XYZ Was Formed as a Calendar-Year S Corporation with Xavier,Yolinda,and

question 98

Short Answer

XYZ was formed as a calendar-year S corporation with Xavier,Yolinda,and Zach as equal shareholders.On September 15,2017,XYZ's S election was terminated after Zach sold his XYZ shares (one-third of all shares)to his solely owned C Corporation Zach,Inc.Absent permission from the IRS,what is the earliest date XYZ may again elect to be taxed as an S corporation?

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Definitions:

Employee Time Ticket

A document that records the amount of time an employee spends on various tasks, used for payroll and accounting purposes.

Cost Driver

A factor that influences or contributes to the expense of certain business operations.

Direct Costs

Costs that can be directly attributed to the production of a specific good or service, such as raw materials and direct labor.

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.