What is the rule regarding irrevocability of the carry-over option for excess tax credits?

• A. The carry-over option is revocable at any time.
• B. The irrevocability rule applies only to the carry-over option and not to the option to refund or issuance of tax credit certificate.
• C. The carry-over option can be revoked if the taxpayer changes status.
• D. The carry-over option is not allowed.

Answer: (B)

The key idea is that when you have excess tax credits, you can handle them by carrying them forward to future years or by taking a refund or a tax credit certificate. The rule being tested states that the irrevocability applies only to the carry-over option, not to the option to refund or to receive a tax credit certificate. In other words, once you elect to carry forward excess credits, that choice cannot be changed, while the refund or issuance options are not bound by that same irrevocability. That makes the chosen answer correct because it directly matches the policy: the carry-over decision is irrevocable, but refunds or certificates are not restricted in the same way. The other statements contradict the irrevocability concept or misstate the availability of the carry-over option.