McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 38

{Research} Lucy and Ricky Ricardo live in Los Angeles, California.After they were married, they started a business named ILL Corporation (a C corporation).For state law purposes, the shares of stock in ILL Corp.are listed under Ricky's name only.Ricky signed the Form 2553 electing to have ILL taxed as an S corporation for federal income tax purposes, but Lucy did not sign.Given that California is a community property state, is the S election for ILL Corp.valid?