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in revenue ruling 2004 85 situation 1 corp ex an S corporation formed in state a wholly-owned subway a corporation that X had elected to treat as a qualified subchapter S subsidiary also known as a Q sub Corp X wanted to reincorporate in state B so the shareholders of X formed a new state B Corporation Corp you and had X merge into you the ruling held that the merger of X into you was an F reorganization and every organization is a mere change an identity form or place of organization of one corporation however affected since you was a continuation of X you was treated as an S corporation without having to make a new s election further because you was a continuation of X the F reorganization did not terminate esas q sub election for sub 1 thus there was no need to make a new accuse of election for sub 1 the
