Tax Reform and S Corporation Reasonable Compensation

The 2018 tax reform known as the Tax Cuts and Jobs Act (TCJA) allows for a new 20 percent deduction on certain business income, known as the Section 199A deduction. One should have the right type of business and the right taxable income. In our past blog article¬†Christmas Came Early In 2018, we discussed different […]

Can S Corporation Shareholders Take Unequal Distributions

Question: We are an S Corporation with a fiscal year end of September 30th. Is there a way that the existing S Corporation shareholders can take distributions to pay the estimated income taxes, and the new shareholders would not take distributions until next year? Can this be done without breaking the S election? Answer: In […]

How To Dissolve a NYC S-Corporation in 2015

Question: I need to dissolve a NYC S corporation during 2015. I think there are additional steps that need to be taken into consideration. Please advise. Answer: New York lawmakers recently implemented the most significant tax reform since the 1940s. What’s more, many of these changes go into effect starting in the 2015 tax year. […]

Are Health Reimbursement Accounts Still Allowed?

The IRS recently released an update on the tax rules for health reimbursement accounts in relation to the Affordable Care Act (ACA) and S Corporations. This update addresses small businesses that do not offer healthcare coverage, but do reimburse employees for insurance purchased on the healthcare exchanges. The IRS is waiving noncompliance penalties for the […]

Filing For S Corporation Late Election Relief

Many existing C Corporations and new businesses elect to be taxed as an S Corporation. However, some of these businesses fail to meet the filing deadline, which is 75 days after incorporating or 2 months and 15 days after the beginning of the tax year. Fortunately, there are exceptions to this rule in which businesses […]

S Corporation Filings Impact Your Individual Return

One of the most common questions we receive from S Corporation owners is, “Why do I need to file my corporate taxes before I file my individual taxes?” It’s important for us to first define a subchapter S Corporation (S-Corp). An S-Corp is a “pass through” entity that is generally not subject to federal or […]