Bobby T (75 percent owner)would like to terminate the S corporation status of DJ, Inc., but Dallas (5 percent owner)does not want to terminate S corporation status.Bobby T can terminate the S corporation status for DJ, Inc., without Dallas's consent.

Question

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According to the IRS regulations, shareholders owning more than 50% of the voting power can make the decision to terminate S corporation status without the consent of other shareholders. As Bobby T owns 75% of the shares, he can terminate the S corporation status even if Dallas does not want to.

Bobby T (75 Percent Owner)would Like to Terminate the S