Question

Last year Drone Corporation was formed on January 1st. An S election was filed by March 15th of the same year. When the S election was filed it was missing a consent from one of the shareholders. The missing consent was filed on August 5th. Which of he following statements is correct?

A- The S election is valid for last year, if the shareholder was out of the country until August 1st.

B- The S election will be vaild beginning January 1st of the next year, if there was no reasonable cause for the late consent filing.

C- The S election is valid for last year, if the consent was late because the CPA thought that the client filed it and the client thought the CPA filed it.

D- Late consent is acceptable if there is reasonable cause for the delay and the interest of the government is not jeopardized.

E- All of the above are correct.

Answer 1

The correct answer is option D

In the given case last year drone corporation was formed on January 1st an s election was filed by by march 15th of the same year and when s election was filed it was missing a consent from one of the shareholders and that was filed on August 5th

The filing of the missed consent will be valid only if the late consent os acceptable if there is reasonable cause for the delay and the interest of the government is not jeopardized.

The valid reason to be to proved with appropriated and sufficient documentary evidences then only the delayed consent will get valid.

The delay of consent should not disturb the activities of government and policies of the government.

The intention behind the delay in consent should not deceive the government and should not oppose to the government.

By satisfying all the above conditions the delayed consent will become valid.

These are all the points regarding the consequences of filing a delayed consent.

I hope, all the above mentioned points and explanation are useful and helpful to you.

Thank you.