If the shareholders of an S corporation voluntarily revoke the corporation's S corporation status in the sixth month of the tax year and the revocation does not specify a prospective revocation date, the corporation is a regular corporation for that tax year.

Question

Quizplus · Accepted Answer

The corporation will be treated as an S corporation for the part of the tax year before the revocation and as a C corporation for the remainder of the year. The change does not retroactively apply to the entire tax year.

If the Shareholders of an S Corporation Voluntarily Revoke the Corporation's