accumulated earnings tax

noun

Legal Definition of accumulated earnings tax

: a tax levied on the taxable income of a corporation that is accumulated by the corporation rather than distributed to shareholders and that is not retained for the reasonable needs of the business

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“Accumulated earnings tax.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/accumulated%20earnings%20tax. Accessed 20 Oct. 2020.

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