Common use of Status of Corporation Clause in Contracts

Status of Corporation. The status of the corporation after the terminating event or invalid election and before the determination of inadvertence is deter- mined by the Commissioner. Inad- vertent termination or inadvertent in- valid election relief may be granted retroactively for all years for which the terminating event or circumstance giving rise to invalidity is effective, in which case the corporation is treated as if its election was valid or had not terminated. Alternatively, relief may be granted only for the period in which the corporation became eligible for subchapter S or QSub treatment, in which case the corporation is treated as a C corporation or, in the case of a QSub with an inadvertently terminated or invalid election, as a separate C cor- poration, during the period for which the corporation was not eligible for its intended status.