S-Corporation Tax Preparation
S-Corporations offer powerful tax advantages — but only if filings are done correctly. From accurate Form 1120-S preparation to shareholder allocations, our CPA team helps you stay compliant, minimize tax burdens, and keep your S-Corporation in good standing with the IRS.
Why S-Corporation Tax Preparation Matters
S-Corporations are unique in that their profits and losses are passed through to shareholders, thereby avoiding double taxation. However, this also means mistakes in reporting, allocations, or shareholder distributions can create costly IRS issues. Late filings, misclassified expenses, or incorrect K-1s often result in penalties or disputes.
Our CPAs specialize in S-Corporation compliance. We handle the complexities of Form 1120-S, prepare accurate K-1s for each shareholder, and review compensation structures to ensure they meet IRS requirements. With the right guidance, your S-Corporation can operate smoothly and tax-efficiently year after year.
What's Included
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Federal S-Corporation Return (Form 1120-S)
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Schedule K-1 preparation for shareholders
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Shareholder basis and allocation review
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Guidance on reasonable compensation for owners
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Multi-state S-Corporation tax compliance
We Help With
Errors in preparing or filing Form 1120-S
Incorrect shareholder allocations or K-1 reporting
Confusion around reasonable shareholder compensation
Late or missed election filings for S-Corp status
Multi-state compliance issues for S-Corps operating across jurisdictions
Explore More Tax Preparation Services
S-Corporation filings are one part of a complete tax compliance framework. Explore related services in our Tax Preparation category:
- Individual Tax Preparation — accurate filings and maximized deductions
- Corporate Tax Preparation — compliance and efficiency for corporations
- Partnership Tax Preparation — clear, compliant filings with accurate K-1s
- Estate & Trust Tax Preparation — filings that protect assets and meet IRS requirements
- Expat Tax Preparation — simplified compliance for U.S. citizens abroad
- State & Local Tax (SALT) Preparation — expertise in multi-state and local filings
FAQs: S-Corporation Tax Preparation
A CPA helps you avoid overpaying taxes and build a strategy that supports your financial goals. Here’s what you need to know about tax filing, planning, and audit representation —whether you’re in New York or anywhere in the US.
What is Form 1120-S, and who must file it?
Form 1120-S is the federal income tax return for an S-Corporation. Every S-Corporation is required to file its annual return, reporting income, deductions, and credits, while also preparing Schedule K-1s for shareholders.
How are S-Corporation different from C-Corporation for tax purposes?
Unlike S-Corporations, which face double taxation (corporate tax and shareholder tax on dividends), S-Corporations are pass-through entities. Income flows directly to shareholders, who report it on their personal tax returns. This avoids double taxation but requires precise reporting.
What is “reasonable compensation,” and why does it matter?
The IRS requires S-Corporation owners who work in the business to pay themselves a reasonable salary before taking distributions. If compensation is too low, the IRS may reclassify distributions as wages, leading to back taxes, penalties, and interest.
What happens if an S-Corporation files late or makes mistakes on Form 1120-S?
Late filings or errors can result in penalties assessed per shareholder, which adds up quickly. Mistakes in K-1 allocations may also cause IRS notices for both the corporation and its shareholders. Timely, accurate filing is essential.
Can an S-Corporation lose its status?
Yes. An S-Corporation can lose its election if it violates IRS rules, such as exceeding the limit of 100 shareholders, allowing ineligible shareholders, or failing to maintain a single class of stock. Losing status means reverting to C-Corporation taxation, which can increase liabilities.
Does an S-Corporation need to file state tax returns as well?
Yes. Many states require separate S-Corporation filings, while others treat S-Corporations like C-Corporations for tax purposes. Multi-state compliance is especially important if your business operates across jurisdictions.
