S Corporations: Key Issues, Compliance, and Tax Strategies - Tax Staff Essentials - Society of Louisiana Certified Public Accountants

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

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

Public accounting firm staff and senior associates

CPAs

S corporation tax filers

Objectives

Recognize the advantages and disadvantages of S corporation status.
Recognize when the S election becomes effective.
Identify shareholder consent rules and causes of invalid elections.
Identify permitted fiscal years, elections, and user fees.
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.