Answered: You must file an IRS form 2553 to tell…

You must file an IRS form 2553 to tell the IRS that you want to be an S Corporation or in other words to "elect S Corporation status" otherwise you will be a C Corporation. Select one: True

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

If XYZ Corporation is a shareholder of BCD Corporation, how many times will BCD's before-tax income potentially be taxed? Has Congress provided any tax relief for this result? Explain.
Tax return preparers should be aware of which of the following? A) Taxpayers who have more than one Form W-2 B) Taxpayers without a state driver's license C) Taxpayers with more than two dependents D) Taxpayers with a non-standard or altered Form W-2
All of the following persons are classified as employees under the federal income tax withholding law with the exception of a. the president of a corporation b. an officer of the federal government c. an elected official in the state government d. a first - line supervisor e. a partner
Robert and Charles are trying to decide what form of business to form for their new company. They ask you the following question: Which of the following transactions would be considered by the IRS to be a taxable sale of assets? Changing the form of business from: a partnership to an LLC. a corporation to an LLC. All of the above. an LLC to a corporation.
Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be "$89800." . Davis does not pay back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for the appropriate excise tax intermediate sanction. The first-level taxes imposed are as follows: On the exempt organization management: $fill in the blank 1 On Davi imposed on Davis.s: $fill in the blank 2. b. A second-level tax in the amount of
Reproduce the tax formula include for individual taxpayers in good form and briefly describe each for the components of the formula. Discuss the differences between the tax formula for individuals and that for corporations.
You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an S Corporation and needs to be versed on how this type of corporation works. Identify three operating issues (e.g. accounting period, income/loss allocation, operating/liquidating distributions, stock basis calculations, fringe benefit rules) that Cathyrn should be aware of in managing this form of business.
Discuss planning opportunities with organizing a corporation. Instructions Original Post Prompt: Sarah incorporates her small business but does not transfer the machinery and equipment the business uses to the corporation. Subsequently, the machinery and equipment are leased to the corporation for an annual rent. What tax reasons might Sarah have for not transferring the machinery and equipment to the corporation when the business was incorporated?
All resident corporations (except tax-exempt Crown corporations and registered charities) have to file a corporation income tax (T2) return every tax year even if there is no tax payable. True False
There are some exceptions to Form 1099-C (Cancellation of Debt) income – i.e., reasons why you would not have to include the amount reported to you (and to the IRS) in gross income even though the amount was correctly stated on the form. Identify and briefly explain the two most common exceptions available to individuals (the two we focused on in class).
Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
In appropriate situations the IRS may assert That the Corporation be disregarded as a sham or nominee That income reported by the Corporation belongs on the shareholder’s personal Form 1040 Schedule C under the assignment of income principles. Income is reallocated under §482 to unrelated organizations Tax benefits may be denied under §269 if control of a Corporation is acquired for a purpose of avoiding federal income tax. All of the above All of the above except C All of the above except D All of the above except C & D