If an S Corporation Inadvertently Terminates Its Election, the IRS

question 34

Multiple Choice

If an S corporation inadvertently terminates its election, the IRS

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

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Definitions:

Individuation

A condition of psychological health resulting from the integration of all conscious and unconscious facets of the personality.

Psychic Energy

A concept in psychology referring to the energy within the psyche, responsible for thought, feeling, and behavior.

Balance

A state of equilibrium where different elements are in equal or correct proportions to maintain stability.

Collective Conscious

A set of shared beliefs, ideas, attitudes, and knowledge that is common to a social group or society.