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CPE Self-Study

S Corporations: Key Issues, Compliance, and Tax Strategies

  • $109.00-$139.00
    S Corporations: Key Issues, Compliance, and Tax Strategies In Stock Product #: 736163
    AICPA Member: $109.00
    Non-Member: $139.00

With this CPE course, get the knowledge you need to speak effectively to new and current clients about how you can make the S corporation business model work for them. Enhance your abilities 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 enable you to effectively discuss with clients the importance of shareholder basis when contemplating distributions, and how distributions and other items affect the accumulated adjustment account. You'll also be prepared to alert clients to when the built-in gain tax may or may not apply and explain the ramifications of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) for S corporations.

Learning Objectives

This course will prepare you to:

  • Determine when an S corporation may be advantageous for a business
  • Identify the potential disadvantages to operating as an S corporation
  • Identify the requirements that must be met to qualify 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
  • Determine when the S election becomes effective
  • Identify who must consent to the election
  • Identify causes of voluntary and involuntary termination
  • Identify revocation of the election
  • Recognize events causing involuntary termination
  • Recall methods of allocating income for the short years caused by a termination
  • Determine whether an S corporation is subject to tax
  • Calculate the tax on built-in gains
  • Determine income or loss that passes through to the shareholder
  • 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 losses can be offset by debt basis after stock basis has been reduced to zero
  • Determine how accumulated earnings and profits (AE&P), accumulated adjustments account (AAA), other adjustments account (OAA), and the shareholder's basis are affected by distributions
  • Determine permitted fiscal years, elections, and user fees
  • Identify situations in which a fiscal year is allowable
  • Recognize when a Section 444 election and resulting required payments should be made
  • Recognize active and passive income and determine material participation
  • Determine whether and to what extent passive losses can be deducted against other income
  • Identify which fringe benefits are deductible by the shareholders

Key Topics

  • Advantages and 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

Who Will Benefit?

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

Prerequisite: None

Advance Preparation: None

About the Authors

Gregory B. McKeen, CPA



About the Publisher

AICPA

About the AICPA The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 412,000 members in 144 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialty credentials for CPAs who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation, which sets a new standard for global recognition of management accounting.