S Corporations: Key Issues, Compliance, and Tax Strategies - Tax Staff Essentials

Overview

Tax planning strategies for new businesses considering electing S corporation status, and the pros and cons of switching from a C corporation to an S corporation.

Highlights

Key Topics

• Advantages and disadvantages of S corporations
• Electing S corporation status
• Termination of S corporation status
• S corporation tax on built-in gains
• S corporation pass-through to shareholders, basis and losses
• S corporation distributions
• Taxable year of S corporations
• S corporation passive activity rules, fringe benefits and other considerations

Prerequisites

None

Designed For

Who Will Benefit

• Public accounting firm staff and senior associates
• CPAs
• S corporation tax filers

Objectives

Learning Outcomes

• Recognize the advantages and disadvantages of S corporation status.
• Recognize when the S election becomes effective.
• Identify permitted fiscal years, elections, and user fees.
• Identify shareholder consent rules and causes of invalid elections.
• Recognize events causing involuntary termination.
• Recognize when an S corporation is subject to tax at the entity level.
• Recognize how accumulated earnings and profits, accumulated adjustments accounts, other adjustments accounts, and shareholder bases are affected by distributions.
• Recall the applicability of various S corporation filing requirements.