An S Corporation May Lose Its S Tax Status

question 41

Multiple Choice

An S corporation may lose its S tax status:

• A)Only at the option of the IRS.
• B)If the corporation has a passive loss during the year.
• C)If any one of the shareholders dies and the estate owns the stock.
• D)If any one of the shareholders transfers some of the stock to a nonqualified trust.
• E)None of the above terminates an S election.

Recognize the impact of mental incompetence, duress, and fraud on the enforceability of negotiable instruments.

Grasp the concept of presentment and its requirements for negotiable instruments.

Distinguish between various types of alterations and their legal implications.

Understand the significance of good faith and consideration in transactions involving negotiable instruments.

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Definitions:

Compliance

The act of adhering to established guidelines, standards, or laws.

Routine Request

A standardized or commonly made inquiry or appeal for information, services, or action in the course of regular operations or transactions.

Complex Requests

Inquiries or demands that involve multiple steps, conditions, or elements, often requiring careful consideration and planning to execute.

Inconvenience

The state of being caused trouble or difficulty, often resulting in disruption of plans or activities.