Dan is the partial owner of an S corporation that currently has 100 shareholders. In March of the current year, Dan sold some of his S corporation stock to each of his two adult children. In August, Dan redeemed the stock he sold because he is in the midst of a divorce and was fearful of the consequences associated with giving voting rights for his business to his children. Dan informs you, his tax consultant, of the stock sale and subsequent redemption. You explain to Dan that by selling the stock he created 102 shareholders between the months of March and August and that the S election had been terminated on the day preceding the date on which the corporation first had more than 100 shareholders. Dan tells you that he sees no reason to inform the IRS of the termination because he bought back the stock within the same tax year, and the IRS probably would not discover the event. What are your responsibilities as a CPA under the SSTS rules as mandated by the AICPA concerning the S election termination? (See the Statements on Standards for Tax Services in Appendix E for a discussion of these issues.) What advice can you offer Dan concerning reinstatement of the S election under the rules for inadvertent terminations?