S-Corp Item Classifier
The core task of an S-Corp return is not just calculating profit, but correctly classifying every financial item. Misclassification can lead to shareholder errors and lost tax benefits. Use this tool to understand the proper treatment of common items.
Shareholder Basis Calculator
A shareholder's ability to deduct losses and receive tax-free distributions depends entirely on their stock basis. While tracking basis is the shareholder's duty, this tool simplifies the complex annual calculation.
IRS Notice Response Center
Receiving an IRS letter can be stressful. Use this tool to identify your notice, understand its urgency, and learn the critical first steps for a strategic response.
The Art of Penalty Abatement
Penalties are often negotiable. The right strategy can provide significant financial relief. See which option best fits your situation.
1. First-Time Abatement (FTA)
If you have a clean compliance history for the past three years, you can often get a "pass".
- ✓**How to request:** Often a simple phone call.
- ✓**Burden of proof:** None (IRS verifies your record).
- ✓**Key condition:** 3 years of clean compliance.
2. Reasonable Cause
For when circumstances beyond your control (illness, disaster, etc.) prevented you from complying.
- ✗**How to request:** Requires detailed written explanation and proof.
- ✗**Burden of proof:** High (medical records, court orders).
- ✗**Key condition:** Proving you exercised 'ordinary business care'.
Strategic Choice:
FTA is easy to use, but it may be a once-in-a-lifetime opportunity. If you have a strong 'Reasonable Cause' argument, it might be better to argue that first and save your FTA card for the future.
Advanced Strategy: The CSED Clock
The IRS generally has 10 years to collect a tax debt (the Collection Statute Expiration Date, or CSED). However, certain actions pause this clock. Understand the trade-offs before you act.
Click the buttons to see how each action can "toll" (pause) the 10-year clock: