Question

Thanks for your HELP : )

1. Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father?

A) Sell additional stock to other family members.

B) Make a cash distribution within 2 1/2 months of the end of the tax year.

C) Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed.

D) Liquidate the corporation.

2. Identify which of the following statements is false.

A) A corporation files a Schedule AE to report the amount of its accumulated earnings tax liability for the tax year.

B) A corporation that is subject to the accumulated earnings tax may also be subject to interest and underpayment penalties on the amount of the unpaid liability.

C) A corporation files a Schedule PH to report its PHC tax for the tax year.

D) The corporate AMT liability is reported on Form 4626.

Answer 1

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