Question

a PSC has made a section 444 election to obtain November 30 year end. Which of...

a PSC has made a section 444 election to obtain November 30 year end. Which of the following rules only apply to a PSC in this situation?

a) there must be a business purpose for this year end.

b) there are minimum distribution requirements.

c) the required payment must be made

d) it can carry back an NOL.

Business   Accounting   
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Answer #1

b) there are minimum distribution requirements.

A permitted tax year is any of the following:

- A Calaendar Year

- A tax year elected under section 444

- A 52-53-week tax year ending with reference to the calendar year or a tax year elected under section 444

- Any other tax year for which the corporation establishes a business purpose

Section 444

A partnership or an S corporation that makes a section 444 election must make certain required payments and a PSC must make certain distributions.

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