If the shareholders of a calendar year C corporation elect S status on Friday, March 11, 2017, the election is effective for all of 2017.

Question

Quizplus · Accepted Answer

An S corporation election is effective for the entire tax year in which it is made, as long as the election is made by the 15th day of the third month of that year (March 15 for calendar year taxpayers). In this case, the election is being made on March 11, 2017, well before the March 15 deadline, so it will be effective for the full 2017 tax year.

If the Shareholders of a Calendar Year C Corporation Elect