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Thursday, July 31, 2025 Webcast Replay

Keeping Out of Trouble: The Risk of Invalid or Terminated S Elections (E2507234)

12:00 PM - 2:00 PM EDT
Replay

ON24

2 CPE Credits in TX

OVERVIEW

This session 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.

DESIGNED FOR

Experienced tax accountants who work with S corporation clients or employers

BENEFITS

  • Gain an understanding of various IRS relief mechanisms, from automatic procedures to Private Letter Rulings.
  • Preserve valuable S corporation status for clients.

HIGHLIGHTS

Major topics to be covered include:
  • Identifying common S election defects: Diagnose problems such as late Form 2553 filings, invalid S elections, 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 (e.g., late QSST, ESBT, QSub elections).
  • Automatic and simplified relief procedures (Rev. Proc. 2013-30): Learn the primary simplified method for obtaining relief for late S corporation elections and certain related elections (e.g., ESBT, QSST, QSub). This includes understanding eligibility requirements like the three-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: 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.

COURSE LEVEL

Advanced

INSTRUCTOR

Edward Zollars

Edward K. Zollars, CPA
(4.8)

Tax and Technology Partner

Thomas Zollars & Lynch, Ltd.

Ed is a partner with the firm of Thomas, Zollars & Lynch, Ltd, in Phoenix, Arizona, and specializes in tax issues for closely held businesses and individuals. He has served on committees with the American Institute of CPAs' (AICPA) Tax Section and currently serves on the Arizona Society of CPAs' (ASCPA) legislative tax liaison committee. Ed has published tax podcasts on tax matters and is currently producing the weekly audio and video for the Current Federal Tax Developments podcast on current tax matters for Kaplan Financial Education and the related blog with regular tax updates throughout the week. Along with writing, editing and presenting courses for the past 15 years, Ed has written articles published in Practical Tax Strategies and The Tax Adviser. He is a frequent contributor to a number of online professional tax discussion groups, including the NJCPA Member Open Forum.

PRICING

$74.00 - Member

$139.00 - Nonmember

$0.00 - Pass Holder

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Note: Online pre-registration will close on July 31 at 12:00 PM.

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