If Annie and Andy (each a 30percent shareholder in a calendar-year S corporation)file a revocation statement on March 20, 2020, to terminate their S corporation's S election, what is the effective date of the S corporation termination (assuming they do not specify one)?
A)January 1, 2020
B)March 18, 2020
C)January 1, 2021
D)March 16, 2021
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The revocation of an S corporation election filed after March 15 will be effective on the first day of the following tax year, which is January 1, 2021, in this case.

If Annie and Andy (Each a 30percent Shareholder in a Calendar-Year