.
    Qualified foreign taxes (QFTs) include foreign taxes on income, war profits, and excess profits.
  18. A single federal income tax return may be filed by two or more includible corporations that are members of an ---------------------------.
    A single federal income tax return may be filed by two or more includible corporations that are members of an affiliated group.
  19. Any two or more corporations are considered a -------------------------------------- if the stock of each is owned by the same five or fewer persons (only individuals, trusts, or estates)
    Any two or more corporations are considered a brother-sister controlled group if the stock of each is owned by the same five or fewer persons (only individuals, trusts, or estates)
  20. A corporation with uneven income flows can make its estimated tax payments by ---------------------------------.
    A corporation with uneven income flows can make its estimated tax payments by annualizing its income.
  21. No estimated tax penalty is imposed if tax liability shown on the return for the tax year is less than ------------.
    No estimated tax penalty is imposed if tax liability shown on the return for the tax year is less than $500.
  22. The term ---------------------------------- is the federal tax accounting version of financial accounting’s retained earnings.
    The term “earnings and profits” (E&P) is the federal tax accounting version of financial accounting’s retained earnings.
  23. There are two types of E&P: --------------------------------
    There are two types of E&P: current and accumulated.
  24. --------------------------- address a situation of current accumulated earnings with insufficient liquidity to distribute dividends.
    Consent dividends address a situation of current accumulated earnings with insufficient liquidity to distribute dividends.
  25. Reasonable needs of a business include only those items required to meet ----------------------------------------------------------------------------------------
    Reasonable needs of a business include only those items required to meet future needs and for which there are specific and foreseeable plans for use.
  26. The PHC tax is a ------------------------- imposed on the undistributed income of personal holding companies. The tax is designed to deter passive investors from using a C corporation to avoid higher individual rates.
    The PHC tax is a 20% penalty tax imposed on the undistributed income of personal holding companies. The tax is designed to deter passive investors from using a C corporation to avoid higher individual rates.
  27. The PHC tax is a 20% penalty tax imposed on the undistributed income of personal holding companies. The tax is designed to -----------------------------------------------------------------------------------------------------------
    The PHC tax is a 20% penalty tax imposed on the undistributed income of personal holding companies. The tax is designed to deter passive investors from using a C corporation to avoid higher individual rates.
  28. Self-assessment of PHC tax liability is required. Schedule PH is filed with Form 1120 by a PHC. There is a -----------------------------------------------------------------------------
    Self-assessment of PHC tax liability is required. Schedule PH is filed with Form 1120 by a PHC. There is a 6-year statute of limitations if the schedule is not filed.
  29. Nonexempt entities must meet two objective tests, ------------------------------ and the --------------------------, to be subject to the personal holding company (PHC) tax.
    Nonexempt entities must meet two objective tests, the stock ownership test and the nature of income test, to be subject to the personal holding company (PHC) tax.
  30. A corporation is allowed ------ days to pay a deficiency dividend after a determination of PHC tax liability is made.
    A corporation is allowed 90 days to pay a deficiency dividend after a determination of PHC tax liability is made.
  31. A personal holding company is a corporation that is more than ---------------------------------------------- any time during the last half of the year and that has 60% of its income as personal holding company income (generally passive income).
    A personal holding company is a corporation that is more than 50% owned by five or fewer shareholders any time during the last half of the year and that has 60% of its income as personal holding company income (generally passive income).
  32. A ------------------------- is treated as a dividend currently taxable to the shareholders even though no distribution was made.
    A consent dividend is treated as a dividend currently taxable to the shareholders even though no distribution was made.
  33. For a corporation to justify its accumulation of earnings, there must be ---------------------------------------------------------------------------------------- and that the corporation has specific and feasible plans for the use of the accumulation
    For a corporation to justify its accumulation of earnings, there must be evidence that the future needs of the business will require such an accumulation and that the corporation has specific and feasible plans for the use of the accumulation
  34. Personal holding company status is limited to corporations with personal holding company income of at least ------ of adjusted ordinary gross income.
    Personal holding company status is limited to corporations with personal holding company income of at least 60% of adjusted ordinary gross income.
  35. The personal holding company income test requires the company’s income for a given taxable year to be at least
    60% of adjusted ordinary gross income.
  36. The Accumulated Earnings Credit is defined as the increase in the reasonable needs of a business during the tax year. Without showing a reason for the accumulation, the minimum Accumulated Earnings Credit is ------------------- for corporations other than personal service corporations.
    The Accumulated Earnings Credit is defined as the increase in the reasonable needs of a business during the tax year. Without showing a reason for the accumulation, the minimum Accumulated Earnings Credit is $250,000 for corporations other than personal service corporations.
  37. The -----------------------------------is defined as the increase in the reasonable needs of a business during the tax year. Without showing a reason for the accumulation, the minimum ---------------------------------------- is $250,000 for corporations other than personal service corporations.
    The Accumulated Earnings Credit is defined as the increase in the reasonable needs of a business during the tax year. Without showing a reason for the accumulation, the minimum Accumulated Earnings Credit is $250,000 for corporations other than personal service corporations.
  38. On April 30, Year 2, G, a calendar-year C corporation, determined its estimated tax liability to be $12,000. It should have made estimated tax payments of
    $3,000 no later than the 15th day of the 4th, 6th, 9th, and 12th months of Year 2.
  39. A calendar-year corporation is required to pay ------ of its estimated tax on the 15th day of the 4th, 6th, 9th, and 12th months of the year.
    A calendar-year corporation is required to pay 25% of its estimated tax on the 15th day of the 4th, 6th, 9th, and 12th months of the year.
  40. A calendar-year corporation is required to pay 25% of its estimated tax on the 15th day of the--------------------------------- months of the year.
    A calendar-year corporation is required to pay 25% of its estimated tax on the 15th day of the 4th, 6th, 9th, and 12th months of the year.
Author
Joens1313
ID
354648
Card Set
reg 11 2222021a
Description
reg 11 2222021a
Updated