If a corporation's status as an S corporation is involuntarily terminated in the middle of the tax year, the corporation must file an S corporation tax return for the first half of the tax year and a regular corporation tax return for the second half of the tax year.

Question

Quizplus · Accepted Answer

This is true. If the S corporation status is terminated during the tax year, the corporation must file a Form 1120S for the period it was an S corporation and a Form 1120 for the period it was a C corporation.

If a Corporation's Status as an S Corporation Is Involuntarily