This course was filmed live at the 2023 New Money Summit.
The S corporation continues to be the most popular tax form for business entities in the U.S. However, this tax status has several traps for the unwary. Tax professionals need to anticipate situations which might be troublesome for S corporation and shareholder clients. There are special problems in which an unincorporated entity, such as a limited liability company, elects to be an S corporation for tax purposes. In 2022 the IRS issued a streamlined procedure whereby certain of these entities can correct provisions in their operating agreements which might cause these associations to be in violation of Subchapter S rules.
This program explains the areas of exposure for S corporations in eligibility for pass-through entity status, and explains some audit issues that might subject an S corporation and its shareholders to adjustments and penalties. The session also explains important rules for correcting faults in an S corporation's operation and ownership.
Learning Objectives
Upon completion of this course, participants will be able to:
Be aware of the most frequent causes for invalidation of S corporation status.
Apply remedies appropriate to the time frames for repairing violations of Subchapter S.
Discern the issues that attract the most attention in IRS examinations of S corporations
Evaluate strategies for protecting S corporations and their shareholders.
Advise clients of "dos and don'ts" concerning S corporations.
Major Topics
S Corporation Invalidation
Reporting Violations Subchapter S
IRS Examinations of S Corporations
S Corporation dos and don'ts
