Tango Corporation, a calendar year taxpayer, has been an S corporation for several years. Tangos business activities

Question:

Tango Corporation, a calendar year taxpayer, has been an S corporation for several years. Tango’s business activities have become very profitable in recent years. On June 16, 2017, its sole shareholder desires to revoke the S election.

a. How does Tango revoke its S election? When does the revocation take effect?

b. Assume Tango files a prospective revocation effective July 1, 2017. What tax returns are required of Tango for 2017? For 2018? When are these returns due?

c. If the corporation makes a new S election after the revocation, when does it take effect?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...