If Annie and Andy (each a 30% shareholder in an S corporation) file a revocation on March 18, 2016 to terminate their S corporation's S election, what is the effective date of the S corporation termination (assuming they do not specify one)?
A) January 1, 2016.
B) March 18, 2016.
C) January 1, 2017.
D)March 16, 2017.
E)None of these

Question

Quizplus · Accepted Answer

The revocation of an S corporation election filed after March 15 will be effective on the first day of the following tax year, which is January 1, 2017, in this case.

If Annie and Andy (Each a 30% Shareholder in an S