An S Election Made Before Becoming a Corporation Is Valid

question 35

True/False

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

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Definitions:

Prerogative Writs

Special orders issued by a higher court to lower courts or governmental entities, directing the performance of specific acts.

Duty

A legal or moral obligation to act or refrain from acting in a certain manner.

Mediation

A dispute resolution process involving a neutral third party who helps the conflicting parties reach a voluntary, mutually acceptable agreement.

Arbitration

A method of dispute resolution where a neutral third party, called an arbitrator, makes a binding decision to settle a dispute.