Course Description: This course covers the rules regarding the formation and termination of S corporations. It examines the eligibility requirements, the mechanics of filing an S corporation election, and shareholder consents, including the procedures for filing late S corporation elections and late shareholder consents. It also discusses the various ways an S corporation election may be terminated — either voluntarily or involuntarily — and the mechanisms for obtaining relief for an inadvertent termination as well as getting permission for re-election as an S corporation within five years of a termination. 

 Course Level: Basic 

 Course Prerequisites: None 

 Delivery Method: Self-study

After completing this course, you will be able to: 

• List the requirements for filing an S corporation election and how long an election is effective; 
• Explain when a corporation can seek inadvertent invalid election relief; 
• Determine when an election is effective; 
• Explain the difference between an election’s validity and its effectiveness;
• Describe the purpose of pre-election period rules; 
• Explain the purpose of Form 2553; 
• Describe the differences between the ordinary and simplified processes for obtaining relief from late elections; 
• Describe the proof that a corporation must have of filing an S election; 
• List who must consent to ensure a valid S election; 
• Explain the consent procedure; 
• Describe the circumstances when the IRS may grant an extension of time to file consents; 
• Define permissible year; 
• Explain the effect on taxable year that impacts corporations when making an S election; 
• Explain the procedures for reelecting S corporation status after termination; and 
• Explain how the five year waiting period is determined and procedures for obtaining consent for an earlier reelection.

CPE

3

CLE

N/A