IRS Releases Corporate Income Tax Details In US

by Leroy Baker, Tax-News.com, Washington

24 October 2001

The IRS has released details of its Summer 2001 issue of the Statistics of Income Bulletin providing statistical information on company income tax returns and tax data on foreign-controlled domestic corporations (FCDCs).

According to the Bulletin, company pre-tax profits declined for the first time in six years decreasing by 8.4 per cent to US$838.2 billion in 1998. Positive net income for that year was down by 2.4 per cent and the tax base decreased by 3 per cent to $663.4 billion which led to a drop in corporate income tax to $234.1 billion which is $8 billion less than in 1997.

Profits reported by FCDCs for 1998 showed a decline of around 25 per cent compared to the year before and the IRS states that the total US income tax that these companies paid dropped by 7.4 per cent to $18.3 billion from 1997.

The Bulletin also contained tax information regarding the returns of sole proprietorships, the largest class of private foundations and trends in the capital gains and losses of individuals.

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