IDNLearn.com provides a collaborative platform for sharing and gaining knowledge. Our platform is designed to provide trustworthy and thorough answers to any questions you may have.
Sagot :
Yes, the given reason is true that The IRS is likely to permit the S election to stand because Beetroot took the proper measures to undo an unintentional termination within a reasonable amount of time.
The Beetroot, Inc. has a calendar year-end S company. Hans, a shareholder in Beetroot, leaves the United States on February 1 of this year to get married in Germany and ceases to be a resident for tax purposes in the United States. On February 14th, Hans recognizes his error and sells his Beetroot shares right away to a U.S. tax resident.
In the event that Beetroot makes the S election, then the shareholders of the corporation must be either particular people, certain trusts, or particular tax-exempt organizations. The Internal Revenue Service (IRS) does not impose the same restrictions on the number and nature of LLC members, who are often solo proprietors or small groups of professionals.
Learn more about shareholder visit: brainly.com/question/29705807
#SPJ4
Correct Question:
Assertion : Beetroot, Inc. is a calendar year-end S corporation. On February 1 of the current year, Hans, a Beetroot shareholder moves to Germany to get married and is no longer a U.S. tax resident. Hans realizes his mistake and immediately sells his shares in Beetroot to a U.S. tax resident on February 14th. Beetroot's S election
is not likely terminated.
Reason: Because Beetroot took the necessary steps to correct an inadvertent termination in a reasonable period, the IRS is likely to allow the S election to stand.
Check the reason is true or not
We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.
