Bobby T (75% owner) would like to terminate the S corporation status for DJ, Inc. Dallas (5% owner) does not want to terminate the S corporation status. Bobby T can terminate the S status for DJ, Inc. without Dallas' consent.

Question

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According to IRS regulations, a shareholder holding 50% or more of the voting power of an S corporation can unilaterally make the decision to terminate the S corporation status without the consent of other shareholders. As Bobby T holds 75% ownership, he can terminate the S corporation status without Dallas' consent.

Bobby T (75% Owner) Would Like to Terminate the S