Accumulated Earnings Credit

Controlled Group
A Controlled Group is defined as two or more corporations whose stock is substantially held by five or fewer persons. Included in this category are brother-sister groups, parent-subsidiary groups, combined groups, and certain insurance companies. These corporations are subject to special rules for computing income tax, the alternative minimum tax (AMT) exemption, the accumulated earnings credit, and the environmental tax exemption.

Accounting Terms Lexicon

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