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

Overview

New or existing clients and businesses need assistance with the most misunderstood areas of S corporations taxation and how they can use them to their advantage. Be prepared to explain the benefits and drawbacks of electing S corporation status and why business taxpayers may favor the pass-through entity over the C corporation. This course will give you the knowledge you need to speak effectively to potential business clients and existing shareholders about the S corporation business model that may work for them.

Highlights

S corporation qualifications

Election of S corporation status

Termination or revocation of S corporation status

Pass-through of income and loss items to the shareholder

Distributions to S corporation shareholders

Reporting and filing requirements

Choice of year-end

Shareholder basis

Prerequisites

None

Designed For

Public accounting firm staff and senior associates

CPAs

S corporation tax filers

Objectives

Determine when an S corporation may be advantageous for a business.
Identify the potential disadvantages of operating as an S corporation.
Identify the requirements that must be met to qualify as an S corporation.
Recognize individuals and entities that are eligible to own S corporation stock.
Determine when the S election becomes effective.
Identify causes of voluntary and involuntary termination.
Determine whether an S corporation is subject to tax.
Determine income or loss that passes through to the shareholder.
Identify situations in which a fiscal year is allowable.
Recognize active and passive income
Determine material participation.