Question

Which of the following statements is incorrect regarding the taxation of C corporations for tax years beginning after 2017?

a. NOLs are subject to a 2 year carryback and 20 year carryforward period.
b. The alternative minimum tax does not apply.
c. A tax return must be filed whether or not the corporation has taxable income.
d. Taxable income of a personal service corporation is taxed at a flat rate of 21%.
e. None of these choices are correct.

Answer 1

The correct answer is b. The alternative minimum tax does not apply to C corporations for tax years beginning after 2017.

Step-by-step explanation:

The correct answer is b. The alternative minimum tax does not apply to C corporations for tax years beginning after 2017.

The alternative minimum tax (AMT) is a separate tax system designed to ensure that taxpayers with high incomes and significant deductions pay a minimum amount of tax. The AMT does not apply to C corporations as it applies only to individuals and certain other entities such as trusts and estates.

Therefore, the statement in option b is incorrect.