In regard to choosing a tax year for a business owned by individuals, which form of business provides the greater number of options in regard to the tax year?
A) A C corporation formed by medical doctors to conduct their practice.
B) A C corporation that is in the retail grocery business.
C) A real estate partnership.
D) An S corporation engaged in manufacturing.
E) All of the above have the same options.

Question

Quizplus · Accepted Answer

A C corporation, such as one in the retail grocery business, generally has more flexibility in choosing its tax year compared to other business forms like partnerships or S corporations, which are typically required to use the calendar year unless they meet specific exceptions.

In Regard to Choosing a Tax Year for a Business