S Corporations: Tax Compliance, Elections, and Best Practices

Overview

This comprehensive course covers the most common aspects and tax implications of S Corporations, providing a deep dive into their structure, tax treatment, and compliance requirements. Participants will learn the mechanics of electing Subchapter S status, with discussions on Form 2553 and relief options for late filings. The course also explores the application of Rev. Proc. 2022-19 and Rev. Proc. 2023-3, analyzing their differences and implications under I.R.C. §1361 and §1362. Key topics include corporate formalities, shareholder stock and debt basis, and highlights of Form 1120S and its schedules (K-1, K-2, and K-3). Additionally, participants will gain insights into officer reasonable compensation requirements, audit strategies, and corrective measures for eligibility errors.

*Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

Subchapter S status election and compliance requirements
Relief for late Form 2553 filings under Rev. Proc. 2022-19
Comparison of Rev. Proc. 2022-19 and Rev. Proc. 2023-3
I.R.C. §1361 and §1362 analysis for S Corporation elections
Corporate governance and formalities compliance
Shareholder stock and debt basis rules
Built-in capital gains and other aspects of Form 1120S
Schedules K-1, K-2, and K-3 preparation and reporting requirements
Officer reasonable compensation: requirements, advisory strategies, and audit defenses
S Corporation eligibility errors and corrective measures

Prerequisites

None

Designed For

CPAs, EAs, and tax professionals working with or advising S Corporations

Objectives

Compare S Corporations to other entity structures to assess suitability
Prepare Form 2553 and explain relief options for late filings under Rev. Proc. 2022-19
Differentiate between Rev. Proc. 2022-19 and Rev. Proc. 2023-3
Analyze I.R.C. §1361 and §1362 in the context of S Corporation elections and compliance
Identify and address S Corporation eligibility errors and implement corrective measures
Understand and apply corporate governance procedures and corporate formalities
Review shareholder stock and debt basis rules and implications
Highlight critical aspects of Form 1120S, including built-in capital gains and accountable plans
Discuss the preparation and reporting requirements for Schedules K-1, K-2, and K-3
Explain officer reasonable compensation requirements, including advisory strategies and audit defenses