As experienced staff members master the preparation intricacies of an 1120-S tax return, they are expected to understand and apply the underlying concepts, principles and laws governing S corporation status. This course is designed to illustrate in both theory and practice overarching principles that govern S corporations from formation to revocation, termination and liquidation. Experienced, client-facing staff should be aware of the pitfalls that may inadvertently cause an S-status termination or may generate unintended tax consequences to shareholders.
Learning Objectives
- Prepare more complicated S corporation returns
- Understand certain advanced concepts of S corporation taxation
- Protect S corporation clients from falling out of S corporation eligibility
Major Topics
- What exactly is terminating S corporations, including recent rulings
- Schedules K-2 and K-3 reporting requirements and filing exceptions
- Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations
- Shareholder changes Living Trust and causes S termination
- LLCs electing S status, changing agreement could terminate election
- Inherited a new client with reporting errors? What are my options?
- Debt vs. equity and §385; Federal Express battled and won, how do we?
- Are we to expect SECA tax on pass-through entities?
- Shareholders losing “substance over form” argument
- Basis neither increased by phantom income, nor reduced by non-deducted pass-through losses
- Can I accrue expenses payable to a shareholder? Sure, but can I deduct them?
- How §179 limitations affect S corp. basis
- Comparison of liquidation of a C corporation vs. the liquidation of an S corporation
- Did not timely file Form 2553? A simple method to correct
- Is there a “flexible standard of law” in regard to closely held entities?
