Converting a C Corporation to an S Corporation: Potential Tax Implications

In recent years, the number of companies converting from C corporation status to S corporation status has increased dramatically. One of the main reasons is to avoid double taxation. C corporations are taxed at the corporate level for federal income tax purposes. Additionally, the C corporation shareholders are also taxed on any capital gains realized …

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Common 403(b) Plan Mistakes

The IRS issued the following listing of recurring mistakes noted in 403(b) plan audits: 1. Failure to be a qualified employer – Only public schools and certain tax-exempt charitable organizations qualify. 2. Failure to properly apply universal availability –This occurs when eligible employees are excluded from participation. 3. Failure to limit employee elective deferrals – The general limit …

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