). Any domestic
corporation that is eligible to be a Subchapter S corporation and that ... wholly owned by a
Subchapter S corporation will be treated as a
QSub
if its parent corporation so elects.'— The
()Sub election is made on Form 8869. When the
QSub
... deemed to have liquidated into the S corporation parent. la
EFTA00597665
In general, a
QSub
is not treated as a separate corporation for federal tax purposes.12