Utah Contractor Practice Exam

Form _____ is mandatory to be assigned as an S Corporation.

1. 2554

2. 2553

3. 1040

4. 1040A

The correct answer is: 2553

Form 2553 is the required form that must be filed by a corporation to elect to be taxed as an S Corporation under the Internal Revenue Code. This designation allows the income of the corporation to be passed through to the shareholders, avoiding the double taxation that typically occurs with C Corporations. By submitting Form 2553, a corporation can ensure that it qualifies for S Corporation status, which provides specific tax benefits and requirements. This form must be completed and submitted to the IRS in a timely manner, usually within a certain period after the corporation's formation or the beginning of the tax year in which the S Corporation election is desired. The correct filing of Form 2553 is essential for entities that wish to take advantage of the S Corporation taxation structure. The other forms mentioned, including Forms 2554, 1040, and 1040A, are not related to the S Corporation election process and serve different purposes in the tax system.