Accumulated Earnings Tax
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 corporateincome tax.
"Accumulated Earnings Tax." West's Encyclopedia of American Law. . Encyclopedia.com. (September 26, 2018). http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/accumulated-earnings-tax
"Accumulated Earnings Tax." West's Encyclopedia of American Law. . Retrieved September 26, 2018 from Encyclopedia.com: http://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/accumulated-earnings-tax