S Corporations Without Earnings and Profits from Prior C Corporation

question 26

True/False

S corporations without earnings and profits from prior C corporation years are not subject to the excess net passive income tax.

---

Definitions:

Statutorily Enforceable

Refers to rights or obligations that are created, recognized, and enforced through specific statutes or laws enacted by a legislative body.

Past-Due

Referring to a payment or obligation that has not been met by its deadline.

Breach of Contract

The failure to perform as specified in a legally binding contract, which can lead to legal actions and damages.

Disputed Claim

A contested assertion of a right or demand that is subject to disagreement between parties.