[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1368-1T]

[Page 754-755]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1368-1T  Distributions by S corporations (temporary).

    (a) through (f)(5)(ii) [Reserved]. For further guidance, see Sec. 
1.1368-1(a) through (f)(5)(ii).
    (f)(5)(iii) Corporate statement regarding elections. A corporation 
makes an election for a taxable year under Sec. 1.1368-1(f) by 
attaching a statement to a timely filed original or amended return 
required to be filed under section 6037 for that taxable year. In the 
statement, the corporation must identify the election it is making under 
Sec. 1.1368-1(f) and must state that each shareholder consents to the 
election. In the case of elections for taxable years beginning before 
January 1, 2003, an officer of the corporation must sign under penalties 
of perjury the statement on behalf of the corporation. In the case of 
elections for taxable years beginning after December 31, 2002, the 
statement described in this paragraph (f)(5)(iii) shall be verified by 
signing the return. A statement of election to make a

[[Page 755]]

deemed dividend under Sec. 1.1368-1(f) must include the amount of the 
deemed dividend that is distributed to each shareholder.
    (f)(5)(iv) through (g)(2)(ii) [Reserved]. For further guidance, see 
Sec. 1.1368-1(f)(5)(iv) through (g)(2)(ii).
    (g)(2)(iii) Time and manner of making election. A corporation makes 
an election under Sec. 1.1368-1(g)(2)(i) for a taxable year by 
attaching a statement to a timely filed original or amended return 
required to be filed under section 6037 for a taxable year (without 
regard to the election under Sec. 1.1368-1(g)(2)(i)). In the statement, 
the corporation must state that it is electing for the taxable year 
under Sec. 1.1368-1(g)(2)(i) to treat the taxable year as if it 
consisted of separate taxable years. The corporation also must set forth 
facts in the statement relating to the qualifying disposition (e.g., 
sale, gift, stock issuance, or redemption), and state that each 
shareholder who held stock in the corporation during the taxable year 
(without regard to the election under Sec. 1.1368-1(g)(2)(i)) consents 
to this election. For purposes of this election, a shareholder of the 
corporation for the taxable year is a shareholder as described in 
section 1362(a)(2). A single election statement may be filed for all 
elections made under Sec. 1.1368-1(g)(2)(i) for the taxable year. An 
election made under Sec. 1.1368-1(g)(2)(i) of this section is 
irrevocable. In the case of elections for taxable years beginning before 
January 1, 2003, the statement through which a corporation makes an 
election under Sec. 1.1368-1(g)(2)(i) must be signed by an officer of 
the corporation under penalties of perjury. In the case of elections for 
taxable years beginning after December 31, 2002, the statement described 
in the preceding sentence shall be verified by signing the return.
    (g)(2)(iv) [Reserved]. For further guidance, see Sec. 1.1368-
1(g)(2)(iv).

[T.D. 9100, 68 FR 70706, Dec. 19, 2003]