For S Corporations with Earnings and Profits from Prior C

question 91

True/False

For S corporations with earnings and profits from prior C corporation years, the taxation of distributions to the shareholder is very similar to the rules for partnerships.

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Definitions:

Overdraft

An amount beyond what is currently in the account.

Bank Account

A financial account maintained by a bank or other financial institution for the deposit and withdrawal of money by the account holder.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Writing A Check

The act of completing a check form to make a payment from a checking account to a person or entity.