26 U.S. Code § 1354 - Alternative tax election; revocation; termination
(b) Time and manner; years for which effective
An election under this subchapter—
(2) shall be effective for the taxable year for which made and all succeeding taxable years until terminated under subsection (d).
Such election may be effective for any taxable year only if made on or before the due date (including extensions) for filing the corporation’s return for such taxable year.
(c) Consistent elections by members of controlled groups
An election under subsection (a) by a member of a controlled group shall apply to all qualifying vessel operators that are members of such group.
(1) By revocation
(B) When effective
Except as provided in subparagraph (C)—
(i) a revocation made during the taxable year and on or before the 15th day of the 3d month thereof shall be effective on the 1st day of such taxable year, and
(2) By person ceasing to be qualifying vessel operator
(A) In general
An election under subsection (a) shall be terminated whenever (at any time on or after the 1st day of the 1st taxable year for which the corporation is an electing corporation) such corporation ceases to be a qualifying vessel operator.
(B) When effective
Any termination under this paragraph shall be effective on and after the date of cessation.
(e) Election after termination
If a qualifying vessel operator has made an election under subsection (a) and if such election has been terminated under subsection (d), such operator (and any successor operator) shall not be eligible to make an election under subsection (a) for any taxable year before its 5th taxable year which begins after the 1st taxable year for which such termination is effective, unless the Secretary consents to such election.
Source(Added Pub. L. 108–357, title II, § 248(a),Oct. 22, 2004, 118 Stat. 1451; amended Pub. L. 109–135, title IV, § 403(g)(4),Dec. 21, 2005, 119 Stat. 2624.)
2005—Subsec. (b). Pub. L. 109–135inserted “on or” after “only if made” in concluding provisions.
Effective Date of 2005 Amendment