1120-US: Additional five-percent tax on the controlled group (FAQ)

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Question

Why is UltraTax/1120 calculating an additional five-percent tax on the controlled group?

Answer

The five-percent additional tax is assessed when the total taxable income of the controlled group exceeds $100,000. The additional tax is equal to the lesser of: (a) five percent of the controlled group's taxable income exceeding $100,000, or (b) $11,750.

Related topic: 1120-US: Controlled group FAQs

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