If an S Corporation Inadvertently Terminates Its Election, the IRS

question 33

Multiple Choice

If an S corporation inadvertently terminates its election, the IRS

• A)may permit the corporation to report as an S corporation even for the period that includes the termination date.
• B)will not permit the corporation to restore its S election until the completion of a five-year waiting period.
• C)will permit restoration of the S election only if the event causing the termination was not within the control of the corporation.
• D)will permit restoration of the S election if a majority of the shareholders consent to the reinstatement.

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Definitions:

Throat Culture

A diagnostic test that involves swabbing the throat to identify the presence of bacteria or viruses causing infection.

Withdrawing Medication

The process of stopping or reducing a medication under the guidance of a healthcare provider.

Alcohol Wipe

A small piece of material saturated with alcohol used for disinfection of surfaces or skin before medical procedures or injections.

IM Injection

A method of delivering medication directly into the muscles, where it is quickly absorbed into the bloodstream.