AFTER TERMINATIN OR VOLUNTARILY REVOKING S CORPORATION STATU

AFTER TERMINATIN OR VOLUNTARILY REVOKING S CORPORATION STATUS, A CORPORATION MAY ELECT IT AGAIN, BUT IT GENERALLY MUST WAIT UNTIL THE BEGINNING OF THE 3 RD TAX YEAR AFTER THE TAX YEAR IN WHICH IT TERMINATED THE ELECTION.

MULTIPLE CHOICE

1. True

2. False

Solution

ANSWER: FALSE

The corporation must wait until the beginning of the fifth year to elect S corporation status again.