The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.

Name: The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.
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The termination of an S election generally takes effect on the first day of the taxable year following the year in which the corporation ceases to meet the eligibility criteria, unless the termination is specified to take effect on a certain date or due to a specific event.

The Termination of an S Election Occurs on the Day