26 U.S.C. § 1354 : US Code - Section 1354: Alternative tax election; revocation; termination

Search 26 U.S.C. § 1354 : US Code - Section 1354: Alternative tax election; revocation; termination

(a) In general
A qualifying vessel operator may elect the application of this
subchapter.
(b) Time and manner; years for which effective
An election under this subchapter -
(1) shall be made in such form as prescribed by the Secretary,
and
(2) shall be effective for the taxable year for which made and
all succeeding taxable years until terminated under subsection
(d).
Such election may be effective for any taxable year only if made on
or before the due date (including extensions) for filing the
corporation's return for such taxable year.
(c) Consistent elections by members of controlled groups
An election under subsection (a) by a member of a controlled
group shall apply to all qualifying vessel operators that are
members of such group.
(d) Termination
(1) By revocation
(A) In general
An election under subsection (a) may be terminated by
revocation.
(B) When effective
Except as provided in subparagraph (C) -
(i) a revocation made during the taxable year and on or
before the 15th day of the 3d month thereof shall be
effective on the 1st day of such taxable year, and
(ii) a revocation made during the taxable year but after
such 15th day shall be effective on the 1st day of the
following taxable year.
(C) Revocation may specify prospective date
If the revocation specifies a date for revocation which is on
or after the day on which the revocation is made, the
revocation shall be effective for taxable years beginning on
and after the date so specified.
(2) By person ceasing to be qualifying vessel operator
(A) In general
An election under subsection (a) shall be terminated whenever
(at any time on or after the 1st day of the 1st taxable year
for which the corporation is an electing corporation) such
corporation ceases to be a qualifying vessel operator.
(B) When effective
Any termination under this paragraph shall be effective on
and after the date of cessation.
(C) Annualization
The Secretary shall prescribe such annualization and other
rules as are appropriate in the case of a termination under
this paragraph.
(e) Election after termination
If a qualifying vessel operator has made an election under
subsection (a) and if such election has been terminated under
subsection (d), such operator (and any successor operator) shall
not be eligible to make an election under subsection (a) for any
taxable year before its 5th taxable year which begins after the 1st
taxable year for which such termination is effective, unless the
Secretary consents to such election.