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  • Dec 11, 2006, 07:24 PM
    dennis8
    Double Taxation
    How does double taxation of corporate income occur.
  • Dec 11, 2006, 07:38 PM
    AtlantaTaxExpert
    It only occurs with C Corporaions.

    The corporation itself gets taxed on its annual profits. Then the shareholders gets taxed on any dividends that are paid by the corporation, even though that money was already taxed once.

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