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our modern Internal Revenue Code anticipates two kinds of taxpayers individuals in other words natural persons the men and women making up the majority of the United States tax base who are subjected to federal income tax under the Internal Revenue Code section number one and corporations who are artificially created bodies corporates formed by leave of and under the rules promulgated by individual states they're subject to federal income tax under Internal Revenue Code section 11 everything other than section 1 individuals and section 11 corporations including partnerships limited liability companies S corporations regulated investment companies trusts and estates and so on are in essence variations of one of these two basic kinds of taxpayers corporations as artificial forms of taxpayers have equally artificial and not always intuitive sets of rules governing their taxation generally they can be formed tax-free which is to say that when individuals form them that is not necessarily...