§1354 Alternative Tax Election; Revocation; Termination

Summary

A qualifying vessel operator can elect this alternative tax, and the election then covers every qualifying vessel operator in its controlled group. The election stays in effect for the year it is made and all later years until it ends. The operator can revoke it: a revocation made by the 15th day of the 4th month of a tax year counts from the start of that year, a later one counts from the start of the next year, or the operator can name a future date. The election ends automatically on the day the company stops being a qualifying vessel operator. After an election ends, the operator (or a successor) cannot elect again before its 5th tax year after the first year the termination took effect, unless the IRS consents.