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petitioner has conceded his challenge to the underlying tax
liability. Accordingly, we sustain respondent’s determination.
3. Additional Points Raised by Petitioner
Nevertheless, for the sake of completeness, we shall address
additional points raised by petitioner.
A. Termination of BP Concessions’ S Corporation Election
Petitioner argues that “Although there is no reasonable
cause exception that directly excuses the petitioners’ failure to
timely revoke the Subchapter S Election of BP Concessions, there
is no specific provision that directly indicates that a
reasonable cause exception does not apply.” An election to be an
S corporation continues until terminated. Mourad v.
Commissioner, 121 T.C. 1, 4 (2003). An S corporation election
may be terminated: (1) By revocation of the election to be
treated as an S corporation; (2) by the corporation’s ceasing to
be a small business corporation; or (3) where passive investment
income exceeds 25 percent of gross receipts and the corporation
has subchapter C earnings and profits. See sec. 1362(d); Mourad
v. Commissioner, supra. The Code provides no other manner in
which to terminate an S corporation election. Mourad v.
Commissioner, supra.
While section 1362(b)(5) authorizes the Secretary to treat
late S corporation elections as timely if the Secretary
determines that there was “reasonable cause for the failure to
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