Are there issues associated with keeping the large sum of money in accumulated earnings? The corporation has a large amount of money in retained earnings. The corporations retained earnings (accumulated earnings and profits) have not been earmarked, or designated, for any future use at all. Also, now the lifestyle of B1 and his spouse has become more extravagant and opulent. The closely held corporation is located in Pennsylvania. Use legal documents (IRC, IRM, Treasury regulations, IRS publications, and published journals) to support your findings.