the internal revenue service may impose both the accumulated earnings tax (section 531) and the personal holding company tax (section 541) on a corporation in the same tax year.

True

False

Earnings accumulated for purposes of making loans to suppliers are considered to be for the reasonable needs of the business

True

False

Earnings of a corporation accumulated for working capital purposes of the corporation are considered to be a justifiable reasonable business need of the corporation and therefore, not subject. The corporation to the accumulated earnings tax (section 531)

True

False

Non-taxable stock dividends paid during the current tax year will reduced undistributed personal holding company income for purposes of the personal holding company (PHC) Tax (Section 541)

True

False

Once a corporation becomes a personal holding company (section 541). It will automatically always be a personal holding company

True

FALSE