Asked by Belinda Riojas on Jun 24, 2024
Verified
Under the Internal Revenue Code, corporations are required to pay federal income taxes.
Internal Revenue Code
The comprehensive set of tax laws in the United States, governed by the Internal Revenue Service (IRS), that dictates federal tax obligations.
Federal Income Taxes
Taxes imposed by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
Corporations
Legal entities that are separate and distinct from their owners, with the ability to own assets, incur liabilities, and sell stock.
- Explain the tax implications and disadvantages of the corporate structure.
Verified Answer
FV
flower vagueJun 30, 2024
Final Answer :
True
Explanation :
This is true. Corporations are considered separate legal entities from their owners and are therefore taxed separately. They are required to pay federal income taxes on their profits.
Learning Objectives
- Explain the tax implications and disadvantages of the corporate structure.