Bob and Gene unpack the consequences of the termination of an S election, pinpoint frequent triggers of terminations, and suggest practical strategies to prevent these issues. Their conversation underscores the need for careful planning to maintain S corporation status and outlines solutions for inadvertent terminations and other S corporation maladies. Key TakeawaysThere are complex rules governing the eligibility of S corporations, including the types of shareholders (individuals, estates, certain trusts and tax-exempt organizations qualify, but nonresident noncitizen individuals, partnerships, corporations, and ineligible trusts do not). S corporation status terminates if the election is revoked or the corporation ceases to meet all eligibility requirements at any time. An inadvertent termination can result in unfavorable tax consequences, which are compounded by the fact that the termination often is not discovered until years later.