If a corporation's status as an S corporation is involuntarily terminated in the middle of the tax year, the corporation must file as an S corporation for the first half of the tax year and a regular corporation for the second half of the tax year.

Question

Quizplus · Accepted Answer

If an S corporation's status is involuntarily terminated, it must file as an S corporation for the portion of the tax year during which it was an S corporation and as a regular corporation for the portion of the tax year during which it was not.

If a Corporation's Status as an S Corporation Is Involuntarily