Mastering Multistate Taxation of S Corporations CPE

by | Nov 26, 2024 | Events, State and Local, Tax News | 0 comments

Join Stacey Roberts and Meredith Smith as they provide tax preparers and advisers with guidance on issues facing multistate taxation of S corporations in this 2-credit CPE class for Strafford.

Mastering Multistate Taxation of S Corporations

Online Only | 2.0 Credits

Friday, December 6, 2024 | 11:00 AM – 12:50 PM MT

Register

In this course, Stacey Roberts and Meredith Smith will provide tax preparers and advisers with detailed guidance on the most pervasive issues facing multistate taxation of S corporations. The panel will detail those states that vary from automatic acceptance of the federal S-election, review the composite return requirements, and discuss calculations, adjustments, and filing requirements for those states where the S-election fails and a composite return is not available. The panel will also outline state variances in tax treatments of qualified subchapter S subsidiaries (QSSS) and pass-through entity (PTE) elections for multistate S corporations.

Description

Multistate taxation of S corporations presents significant challenges to tax preparers and advisers. Not all states follow the federal S-election tax guidelines, and some states do not recognize S corporations as PTEs in all circumstances.

In addition to the lack of conformity in filing requirements and status, various states have different treatments of nonresident shareholders and differing rules regarding composite returns and withholding.

Different states have different approaches to filing and withholding requirements when a resident S corporation has nonresident shareholders. While many states require composite returns, some states, such as Georgia, require all nonresident shareholders to consent to pay Georgia tax and require the corporation to file as a C corporation absent that consent.

Tax advisers must be fully aware of the filing and withholding issues that arise when an S corporation has a nonresident shareholder.

In addition to the overall lack of conformity between federal and state treatment of S corporations, there is divergence among various states on the recognition of QSSS. Several states do not recognize the QSSS, and tax advisers must understand the impact of nonrecognition.

Listen as our experienced panel provides a detailed exploration into the issues and opportunities related to the multistate taxation of S corporations.

Outline

  1. Current landscape of state treatment of S corporations
  2. S corporations with nonresident shareholders
  3. Pass-through entity elections for S corporations
  4. Apportionment and allocation questions
  5. Taxation of nonresident shareholders
  6. Composite return requirements

Benefits

The panel will review these and other key issues:

  • What are the current state-by-state mechanics for nonresident S corporations?
  • What are the composite return and consent rules in the case of S corporations with nonresident shareholders?
  • What are the major state trends for QSSS recognition?
  • What calculations, adjustments, and schedules need to be maintained in the case of multistate filings where one state does not recognize S corporation status?

Instructors:

Stacey Roberts, CPA
Director, State and Local Tax
TaxOps

Stacey Roberts, CPA, is State and Local Tax Director at TaxOps in Denver. She works closely with business clients managing all compliance issues related to state income/franchise and sales and use tax for flow through entities and C corporations across various industries; identifying planning opportunities and state and local credits and incentives; and mitigating state and local tax controversy issues with auditors and taxing jurisdictions. Her 25 years of experience in state and local tax also includes three of the Big Four accounting firms and a Fortune 500 company. She is a member of the Colorado Legislative Tax Policy Task Force through 2026 and a frequent speaker and author on SALT issues including the Journal of State Taxation, Strafford Publishing, and more.

Meredith Smith, CPA
Senior Manager, State and Local Tax
TaxOps

Meredith Smith, CPA, is State and Local Tax Director at TaxOps in Denver. She works closely with business clients managing all compliance issues related to state income/franchise and sales and use tax for flow through entities and C corporations across various industries; identifying planning opportunities and state and local credits and incentives; and mitigating state and local tax controversy issues with auditors and taxing jurisdictions. Her 25 years of experience in state and local tax also includes three of the Big Four accounting firms and a Fortune 500 company. She is a member of the Colorado Legislative Tax Policy Task Force through 2026 and a frequent speaker and author on SA

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