Identify which of the following statements is true.
A)All of the shareholders of an S corporation must consent to a revocation of the S election.
B)A revocation of an S corporation election can be retrospective to any date.
C)An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E&P.
D)All of the above are true.

Question

Quizplus · Accepted Answer

A) is false because only a majority of the shareholders need to consent to the revocation. B) is false because a revocation can only be prospective, not retrospective. C) is true because if the S corporation does not have Subchapter C E&P, then excess passive income will not terminate the S election.

Identify Which of the Following Statements Is True