§1354 Alternative tax election; revocation; termination

Summary

A qualifying vessel operator may choose to use these tax rules by filing the election on the form the IRS requires. The election applies for the tax year it is filed and keeps applying each year until ended. If one member of a controlled group elects, the election applies to all qualifying vessel operators in that group. The election can be revoked. If revoked on or before the 15th day of the 4th month of a tax year, the revocation is effective from the first day of that year. A later revocation is effective from the first day of the next tax year, unless a later effective date is named. The election ends when the operator stops qualifying, effective on that date, and the IRS will set any needed annual prorating rules. After an end, the operator and any successor may not elect again for any tax year before the fifth taxable year that begins after the first taxable year the termination was effective, unless the IRS agrees.