Accumulated Earnings Tax

(redirected from Accumulated Earnings Taxes)
Also found in: Financial.

Accumulated Earnings Tax

A special tax imposed on corporations that accumulate (rather than distribute via dividends) their earnings beyond the reasonable needs of the business. The accumulated earnings tax is imposed on accumulated taxable income in addition to the corporate Income Tax.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
subsidiary can retain earnings with near-certainty of avoiding a second-level tax simply by investing the earnings in assets owned by the subsidiary (with possible constraints under the personal holding company (139) and accumulated earnings taxes (140)), a U.S.
Full browser ?