S-Corp Tax Compliance (First-Year Trader Client) – Partial Payment & Minimum Price

Please only purchase this first-year tax compliance service if we invited you to.

Price: $1,795.00


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Update September 6, 2021

2021 taxes: We plan to accept new clients eligible for trader tax status or proprietary traders for our 2021 tax compliance service, so please check back with us after October 15, 2021. A few requirements:

  • Start the process with a 50-minute consultation in 2021, where we establish if you are eligible for TTS and benefit from our 2021 tax compliance service. We accomplish much more in this consultation, like whether a trading entity is good for you. A consultation earlier in 2021 counts.
  • Next, at your email request after October 15, 2021, we will schedule a “new client evaluation” (NCE) 15-minutes for $105. Darren Neuschwander CPA or Adam Manning CPA will look at your 2020 tax return and our above consultation memo. They will give you a quote estimate of our fees and an idea of the value you might receive from our tax compliance service. Finally, we hope to invite you to purchase our service. 

Our tax compliance service includes

  • Planning and preparation of your S-Corp federal and state tax returns.
  • Assessment of trader tax status (TTS): If the S-Corp qualifies for TTS, we can use business expense treatment on Form 1120S. TTS does not require an election, whereas Section 475 MTM does.
  • If the S-Corp is not eligible for TTS, then it will pass through suspended investment expense treatment to owners. The 2017 Tax Cuts and Jobs Act suspended investment expenses and all other miscellaneous itemized deductions for individuals.
  • In a tax return footnote, we explain trader tax law, how the S-Corp qualifies for TTS, tax elections like Sections 475 MTM, the tax treatment on financial products, and more. Avoiding IRS questions is vital.
  • If you traded securities, there is complicated accounting for wash sale loss adjustments or Section 475 MTM accounting, including a Section 481(a) adjustment for the first year of the election. Consider our trade accounting service in conjunction with our tax compliance service.
  • A timely-filed Section 475 MTM election by a new or existing S-Corp. An existing S-Corp must also file a Form 3115 (Change of Accounting Method).
  • Tax treatment for traders can be confusing, and we get it right, taking advantage of losses where possible and lower Section 1256 60/40 capital gains rates. Traders can depart from broker 1099-Bs where entitled, and we explain it in the tax return footnotes.
  • An S-Corp must use an accountable plan to reimburse business expenses to owners before year-end, including the home-office deduction.
  • 2017 Tax Cuts and Jobs Act: We maximize the 20% deduction on qualified business income in pass-through entities.
  • Arrange officer health insurance and retirement plan deductions in connection with officer compensation executed through year-end payroll.
  • Establish Solo 401(k) retirement plans before the year-end.

Special considerations

We recommend an S-Corp the most for a trading business (with trader tax status) since traders need S-Corp officer compensation to unlock employee benefit plan deductions, including health insurance and retirement plans.

Traders need to set up and execute payroll before the end of the year. Add health insurance premiums to the officer's Form W-2, and take the health insurance AGI-deduction on the individual tax return. If the trader wants a Solo 401(k) retirement plan, establish the plan before year-end, and add the 100%-deductible elective deferral to the W-2. You can fund the profit-sharing plan contribution until the due date of the S-Corp tax return, including the six-month extension, which means September 15th of the subsequent year.

There are significant tax benefits with an S-Corp, but traders need to handle year-end planning right. We suggest clients sign up for our service by November to do this year-end planning in a manner that maximizes tax benefits.

We will focus on the 2017 Tax Cuts and Jobs Act, especially the new 20% deduction on qualified business income (QBI) in pass-through entities. QBI might include Section 475 ordinary income, whereas the new law and regs exclude capital gains from QBI. There are income phase-outs for owners of service businesses, including a TTS trading company, and wage and property limitations for all types of pass-through entities. It's wise to do year-end tax planning to maximize the 20% QBI deduction, which owners deduct on their individual tax returns. (See How Traders Can Get 20% QBI Deduction Under IRS Proposed Regulations.)

After purchase, our administration team will follow up with you by email to commence the tax compliance process. See how our virtual process works efficiently.

Kindly expect a balance due on our fees when we complete the tax compliance engagement. Please read Price & Billing Policies for more information.

If you have any questions, please contact us.

Thank you for trusting our firm to help you. We've earned trust from traders since 1983.

Robert A. Green, CPA
Darren L. Neuschwander, CPA
Managing Members, Green, Neuschwander & Manning, LLC