S Corporations: Key Issues, Compliance and Tax Strategies - Tax Staff Essentials

New or existing clients and business need assistance with the most misunderstood areas of S Corporations taxation and how they can use them to their advantage. Be prepared to explain the benefits and drawbacks of electing S Corporation status and why more business taxpayers favor the pass-through entity over the C Corporation. This course will give you the knowledge you need to speak effectively to potential business clients and existing shareholders about how you can make the S Corporation business model work for them.


Identify the advantages and potential disadvantages of operating as an S corporation.

-Recognize individuals and entities that are eligible to own S corporation stock.

-Determine how to make a proper S corporation election.

-Identify causes of voluntary and involuntary termination.

-Recall methods of allocating income for the short years caused by a termination.

-Calculate the tax on built-in gains.

-Identify the items of income, gain, loss, and deduction that adjust basis of shares and indebtedness and the order of application of the items.

-Determine how accumulated earnings and profits, accumulated adjustments account, other adjustments account, and the shareholder's basis are affected by distributions.

-Recognize when a Section 444 election and resulting required payments should be made.

-Determine whether and to what extent passive losses can be deducted against other income.

-Identify which fringe benefits are deductible by the shareholders.


Advantages vs. disadvantages of S Corporations

-S Corporation Qualifications

-Electing S Corporation status

- Termination of S Corporation Status

-S Corporation Tax on Built-in Gains

-S Corporation Pass-Through to Shareholders, Basis and Losses

-S Corporation Distributions

-Taxable Year of S Corporations

-S Corporation Passive Activity Rules, Fringe Benefits, and Other Considerations

Additional Information

Designed For

Staff and senior associates in public accounting who assist clients with tax compliance for closely held S Corporations


American Institute of CPAs


8.00 Taxes



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