Any unused carry back will be indexed for inflation during the carry back period. Thus, the taxpayer's combined tax burden will only be affected if the taxpayer pays little or no federal income tax over an extended period. Certain medicines and basic foods have been temporarily zero-rated for 1992. Excess credits can be refunded. Every business concern having employees is required to distribute a portion of its annual profits among all employees, regardless of its form of organization.
Special rules apply to a limited number of specific businesses.
Newly formed corporations will have a short taxable year from the date of incorporation to December 31 of that year. Similarly, existing corporations will have a short taxable year in the year in which liquidation procedures commence. The income tax system seeks to tax corporate earnings only once, at the corporate level. It is important to note that not taxing dividend distributions eliminates double taxation at the shareholder level and thus significantly reduces the overall tax burden of domestic or foreign investors' return on investment.