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

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.