What is meant by the term "double taxation" of corporations?

A.

Double taxation refers to 100% of a corporation's income being taxed. Corporations are unable to take any deductions, thus corporations must pay tax on all income.

B.

Double taxation refers to the taxing of the same income twice. This type of taxation typically results from an S corporation paying tax on its taxable income and the shareholders also paying income tax on any dividends received from the S corporation.

C.

Double taxation refers to a corporation not being allowed standard deductions.

D.

Double taxation refers to the taxing of the same income twice. This type of taxation typically results from a C corporation paying tax on its taxable income and shareholders paying income tax on any dividends received from the C corporation.