Which of the following tax years may an S corporation use for its current taxable year (assuming no business purpose exists for another year and assuming an election is not made under Sec. 444)?

Which of the following tax years may an S corporation use for its current taxable year (assuming no business purpose exists for another year and assuming an election is not made under Sec. 444)?


A. A calendar year.

B. A year ending in the last quarter of the calendar year.

C. The same year as the majority of its shareholders.

D. Any year it has already used before.


Answer: A. A calendar year.


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