2016 A2 S Corporation Shareholder Issues

The initial basis of a shareholder's stock in an S corporation depends on how the shareholder acquired the shares. This basis is then adjusted each year by the ...

Current developments in S corporations - The Tax Adviser

2022-19 provides that the IRS will not treat any disproportionate distributions as violating the one-class-of-stock requirement when the ...

S Corporation compensation and medical insurance issues - IRS

S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation ...

You Can Do What? – Disproportionate Distributions By S Corporations

An S corporation cannot have: (i) more than 100 shareholders, (ii) a shareholder other than an individual (with certain exceptions), (iii) a ...

S corporation did not lose its status due to misappropriated ...

The Tax Court held that an S corporation's disproportionate distributions do not change its status as an S corporation. · The shareholder is ...

Tax issues that arise when a shareholder or partner dies

For an S corporation, the death of a shareholder creates a potential of inadvertently terminating the S election. In particular, the successor ...

S CORPORATIONS - Morgan Lewis

Stock Sale Tax Treatment. From the buyer's perspective, the issue of whether the transaction will be treated as an asset sale for tax purposes pertains ...

Disproportionate Distributions Didn't Terminate S Corp Status

The first rule is that shareholders have to choose to be taxed as an S corporation. Shareholders like Maggard do so by filling out a Form 2553, ...

Larry's Tax Law - Foster Garvey

... in the S corporation setting is important. Failure to pay attention to the issue can place S corporations and their shareholders in peril.

Say Yes! to S Corporation Federal Tax Diligence...Your IRS Tax Bill ...

2016-Issue 20—At first glance, acquiring an S corporation is a ... shareholder limit requirement is arguably the least likely to be an issue.

S-Corporation Concerns with Employment Tax and Income Tax

For example, assume an S-corporation shareholder-employee does not receive any wages or dividends in Year 1. The IRS may claim it is ...

2016 Instructions for Form 1120S - IRS

Shareholders of S corporations not required to use an accrual method of accounting may elect to currently deduct the preproductive period ...

Efforts to Address the Compliance Risk of Underreporting of S ...

less than 9 percent of S corporations did not issue a Form W-2 to its shareholders. Office of Audit Comment: As noted, the U.S. Department ...

2016 B4 S Corporation Entity Issues

For more information about trusts as shareholders of S corporations and their beneficiaries, see the. 2016 University of Illinois Federal Tax ...

Tax Issues in Selling S Corporation Stock | Marcum LLP

A corporation may inadvertently terminate its S election if it transfers stock in a form of joint ownership resulting in more than 100 ...

Sec. 1367 Adjustments to basis of stock of shareholders, etc.

(A) In general. If any person acquires stock in an S corporation by reason of the death of a decedent or by bequest, devise, or inheritance, section 691 shall ...

Larry's Tax Law - Foster Garvey

The peril of having an ineligible shareholder is simple: the corporation's S election is terminated as of the first day the shares are held by the ineligible ...

When A Shareholder Loses Control of Their S Corporation | JD Supra

The Court stated that a binding agreement that disproportionally affected the shareholders' economic rights was necessary under the Regulation ...

Be Careful with Living Trusts that Own S Corporation Stock

Fortunately, a little bit of review and foresight with respect to a Living Trust that owns S corporation stock can prevent these types of issues ...

Understanding S Corps | What is an S Corporation? - Nolo

Each S corp shareholder must be a U.S. citizen or resident. An S corp can't have more than 100 shareholders. S corp profits and losses can be ...