Identify which of the following statements is true.
A)A corporation that is a member of an affiliated group filing a consolidated tax return may be allowed a tax year which is different from the group's parent.
B)An S corporation must generally use a calendar year.
C)A corporation's first year must cover a twelve-month period.
D)All of the above are false.

Question

Quizplus · Accepted Answer

An S corporation must generally use a calendar year for tax purposes. The other statements are false. A corporation that is a member of an affiliated group filing a consolidated tax return must use the same tax year as the group's parent. Additionally, a corporation's first year may be less than or more than twelve months depending on the circumstances.

Identify Which of the Following Statements Is True