Election after termination. (a) In general. Absent the Commis- sioner’s consent, an S corporation whose election has terminated (or a successor corporation) may not make a new election under section 1362(a) for five taxable years as described in sec- tion 1362(g). However, the Commis- sioner may permit the corporation to make a new election before the 5-year period expires. The corporation has the burden of establishing that under the relevant facts and circumstances, the Commissioner should consent to a new election. The fact that more than 50 percent of the stock in the corporation is owned by persons who did not own any stock in the corporation on the date of the termination tends to estab- lish that consent should be granted. In the absence of this fact, consent ordi- narily is denied unless the corporation shows that the event causing termi- nation was not reasonably within the control of the corporation or share- holders having a substantial interest in the corporation and was not part of a plan on the part of the corporation or of such shareholders to terminate the election.
Appears in 5 contracts
Samples: Supplemental Contract, Publishing Agreement, Supplemental Contract
Election after termination. (a) In general. Absent the Commis- sioner’s consent, an S corporation whose election has terminated (or a successor corporation) may not make a new election under section 1362(a) for five taxable years as described in sec- tion 1362(g). However, the Commis- sioner may permit the corporation to make a new election before the 5-year period expires. The corporation has the burden of establishing that under the relevant facts and circumstances, the Commissioner should consent to a new election. The fact that more than 50 percent of the stock in the corporation is owned by persons who did not own any stock in the corporation on the date of the termination tends to estab- lish that consent should be granted. In the absence of this fact, consent ordi- narily is denied unless the corporation shows that the event causing termi- nation was not reasonably within the control of the corporation or share- holders having a substantial interest in the corporation and was not part of a plan on the part of the corporation or of such shareholders to terminate the election.
Appears in 4 contracts
Samples: Publishing Agreement, Boxing Agreement, Publishing Agreement