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?

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Definitions:

Just-In-Time Delivery

A supply chain management strategy that aligns raw-material orders from suppliers directly with production schedules.

Globalization

The method through which companies or different entities gain international impact or commence activities globally.

Type A

refers to a personality type characterized by high levels of competitiveness, self-drive, and a sense of urgency.

Sales Presentation

A detailed pitch or demonstration given to potential customers with the aim of promoting and selling a product or service.