The U.S. Internal Revenue Service can reallocate revenues and expenses between parent corporations and their subsidiaries to more clearly reflect a proper allocation of income
In such instances it is the responsibility of the corporation to prove that the IRS has been arbitrary in its decision-making, thus establishing a "guilty until proved innocent" tax approach.
Indicate whether the statement is true or false.
Answer: TRUE
You might also like to view...
Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for
A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.
Earnings per share is the earnings per share of outstanding common stock
Indicate whether the statement is true or false
The purchase of equipment is an example of:
a. An investing activity. b. A financing activity. c. An operating activity. d. None of these are correct.
Which of the following statements is CORRECT?
A. It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship. B. Corporate shareholders are exposed to unlimited liability. C. Corporations generally face fewer regulations than sole proprietorships. D. Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation. E. Shareholders in a regular corporation (not an S corporation) pay higher taxes than owners of an otherwise identical proprietorship.