179k views
0 votes
True or false: S corporations are generally required to use a calendar year-end.

User Moliad
by
7.7k points

1 Answer

3 votes

Final answer:

False. S corporations are not generally required to use a calendar year-end.

Step-by-step explanation:

The statement true: S corporations are generally required to use a calendar year-end is false.

An S corporation is a type of business entity that elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. While most S corporations do use a calendar year-end as their fiscal year, it is not a requirement. S corporations have the flexibility to choose a fiscal year-end that aligns with their business operations.

For example, if an S corporation conducts its business on a fiscal year basis that does not coincide with the calendar year, it can adopt a fiscal year-end that ends on any other date within the year, such as June 30th or September 30th.

User Mave
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.