Identify which of the following statements is false.
A)A C corporation short-year income tax liability must be determined on an annualized basis.
B)If the termination of an S election is considered to be inadvertent, then the election is permitted to continue in place as if the termination had never occurred.
C)If an S election is terminated and the termination is not considered to be inadvertent, a ten-tax-year waiting period is required before making a new election.
D)A corporation can obtain relief for a late S election if the IRS consents.

Question

Quizplus · Accepted Answer

The correct waiting period before making a new S election after a non-inadvertent termination is generally five tax years, not ten.

Identify Which of the Following Statements Is False