Which of the following statements regarding organizational form is incorrect? A. The S corporation is the standard (or defauli) corporation under IRS rules. a. C corporations are separately taxable entities. They file a corporate tax retum (Form 1120) and pay taxes at the corporate level. They also face the possiblity of double taxation if corporate income is distributed to business owners as dividends, which are considered personal taxable income. Corporate income tax is paid first at the corporate level and again at the individual level on dividends. 6. 3 corporations: 3 corps are pass through taxation enties. They fle an informational federal retum (Form 1120s), but no income tax is paid at the corporate level. The profitalosses of the business are instead "passed-through" to the business and reported on the owners' personal tax roturns. Any tax due is paid at the individual lovel by the ownen. D. With both C corporations and S corporations, personal income tax ls due both on any salary drawn from the corporation and from any dividends received from the corporation. L. Corporations (C corps and S corps) are separate legal entties created by a state filing and offer limited liability protection, so shareholders (owners) are typicaly not personally responsible for business debts and liabilifes. This is true whether t is taxed as a C corporation or an S corporation