The election for T, a calendar year S corporation, is terminated on May 1, 2011.Select the best answer.

Question

Quizplus · Accepted Answer

Since the election for T is terminated on May 1, 2011, the corporation will be treated as a C corporation for the entire year. Therefore, Form 1120S must be filed for the first four months (when T was still an S corporation) and Form 1120 must be filed for the remaining eight months (when T is treated as a C corporation). Option A is incorrect because Form 1120 must be filed instead of Form 1120S. Option B is incorrect because Form 1120S cannot be filed for the entire year due to the termination of the S election. Option D is incorrect because there is no such thing as a special Form 1120CS.

The Election for T, a Calendar Year S Corporation, Is