November 19, 2019 S-corporations may benefit from converting to C-corporations because of the new, flat 21 percent tax rate. Tax Reform changes affecting conversion: The corporation should report net adjustments attributable to revocation over six years. Cash distributions following the post-termination transition period may be treated as coming out of the corporation’s accumulated adjustments account and accumulated earnings and profits proportionally. These law changes only apply to a C-corporation that: Was an S corporation on December 21, 2017. Revokes its S corporation election between December 22, 2017 and December 21, 2019. Has the same owners of stock in identical proportions on the date of revocation and December 22, 2017. For more information, see Corporate Methods of Accounting on the Tax Reform page.