randomep Posted May 18, 2016 Share Posted May 18, 2016 hi all, I have heard that the IRS frowns on corporations that keeps too much retained earnings. For a small (S?) corporation a reasonable amount is $150k after which the government will charge a tax on retained earnings. What about public corporations? I am particularly concerned about some of my microcaps which have zero debt and are piling up retained earnings. I wonder if they are forced eventually to distribute it due to the IRS rule. Can anyone conform or shed light on either case? thanks Link to comment Share on other sites More sharing options...
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