The IRS May Consent to an Early Reelection of S

question 60

Multiple Choice

The IRS may consent to an early reelection of S corporation status after a termination under which of the following?

• A)The corporation is now owned more than 10 percent by shareholders who were not owners at the time of termination.
• B)The corporation is now owned more than 60 percent by shareholders who were owners at the time of termination.
• C)The termination was not reasonably within the control of the corporation or shareholders with a substantial interest in the corporation and was not part of a planned termination by the corporation or shareholders.
• D)The corporation had only two ineligible shareholders at the termination date.
• E)None of the choices are correct.

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Definitions:

Positive Messages

Communications that convey optimistic, encouraging, and uplifting information.

Further Action

Subsequent steps or measures to be taken following the current point in a process or plan.

Claims

Assertions or statements made, often in advertising or legal contexts, about the benefits, features, or rights associated with a product, service, or agreement.

Adjustment Requests

Formal or informal requests made to modify procedures, conditions, or environments to better fit individual or group needs.