Finance Exam Prep

Ran Chen, EA, CFP®

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Enrolled Agent Exam [Part 2] 29, S Corp Termination — Voluntary and Involuntary

5/26/2026 • 3 min

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How an S Corp voluntarily revokes its status and the critical timing rules involved. - The four main reasons for an involuntary S Corp termination: exceeding 100 shareholders, having ineligible shareholders, issuing more than one class of stock, and violating passive income limitations. - The specifics of the passive investment income rule, which only applies to former C Corps with accumulated E&P. - The concept of an S termination year and when the termination becomes effective. - The general 5-year waiting period to re-elect S status and potential exceptions. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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