S Corporation Owners Should Consider Having the Validity of Their S Elections Checked Periodically
Preventive Maintenance May Avoid the Need for Emergency Repairs
Mark Twain is often quoted as saying that “everybody talks about the weather, but nobody does anything about it.” Today’s tax tip is based on a similar observation: most S corporation shareholders talk about the difficulty of maintaining S elections, but very few do anything about it. In a column that appeared earlier this year in The Journal of Passthrough Entities, Bradley Arant Boult Cummings tax partner Stuart Frentz recommended that tax professionals urge their S corporation clients to do something about it by scheduling periodic check-ups to keep their S elections in working order. Stuart’s column was written for a tax publication aimed at tax practitioners; however, those directly involved in maintaining S elections should also know the benefits of preventive maintenance for S corporations. Stuart advises owners of S corporations in particular to read this S Corporation Corner.
This article is reprinted with the publisher’s permission from the Journal of Passthrough Entities, a bi-monthly journal published by CCH, a Wolters Kluwer business. Copying or distribution without the publisher’s permission is prohibited. All Rights Reserved.