If an S Corporation Inadvertently Terminates Its Election, the IRS

question 33

Multiple Choice

If an S corporation inadvertently terminates its election, the IRS

• A)may permit the corporation to report as an S corporation even for the period that includes the termination date.
• B)will not permit the corporation to restore its S election until the completion of a five-year waiting period.
• C)will permit restoration of the S election only if the event causing the termination was not within the control of the corporation.
• D)will permit restoration of the S election if a majority of the shareholders consent to the reinstatement.

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Definitions:

Employment Background

The history of a person's work experience, education, and other qualifications relevant to their job suitability.

Career Change

A career change involves shifting from one job or profession to another, often requiring new skills, training, or education.

Lengthy Unemployment

An extended period during which an individual is without a job and actively seeking work.

Organizational Plan

A structured outline or strategy designed to achieve specific goals within an organization.