Category Archives: S Corporation

Bozo Tax Tip #3: We Don’t Need No Stinkin’ Basis

Posted on April 12, 2023 by Russ

If there’s one issue in tax that tax professionals have trouble explaining to clients it’s basis. Your basis in an entity is, generally, the total of your investment in an entity plus income it generated less any distributions from it. … Continue reading →

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Contributing to the IRS’s Paper Backlog

Posted on May 20, 2022 by Russ

A client of ours has filed Form 2553 three times to elect S-Corporation status.  The first time, his attorney sent the form to the IRS.  The second time, my client mailed the form (right before the pandemic began).  The third … Continue reading →

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There’s No Basis for that Argument

Posted on August 25, 2021 by Russ

Yesterday, TIGTA release a report, “Efforts to Address the Compliance Risk of Underreporting of S Corporation Officers’ Compensation Are Increasing, but More Action Can Be Taken.”  From the report: TIGTA’s analysis of all S corporation returns received between Processing Years … Continue reading →

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Funding an S-Corp from an S-Corp: Distribute, Don’t Loan

Posted on June 7, 2012 by Russ

Joe Kristan has an excellent update that is a must-read for owners of multiple S-Corporations. The Tax Court validated a traditional S-Corporation planning technique: You can distribute basis from one S-Corporation to another. There are some caveats (aren’t there always?), … Continue reading →

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