Does the timing of a distribution matter as to whether it is taxed as a dividend or treated as a return of capital? explain. a.yes. if the corporation has a current e& p deficit and positive accumulated e& p, then the amount of current e& p deficit accrued on the distribution date reduces the accumulated e& p, so the remainder is all that's allowed as a dividend. b.yes. if the corporation makes more than one distribution during the year, and there is insufficient e& p for all distributions to be treated as dividends, then the current e& p is allocated ratable to all distributions, but the accumulated e& p is allocated on a fifo basis to each distribution. c.no. if the corporation makes multiple distributions, and the corporation's total e& p does not cover the full distribution, dividend treatment will be disallowed. d.both a and b.