Question

If a corporation status as an S corporation is involuntary terminated on the middle of the tax year the corporation must file an S corporation tax return for the first half of the year and a regular Corporation tax return for the second half of the tax year

true or false

Answer 1

True

Reason;-

As per 26 U.S. Code § 1362, it will be treated as a short year. After partition, second half will be treated as a regular corporation.

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