For an S corporation to elect to use a fiscal year other than a permitted year, the fiscal year elected must have a maximum deferral period of
A)one month.
B)two months.
C)three months.
D)six months.

Question

Quizplus · Accepted Answer

An S corporation can only use a fiscal year other than a permitted year if it has a business justification and obtains permission from the IRS. The maximum deferral period for the new fiscal year must not exceed three months. Therefore, the correct answer is C.

For an S Corporation to Elect to Use a Fiscal