Explain the advantages of a deficiency dividend What requirements must a PHC and its shareholders meet to use a deficiency dividend to reduce or eliminate the PHC tax liability Can a deficiency dividend eliminate interest and penalties, in addition to the PHC tax liability ...

A deficiency dividend substitutes an income tax payment at the shareholder level for the pers ...

Explain the advantages of a deficiency dividend. What requirements must a PHC and its shareholders meet to

Question:

Explain the advantages of a deficiency What requirements must a PHC and its shareholders meet to use a deficiency to reduce or eliminate the PHC tax liability? Can a deficiency eliminate interest and penalties, in addition to the PHC tax liability?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...