S Corporation Core Tax Issues from Formation Through Liquidation

Learn how to prepare complicated S corporation returns. Understand certain advanced concepts of S corporation taxation and how to protect S corporation clients from falling out of eligibility. Use real-life examples for group analysis, discussion, and problem solving.
Highlights

• Coverage of recent tax acts and new legislation
• Impacts of the Protecting Americans Against Tax Hikes (PATH) Act of 2015
• Current private letter rulings reveal the failure in one or more S corporation eligibility requirement that is causing inadvertent terminations
• How to avoid those terminating errors
• The $100/day penalty and transitional relief
• Affordable Care Act reporting issues and shared responsibility
• S corporations and self-employment tax – How long do we have?
• Detailed review of basis calculation rules, deducting losses, stock vs. loan, and “at-risk” basis
• Final regulations regarding open debt and the handling and repayment of shareholder loans
• Basis neither increased by phantom income nor reduced by nondeducted pass-through losses
• How IRS calculates a CPA’s reasonable compensation
• Taxable distribution in excess of basis and reporting issues to shareholders
• Proper handling of accrued expenses payable to a shareholder
• How Section 179 limitations affect S corporation basis
• Liquidation of the S corporation
• Current procedures to correct a late S corporation election
• Is there a “flexible standard of law” regarding closely held entities