Accumulated Earnings Tax

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August 31, 2024 4 min read Definitions

Accumulated Earnings Tax (AET): Prevention of Avoiding Shareholder Taxation on Dividends

Taxes Corporate Finance Accumulated Earnings Tax Corporate Taxation Dividends Shareholder Taxation IRS Regulations

Accumulated Earnings Tax (AET) is a tax imposed on corporations that retain earnings beyond the reasonable needs of the business to prevent them from avoiding shareholder taxation on dividends.

August 31, 2024 4 min read Definitions

Revenue Act of 1913: Introduction of U.S. Accumulated Earnings Tax

History Government Regulations Revenue Act 1913 Accumulated Earnings Tax U.S. Taxation Fiscal Policy

The Revenue Act of 1913 marked a significant shift in U.S. fiscal policy by introducing the accumulated earnings tax, fundamentally altering taxation by imposing levies on certain business income.