Which of the following conditions will not cause an S election to be terminated?

Name: Which of the following conditions will not cause an S election to be terminated?
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Question

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While failing to file a timely tax return can result in penalties, it will not cause an S election to be terminated. The other three conditions (exceeding the 100-shareholder limit, creating a second class of stock with a dividend preference, and selecting an improper tax year) can all result in termination of an S election.

Which of the Following Conditions Will Not Cause an S