Bilbeaux Corporation is a calendar year corporation that starts business on January 1, 2019.Bibeaux files an election to be treated as a S corporation on April 2, 2020, when it files its tax return for 2019.Bilbeaux will be treated as an S corporation for 2019.

Question

Quizplus · Accepted Answer

In order for an S corporation election to be effective for a specific tax year, it must be filed by the 15th day of the third month of that tax year. Therefore, Bilbeaux's election filed on April 2, 2020, would only be effective for tax years beginning in 2020 and later, not for the 2019 tax year.

Bilbeaux Corporation Is a Calendar Year Corporation That Starts Business