In 2022, the Internal Revenue Service (IRS) released Revenue Procedure 2022 – 19 (Rev. Proc. 2022-19) to offer relief for businesses operating as S Corporations (S Corp) that have issues with their organizational documents. IRS guidance addresses six specific items that could potentially disqualify the status of an S Corp, with the most important of these items focused on a non-identical governing provision where distributions and liquidations are not always equal.

Barry Weins, Tax Director, joins this episode of the Tax Beat podcast with Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, to share more about Rev. Proc. 2022-19 and the benefits it brings to S Corps.

Listen in as our team covers:

• 2:22 – Background on S Corps
• 4:43 – Maintenance of S Corp qualification
• 5:50 – Common issues for S Corps dealing with IRS Relief
• 9:53 – Background on Revenue Procedure
• 13:16 – Key Points of Revenue Procedure
• 14:33 – Compliance with Revenue Procedure 
• 18:16 – Impacts on mergers and acquisitions involving S Corps
• 19:59 – Issues S Corps should be thinking about

Related Resources:

• R&D Tax Credits: 2022 Year in Review
• Tax Planning Opportunities For Executives with Incentive Stock Options Strategies
• IRS Crackdown on Incomplete Transfer Pricing Documentation