Final answer:
After involuntary termination, an S corporation typically cannot make a new S election for five years, but exceptions exist. Caleb would usually have to wait until February 2020, yet he might qualify for a waiver of the waiting period under certain conditions. It is advisable to consult with a tax professional for guidance on applying for a waiver and evaluating eligibility.
Step-by-step explanation:
S Corporation Re-election After Involuntary Termination
Caleb, as per your query regarding the possibility of making a new S election after your S corporation had an involuntary termination, there are specific IRS rules governing this situation. Typically, if an S corporation's status is terminated, it cannot make a new S election for a period of five years without the approval of the IRS. However, there are exceptions to this rule, which may be applicable depending on the circumstances leading to the termination.
Since the involuntary termination occurred in February 2015, under normal circumstances, you would have to wait until February 2020 to make a new S election. Nevertheless, if there were mitigating factors, you might be eligible to apply for a waiver of the five-year waiting period. This waiver is granted at the discretion of the IRS and requires a reasonable explanation for the involuntary termination and evidence that the underlying causes have been remedied.
Additionally, if the termination was due to a failure to meet the eligibility criteria but now they are met, you could also potentially qualify for earlier re-election. I would suggest consulting with a tax professional to evaluate your specific situation, including the reason for the involuntary termination, and to assist you with the process of applying for a waiver if you choose to pursue a new S election before the five-year period elapses.