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.