A C corporation was formed five years ago and is a fiscal- year taxpayer with a June 30 year- end. The C corporation wants to make an S election for its tax year beginning in the current year. The election must be made by (assuming permission can be obtained to continue using the fiscal year from the IRS).

Question

Quizplus · Accepted Answer

The S corporation election must be made by the 15th day of the third month of the tax year in which the election is to be effective. For C corporations using a fiscal year, this is the 15th day of the third month of their fiscal year. Therefore, if the C corporation wants to make an S election for its tax year beginning in the current year, the election must be made by September 15 of the current year.

A C Corporation Was Formed Five Years Ago and Is