Monthly Tax Update with Ed Zollars - Keeping Out of Trouble: The Risk of Invalid or Terminated S Elections (2 hours - afternoon) - NEW! - Webcast

Overview

Stay in the know with this monthly tax update series, featuring Ed Zollars, CPA. Each month, Ed breaks down a different federal tax topic so you can stay on top of the changes and provide optimal service to your clients.

This session is designed for experienced tax CPAs who are working with S corporation clients or employers. It provides a detailed guide to navigating S corporation election imperfections, helping practitioners understand how to correct late, invalid, or inadvertently terminated S elections to avoid adverse tax consequences such as double taxation. The session covers various IRS relief mechanisms, from automatic procedures to Private Letter Rulings, equipping attendees with practical knowledge to preserve valuable S corporation status for their clients.

OSCPA has partnered with the Idaho Society of CPAs for this event.

Note: Title changed and was initially advertised as: Monthly Tax Update with Ed Zollars (2 hours - afternoon) - NEW! - Webcast

Highlights

• Identifying Common S Election Defects: Participants will learn to accurately diagnose problems such as late Form 2553 filings, invalid S elections from inception due to ineligible shareholders, more than one class of stock, or missing shareholder consents, inadvertent terminations of valid S elections (e.g., ceasing to be a small business corporation, excessive passive investment income), and ancillary election failures (such as late QSST, ESBT, or QSub elections).
• Automatic and Simplified Relief Procedures (Rev. Proc. 2013-30): The session details the primary simplified method for obtaining relief for late S corporation elections and certain related elections (ESBT, QSST, QSub). This includes understanding eligibility requirements like the 3-year-and-75-day time limit, the "solely because of lateness" condition, the need for reasonable cause and diligence, and consistent reporting by the entity and its shareholders.
• Addressing Common Issues via Rev. Proc. 2022-19: Participants will learn how this procedure provides "taxpayer assistance procedures" to resolve certain frequently encountered S corporation issues without needing a Private Letter Ruling (PLR). Topics include clarification on the one-class-of-stock rule regarding agreements and disproportionate distributions, and the self-correction pathway for non-identical governing provisions. It also addresses non-critical errors on election forms and inconsistent tax return filings.
• Inadvertent Error Relief via Private Letter Ruling (IRC § 1362(f)): This section covers the process for obtaining discretionary relief when simplified procedures are unavailable. Key requirements for granting relief include demonstrating inadvertence for the defect, taking timely corrective action after discovery, and agreeing to IRS-mandated adjustments. The session will also detail the formal PLR request process, including its components, user fees, and submission procedures.

Designed For

CPAs and tax professionals

Objectives

• Get Up-to-date information on a variety of tax topics