If Annie and Andy (each a 30% shareholder) file a revocation on March 18, 2014 to terminate their S corporation's S election, what is the effective date of the S corporation termination (assuming they do not specify one)?

Question

Quizplus · Accepted Answer

The effective date of the termination of an S corporation's election is the first day of the tax year following the year in which the revocation is filed, unless a different date is specified. Since the revocation was filed in 2014 and no specific date was provided, the termination would be effective January 1, 2015.

If Annie and Andy (Each a 30% Shareholder) File a Revocation