Identify which of the following statements is false.
A)The election form can be signed by a person authorized to sign the S corporation tax return.
B)An S election is filed by the corporation by using Form 2553 on or before the due date (without regard to any extensions)for the corporate tax return for the tax year in question.
C)An S corporation must file a tax return for any year in which the S corporation is in existence.
D)The IRS can grant extensions of time of filing shareholder consents to the S election.

Question

Quizplus · Accepted Answer

The statement in B is false because an S election (Form 2553) can actually be filed at any time during the tax year preceding the tax year it is to take effect, or at any time during the tax year it is to take effect by the 15th day of the 3rd month of the tax year. The statement as given suggests a more restrictive timeframe that does not account for these options.

Identify Which of the Following Statements Is False