C Corporation Update: Developments You Need to Know

Author: Greg White

Latest Developments for C Corp Clients and Impact of the Tax Cuts and Jobs Act
It’s been a busy year for C corporations in terms of tax developments and possible ways to save on taxes. IN this program led by experienced practitioner and instructor Greg White, CPA, we’ll cover important new cases and planning strategies, including developments in reorganizations, applying the new, lower C corporation tax rates to fiscal year taxpayers, and developments in the reasonable compensation area. What does a recent case have to say about the application of the “hobby loss” rules to C corporations? We’ll also discuss the Tax Cuts and Jobs Act: Under the new tax law, is it better to pay compensation to shareholders, or is it better to pay dividends? We’ll also cover application of the accumulated earnings and personal holding company taxes. They’re back, and you need to understand them!

Publication Date: February 2019

Topics Covered

• Corporate Tax Rates
• Sequestration
• Fiscal C Corps Blended Rates
• Change in Built‐In‐Gains Rate
• Should you switch from S to C?
• High IRS Interest Rates
• Dividends Received Deduction
• IRS Audit Rates
• Personal Holding Company Tax
• §6672
• Income Acceleration- Audited Financials
• Accrual Method- Advance Payments
• Bonus Depreciation
• Net Operating Losses
• Qualified Transportation Benefits, Athletic Facilities
• Reserved Parking- Notice 2018‐99
• Exception- Parking Predominately Provided to Public
• Entertainment Deductions
• Food and Beverages
• Reorganizations
• Other Provisions

Learning Objectives

• Calculate the proper tax liabilities for fiscal year C corporations
• Differentiate whether paying a shareholder compensation or dividends result in a lower tax burden
• Recognize the impact of the "hobby loss" rules to C corporations
• Identify more about the accumulated earnings and personal holding company taxes. They've taken on a new significance
• Recognize where to find guidance regarding the required change in tax accounting methods when converting from an S corporation to a C corporation
• Differentiate sections of the Internal Revenue Code and how they apply
• Identify tax rates and due dates
• Recognize when a taxpayer would file Form 3115

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of C corporations.

Advance Preparation
None