Lydia O’Neal, of Bloomberg Tax & Accounting, has made available for download her article, “Former S Corporations Get Final Rules for Change in Structure,” published in the Daily Tax Report. The abstract is as followed:
The IRS released final rules for S corporations that became C corporations following enactment of the 2017 tax law, which significantly cut the tax rate for the latter entity type.
The agency released the rules (RIN: 1545-BP20) on Tuesday.
The law added to the tax code Section 1371(f), which extends the period in which money distributed to shareholders of an S corporation following its transition to C corporation status can avoid tax. In November 2019, the IRS proposed (REG-131071-18) amending existing rules requirements for favorable tax treatment of those distributions.
To see the full article, click: “Former S Corporations Get Final Rules for Change in Structure” by Lydia O’Neal.
Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.