§1354 Alternative Tax Election; Revocation; Termination

Summary

A qualifying vessel operator may choose to use these special tax rules. The choice must be made in the form the Secretary requires. It takes effect for the tax year you make it and for later years until it ends. You must make the choice by the due date for your tax return, including extensions. If one member of a controlled group makes the choice, it covers all qualifying vessel operators in that group. You can end the choice by revoking it. If you revoke on or before the 15th day of the 4th month of the tax year, the revocation works from the 1st day of that tax year. If you revoke after that day, it works from the 1st day of the next tax year. A revocation can name a future date on or after the day it is made to take effect then. The choice also ends when the corporation stops being a qualifying vessel operator, effective on the date it stops. The Secretary will set rules for annualizing in that situation. After a termination, the operator (and any successor) cannot make the choice again for any tax year before its 5th taxable year that begins after the first tax year the termination is effective, unless the Secretary agrees.