Assume a Corporation's Status as an S Corporation Is Revoked

question 48

Multiple Choice

Assume a corporation's status as an S corporation is revoked or terminated. How many years must the corporation wait before making a new S corporation election, in absence of IRS consent to an earlier election?

• A)1
• B)3
• C)5
• D)7
• E)A new election is not permitted.

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Definitions:

Compounded Monthly

This refers to the interest calculation method where interest is added to the principal balance monthly, causing the amount of interest to grow each month based on the new balance.

Mortgage

A loan secured by real property, typically real estate, that the borrower is obliged to pay back with a predetermined set of payments.

Compounded Monthly

Describes a situation where interest is added to the principal balance of a loan or deposit on a monthly basis, increasing the amount of future interest.

Compounded Monthly

An interest calculation method where the interest earned each month is added to the principal, becoming the base for calculating future interest.