Common use of Time of making election Clause in Contracts

Time of making election. In general. The election described in para- graph (a)(2)(i) of this section may be made by a small business corporation at any time during the taxable year that immediately precedes the taxable year for which the election is to be ef- fective, or during the taxable year for which the election is to be effective provided that the election is made be- fore the 16th day of the third month of the year. If a corporation makes an election for a taxable year, and the election meets all the requirements of this section but is made during the pe- riod beginning after the 15th day of the third month of the taxable year, the election is treated as being made for the following taxable year provided that the corporation meets all the re- quirements of section 1361(b) at the time the election is made. For taxable years of 21⁄2 months or less, an election made before the 16th day of the third month after the first day of the taxable year is treated as made during that year.