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:

Hydrogen Bond

A fragile connection between two molecules caused by the electrostatic pull between a proton in one molecule and an atom with a strong electron attraction in the other.

Compound

A chemical entity that results from the combination of atoms from two or more different elements in a specific proportion and structure.

Molecules

Groups of two or more atoms held together by chemical bonds, constituting the smallest identifiable unit of a compound.

Intermolecular Forces

Attractive forces between molecules that affect their physical properties such as boiling point, melting point, and solubility.