S Corporations - Overview

Overview

This course provides an overview of the key aspects and tax implications of S Corporations. Participants will learn the mechanics of electing Subchapter S status, compare S Corporations to other entity structures, and explore compliance requirements such as corporate formalities. Highlights include a detailed discussion of Form 1120S, accountable plans, taxable fringe benefits, officer reasonable compensation, and IRS audit strategies. The course also covers Schedules K-1, K-2, and K-3, as well as the concept of effectively connected income. Practitioners will gain practical insights into advisory services and strategies for representing clients before the IRS.

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Overview of S Corporation election and compliance requirements
• Comparison of S Corporations with other business entities
• Preparing Form 2553 and addressing late filing relief
• Shareholder stock and debt basis considerations
• Form 1120S and Schedule K-1: key aspects and reporting requirements
• Officer reasonable compensation requirements and IRS audit strategies
• Introduction to Schedules K-2 and K-3
• Compliance with corporate formalities and taxable fringe benefits

Prerequisites

None

Designed For

CPAs, EAs, and tax professionals working with or advising S Corporations

Objectives

• Compare S Corporations with other entity structures to assess suitability.
• Prepare Form 2553, Election by a Small Business Corporation, for clients.
• Identify “reasonable cause” relief for late filing of Form 2553.
• Analyze shareholder stock and debt basis requirements.
• Highlight key components of Form 1120S and Schedule K-1.
• Discuss the requirements for officer reasonable compensation and its implications.
• Identify who is required to receive reasonable compensation.
• Apply facts and circumstances to advise clients on reasonable compensation.
• Develop strategies to defend reasonable compensation during IRS audits.
• Review the preparation of Schedules K-2 and K-3 for entity compliance.
• Understand the implications of effectively connected income for S Corporations.

Preparation

None