Earnings and Profits & How to Calculate Them

Earnings and Profits & How to Calculate Them

by | Apr 5, 2021 | Insights

You may hear your tax advisor talk about earnings and profits. Why is it important to compute earnings and profits? The answer is: this calculation allows a business to determine whether a distribution paid to shareholders would be treated as a taxable dividend, a...
Shareholder Distribution – The ABCs of Distributions

Shareholder Distribution – The ABCs of Distributions

by | Dec 24, 2020 | Insights

The following article will explain what constitutes a distribution. To learn more about the different kinds of distributions, read The Impact of Distributions on Corporations. From a tax perspective, distributions may be viewed in one of three possible ways:...
Withholding Taxes: Foreign Shareholders

Withholding Taxes: Foreign Shareholders

by | Dec 24, 2020 | Insights

A withholding tax is an amount of income that a company withholds from an employee’s paycheck or from dividends paid to a foreign shareholder. The corporation pays the money withheld to the IRS directly, instead of to the employee or shareholder. This article will be...