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) Taxable income of a personal service corporation is taxed at a flat rate of 21%.
C) A tax return must be filed whether or not the corporation has taxable income.
D) The alternative minimum tax does not apply.
E) None of these.

Question

Quizplus · Accepted Answer

The incorrect statement is that NOLs (Net Operating Losses) are subject to a 2-year carryback and 20-year carryforward period. For tax years beginning after 2017, the Tax Cuts and Jobs Act eliminated the 2-year carryback option for most NOLs and allowed an indefinite carryforward period, subject to a limitation of 80% of taxable income for losses arising in tax years beginning after December 31, 2017.

Which of the Following Statements Is Incorrect Regarding the Taxation