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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Friday, December 6, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will provide tax preparers and advisers with detailed guidance on the most pervasive issues facing multistate taxation of S corporations. The panel will detail those states that vary from automatic acceptance of the federal S-election, review the composite return requirements, and discuss calculations, adjustments, and filing requirements for those states where the S-election fails and a composite return is not available. The panel will also outline state variances in tax treatments of qualified subchapter S subsidiaries (QSSS) and pass-through entity (PTE) elections for multistate S corporations.

Faculty

Stacey L. Roberts
State and Local Tax Director
TaxOps

Ms. Roberts has been making state and local tax (SALT) less taxing for thousands of businesses over the last 25 years. As a director of the SALTovation team at TaxOps, she guides dynamic businesses through compliance and strategic planning focused on minimizing risk and strengthening tax positions. Ms. Roberts honed her specialty at Andersen Worldwide/Andersen LLP, KPMG and Deloitte before moving in-house with a Fortune 500 company to administer state and local tax. She has also led the national SALT practice at a regional firm. Ms. Roberts is a member of the Colorado Legislative Task Force Concerning Tax Policy and a frequent speaker, instructor and author on SALT issues for industry and professional organizations.

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Meredith Smith
Partner
TaxOps

Ms. Smith expertly weaves real-life examples into why business taxpayers, tax professionals, and tax providers should care about complex state and local tax (SALT) issues. This knowledge comes from expertly navigating the web of tax laws governing SALT issues for nearly 20 years. From working with clients inside their business, she knows the questions, issues and strategies for resolution that keep businesses on the tax compliance track. Ms. Smith combines technical knowledge and in-depth industry understanding in performing nexus studies, identifying areas of risk, and designing sustainable planning opportunities for achieving tax-specific business goals. Her practice covers state income tax, property tax, sales and use tax, and business incentives and credits. Prior to TaxOps, Ms. Smith was a member of the SALT practice at KPMG, serving large, multi-jurisdictional corporations and multi-tier partnerships across industries. She is a frequent speaker and the host of the SALTovation podcast, a podcast series featuring leading voices in states and local tax. Listen in on your favorite channel: https://saltovation.captivate.fm/listen. 

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Description

Multistate taxation of S corporations presents significant challenges to tax preparers and advisers. Not all states follow the federal S-election tax guidelines, and some states do not recognize S corporations as PTEs in all circumstances.

In addition to the lack of conformity in filing requirements and status, various states have different treatments of nonresident shareholders and differing rules regarding composite returns and withholding.

Different states have different approaches to filing and withholding requirements when a resident S corporation has nonresident shareholders. While many states require composite returns, some states, such as Georgia, require all nonresident shareholders to consent to pay Georgia tax and require the corporation to file as a C corporation absent that consent.

Tax advisers must be fully aware of the filing and withholding issues that arise when an S corporation has a nonresident shareholder.

In addition to the overall lack of conformity between federal and state treatment of S corporations, there is divergence among various states on the recognition of QSSS. Several states do not recognize the QSSS, and tax advisers must understand the impact of nonrecognition.

Listen as our experienced panel provides a detailed exploration into the issues and opportunities related to the multistate taxation of S corporations.

Outline

  1. Current landscape of state treatment of S corporations
    1. States with full conformity with federal S-election
    2. States with partial conformity with federal S-election
    3. States with intentional nonconformity with federal S-election
  2. S corporations with nonresident shareholders
  3. Pass-through entity elections for S corporations
  4. Apportionment and allocation questions
  5. Taxation of nonresident shareholders
  6. Composite return requirements

Benefits

The panel will review these and other key issues:

  • What are the current state-by-state mechanics for nonresident S corporations?
  • What are the composite return and consent rules in the case of S corporations with nonresident shareholders?
  • What are the major state trends for QSSS recognition?
  • What calculations, adjustments, and schedules need to be maintained in the case of multistate filings where one state does not recognize S corporation status?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Differentiate the various state tax treatments of S corporations
  • Determine state tax treatment of QSubs and QSSSs
  • Recognize the rules for composite returns and the consent requirements for nonresident shareholders
  • Identify the tax treatment of nonresident shareholders
  • Ascertain the business vs. nonbusiness income treatment of IRC 338(h)(10) gain

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules for S-Corps and other pass-through entities; supervisory authority over other preparers/accountants. Knowledge and understanding of federal S Corporation election rules; familiarity with various state rules on nonresident shareholder reporting and withholding requirements, familiarity with composite return filings.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).