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

question 98

Essay

XYZ was formed as a calendar-year S corporation with Xavier, Yolinda, and Zach as equal shareholders. On September 15, 2018, 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?

---

Definitions:

Sample Statistic

A sample statistic is a numerical measure that describes a characteristic of a sample, such as the mean or standard deviation, derived from data collected from a subset of a population.

Sample

A subset of individuals, items, or data taken from a larger population for the purpose of analysis.

Average Age

The mean age of a group of individuals, calculated by adding their ages together and dividing by the number of individuals.

Random

A process or selection made without method or conscious decision, which is unpredictable and without a discernible pattern.