An S corporation can make a voluntary revocation of an S election if shareholders holding more than 25 percent of the S corporation stock (including nonvoting shares) agree.
The shareholders must hold more than 50 percent of the stock to make a voluntary revocation.

Question

Quizplus · Accepted Answer

The statement is incorrect. Shareholders holding more than 50 percent of the S corporation stock (including nonvoting shares) must agree to make a voluntary revocation of an S election.

An S Corporation Can Make a Voluntary Revocation of an S