Understanding S Corporation Taxation: Late S Corporation Elections, Disproportionate Distributions, and Selling Shares (SCL2)

Overview

You could pay $0 for this course!

This course qualifies for EA/IRS and CFP credit. If you need EA/IRS credit, please contact Tyler Dion (tdion@masscpas.org) after you have registered and provide him your PTIN number.

S corporation taxation has a lot of pieces. There are helpful elections you can make that can potentially save your client money, but there are also rigid rules to adhere to. For example, if there is more than one class of stock, it can terminate the S corporation election. Learning how to successfully navigate these rules can make all the difference. In this course, we will discuss some of the more common specialty areas experienced by practitioners - late filing relief for S corporation elections, disproportionate distributions, and selling S corporation shares. While these items may not come up on every single Form 1120-S, you will be able to add more value to clients when they do.

This course qualifies for reimbursement through the state’s Workforce Training Express Fund. Firms/companies with fewer than 50 staff can be reimbursed up to 100% of the cost of training and firms/companies with 50-100 employees can be reimbursed up to 50% of the cost of training. You must register for the course and apply for reimbursement through the Workforce Training Express Fund website a minimum of three weeks prior to the start of the course. The course code for this program is C-13023. To learn more, click here or contact Julia Ekelund at jekelund@masscpas.org.

Highlights

Making an S corporation election and late filing relief Disproportionate distributions Selling S corporation shares Redemption rules

Prerequisites

Basic understanding of tax rules for flow-through entities

Designed For

Tax and financial advisors with clients who have formed S corporations

Objectives

Recall the rules for a late S corporation election Identify the tax implications of an S corporation making disproportionate distributions to S corporation shareholders Recognize the tax rate applicable to the sale of S corporation shares