Which of these can lead to an inadvertent termination of an S corporation a failure to...
Which of these can lead to an inadvertent termination of an S corporation
a failure to file Form 1120S
failure to file Form 2553
failure to maintain status as a small business corporation
revoking the S corporation election
Homework Answers
Answer
An S corporation election may be terminated involuntarily if the entity ceases to qualify as a small business corporation or its passive income exceeds the passive income limitation.
Correct answer is failure to maintain status as a small business corporation.
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Which of these can lead to an inadvertent termination of an S
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