[WEB] S Corporation Tax Workshop

Description

This course is designed to identify the basic rules and regulations that apply in filing a Form 2553 and preparing a Form 1120S.

Objectives

• Summarize the seven basic factors that are commonly taken into account in advising a client as to the preferred way to operate a trade or business.
• Discuss the check-the-box regulations.
• Describe the procedural rules that apply to filing Form 1120S and filing Form 2553, including filing a late Form 2553 and the penalty for late filing a Form 1120S.
• Recognize the IRS audit issues as they relate to an S corporation.
• Identify the eligible owners of an S corporation.
• Describe the types of trusts eligible to own S corp stock; when to use an ESBT or QSST.
• Discuss S corporation operational problems including filing Form 2553, selection of tax year end, methods of accounting, calculation of taxable income, fringe benefits available, the treatment of health insurance premiums, and the requirement that an S corporation must pay reasonable compensation.
• Describe the effect of the S election on the corporation, including the types of income taxes that are imposed on an S corporation and making the PTE election.
• Discuss the effect of the S election on shareholders: allocation of S corporation income and separately stated gain, loss, deduction, and credit; calculation of shareholders' basis and limitation on loss deductibility; distributions from an S corporation; AAA and Schedule M-2.
• Calculate the deduction for qualified business income under §199A.
• Describe the events that will cause termination of the S election: vote of shareholders, ceasing to be an S corporation, passive investment income test.
• Prepare a Form 1120S and report stock and debt basis on Form 7203.