Short Answer Questions
1. Explain some of the various reasons one would want to use effective tax planning methodologies when establishing an S Corporation.
2. What are some of the uses of an S Corporation as far as a vehicle to reduce the tax exposure of a business?
3. What are some of the various retirement plans and the fringe benefits that are involved in each of these plans?
4. How do social security benefits come into play with regard to S Corporations and taxation rules?
5. Describe the guidelines for a partner in a partnership or member in a limited liability company and the rules that govern this relationship.
6. What are some of the various audit procedures in use today for S Corporations?
7. Explain the process and steps required in an S Corporation being terminated or revoked as an S Corporation.
8. Explain the tax effects that might be realized due to a termination of an S Corporation status.
Professional Development Question
You may use one or a combination of the following when completing this exercise:
1. Online research
2. Real-life experiences
3. Interview or professional experts
4. Textbook materials
Write a 1-2 page paper that describes the overall income and estate tax planning process that S Corporations might be involved in to include the different differentiators that come into play with this decision.
Students should also include the overall descriptive process for how changes are handled for S Corporations, as well as leverage an example showing a change to an S Corporate form and how it should be handled under the guidelines.
Students should include at least one reference in their paper submission, in addition to their comments and thoughts on the required content.