Page 765 - Large Business IRS Training Guides

Triggering Events

Any of the following constitutes a triggering event:

1) The S corporation ceases to be an S corporation;
2) Liquidation, sale, exchange, or other disposition of

substantially all of the assets of the S corporation
(including in bankruptcy);

3) Cessation of the business or existence of the S

corporation;

4) Transfer of the shares
of the S corporation (including
reason of death or otherwise);
by

5) A determination by the IRS that
there has been a
material
misrepresentation or omission in a transfer

agreement.

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