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

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

Price: $1,795.00

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GNM's 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, it will pass through suspended investment expense treatment to owners. We can only do health and retirement plan benefits if the S-Corp is eligible for TTS.
    • 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.
    • There would be complicated accounting for wash sale loss adjustments or Section 475 MTM accounting if you traded securities. Consider our trade accounting service in conjunction with our tax compliance service.
    • A timely-filed Section 475 MTM election by a new S-Corp was due within 75 days of inception. We provided the 475 election resolution in our entity formation service. 
    • Tax treatment for traders can be confusing, and we get it right, taking advantage of losses where possible and 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.
    • The 20% deduction on qualified business income: QBI includes 475 income net of TTS expenses; it excludes capital gains.
    • 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.
    • Consider the SALT cap workaround strategy to pay state taxes on the entity level before year-end. 
    • For more information, visit the tax compliance service area of our Website.

    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. Or choose the Solo 401(k) Roth elective deferral forgoing a deduction in exchange for permanent tax-free growth. You can fund the Solo 401(k) 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 early November to do this year-end planning in a manner that maximizes tax benefits.

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. Would you please read Price & Billing Policies for more information?

If you have any questions, please get in touch with us.

Thank you for trusting our firm to help you.

Sincerely,
Darren L. Neuschwander, CPA
Adam W. Manning, CPA
Managing Members, Green, Neuschwander & Manning, LLC