§1354 Alternative Tax Election; Revocation; Termination

Summary

A qualifying vessel operator can choose to use these special tax rules by filing the form the Secretary requires. The choice applies for the taxable year you make it and for every year after until it is ended. If one member of a controlled group makes the choice, it applies to 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 taxable year, the revocation takes effect on the 1st day of that taxable year. If you revoke after that day, it takes effect on the 1st day of the next taxable year. If the revocation names a future date, it is effective for taxable years starting on or after that date. If a corporation stops being a qualifying vessel operator at any time on or after the 1st day of the 1st taxable year it was an electing corporation, the election ends on the date it stopped. The Secretary will set rules for annualizing and other details when termination happens. After a termination, the operator (and any successor) cannot make the election again for any taxable year before its 5th taxable year that begins after the 1st taxable year for which the termination is effective, unless the Secretary agrees.