S Corporations: Tax Compliance, Elections, and Best Practices

Overview

This comprehensive course covers the most common aspects and tax implications of S Corporations, providing a deep dive into their structure, tax treatment, and compliance requirements. Participants will learn the mechanics of electing Subchapter S status, with discussions on Form 2553 and relief options for late filings. The course also explores the application of Rev. Proc. 2022-19 and Rev. Proc. 2023-3, analyzing their differences and implications under I.R.C. §1361 and §1362. Key topics include corporate formalities, shareholder stock and debt basis, and highlights of Form 1120S and its schedules (K-1, K-2, and K-3). Additionally, participants will gain insights into officer reasonable compensation requirements, audit strategies, and corrective measures for eligibility errors.

*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

• Subchapter S status election and compliance requirements
• Relief for late Form 2553 filings under Rev. Proc. 2022-19
• Comparison of Rev. Proc. 2022-19 and Rev. Proc. 2023-3
• I.R.C. §1361 and §1362 analysis for S Corporation elections
• Corporate governance and formalities compliance
• Shareholder stock and debt basis rules
• Built-in capital gains and other aspects of Form 1120S
• Schedules K-1, K-2, and K-3 preparation and reporting requirements
• Officer reasonable compensation: requirements, advisory strategies, and audit defenses
• S Corporation eligibility errors and corrective measures

Prerequisites

None

Designed For

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

Objectives

• Compare S Corporations to other entity structures to assess suitability
• Prepare Form 2553 and explain relief options for late filings under Rev. Proc. 2022-19
• Differentiate between Rev. Proc. 2022-19 and Rev. Proc. 2023-3
• Analyze I.R.C. §1361 and §1362 in the context of S Corporation elections and compliance
• Identify and address S Corporation eligibility errors and implement corrective measures
• Understand and apply corporate governance procedures and corporate formalities
• Review shareholder stock and debt basis rules and implications
• Highlight critical aspects of Form 1120S, including built-in capital gains and accountable plans
• Discuss the preparation and reporting requirements for Schedules K-1, K-2, and K-3
• Explain officer reasonable compensation requirements, including advisory strategies and audit defenses

Preparation

None