When referring to an S corporation\'s post-termination transition period, the S

Question

When referring to an S corporation's post-termination transition period, the S corporation can distribute accumulated adjustments account tax-free to the shareholders 120 days after a determination occurs. A determination is defined as meaning all the following except:

A. a closing agreement that is signed by the taxpayer and IRS after an audit. B. a corporate officer determining that the corporation no longer qualifies as an S corporation. C. a court decision that becomes final. D. an agreement reached with the IRS.

Explanation / Answer

Answer : D: an agreement is reached with the IRS

Explanation : Determination can be only defined when a CLOSING agreement is a made, or a decesion by a court becomes final or a coportarte officer (secretary) disposes the claims (So - A,B and C are definitions)

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