When a Sec. 444 fiscal- year election is made, the S corporation makes required payments to the IRS in order to continue to use the fiscal year as its tax year. Which of the following statements about the tax year is correct?
A) The Sec. 444 payment is allocated ratably to each shareholder and claimed as a tax payment on their own tax return(s) .
B) The Sec. 444 payments are refundable if the S election is terminated.
C) The Sec. 444 payment is deductible by the S corporation as an income tax.
D) The Sec. 444 payments must be made quarterly on the same dates that the S corporation's estimated tax payments are otherwise due.
Correct Answer:
Verified
Q41: Boxer Corporation, a C corporation, elects on
Q46: Bellows Corporation, a calendar-year taxpayer, has been
Q56: Connie's Restaurant has been an S
Q57: Identify which of the following statements is
Q58: For an S corporation to elect to
Q60: Shanghai Corporation was organized and elected S
Q62: S shareholders cannot increase the basis of
Q62: Cactus Corporation, an S Corporation, had accumulated
Q64: Which one of the following special loss
Q65: Troy owns 50% of Dot.Com, an e-commerce
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents