True or False.

H Company, an corporation owned by A, B, and C, voluntarily terminated its Selection and became a C corporation. One year later, A sold his one-third interest in the corporation to D. B, C, and D may re- elect S corporation status at this time, without permission from the IRS, since there has been a partial change in ownership. O True False A gift transfer of municipal bonds, the income from which is not subject to income tax, may be subject to the Federal gift tax. True False