![]() ![]() ![]() That the corporation is revoking its election under Sec.Income Tax Return for an S Corporation, (i.e., a corporate officer) and must provide (Regs. The statement should be signed by a person authorized to sign Form 1120S, U.S. The revocation is made by a corporation in the form of a statement filed with the IRS Service Center where the corporation properly filed its S election, Form 2553, Election by a Small Business Corporation. To voluntarily terminate its S status, a corporation may file a revocation for any of its tax years, including the first tax year for which the election is effective (Sec. Finally, shareholders may find it impossible to continue meeting the S corporation eligibility rules because of a desire, for example, to admit an ineligible shareholder (such as a corporation or a nonresident alien individual) or to issue preferred stock with differing rights to distribution or liquidation proceeds. Furthermore, the shareholders may want to revoke the S election to take advantage of the more favorable fringe benefit rules or fiscal- tax- year rules available to C corporations. Because of these changes, shareholders may want to revoke an S election. Additionally, the corporate alternative minimum tax is repealed for tax years beginning after Dec. 15) applicable to fiscal- year corporations with year ends after that date. 31, 2017, the corporate tax rate is a flat 21%, with a blended rate (Sec. For example, for tax years beginning after Dec. Circumstances may arise where more favorable results are achieved by not operating as an S corporation. ![]()
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