Which of the Following,if Any,correctly Characterize the Check-The-Box Regulations

question 132

Multiple Choice

Which of the following,if any,correctly characterize the check-the-box Regulations?

• A) A one-owner business is a sole proprietorship if default (no election is made) occurs.
• B) A one-owner business cannot elect to be taxed as a corporation.
• C) If default (no election is made) occurs, a limited liability company is taxed as a corporation.
• D) The check-the-box Regulations can apply to entities that are already incorporated under state law.
• E) None of the above.

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Definitions:

Economic Benefit

The advantage or gain received from resources or actions, typically measured in terms of monetary value.

Exempt

Income, property, or persons not subject to taxation under certain conditions or qualifications.

Itemized Deduction

Itemized Deduction involves listing individual tax deductions for which a taxpayer qualifies, as opposed to taking a standard deduction, to reduce taxable income.

Tax Refund

The return of excess taxes paid to a taxpayer by the government, typically after the annual income tax filing.