Form 7203: How S-Corp Shareholders Track Stock and Debt Basis (And Why It Matters)
Form 7203 requires S-corp shareholders to prove stock and debt basis on Form 1040. Misapplied ordering rules or treating loan guarantees as basis can disallow
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Irs Requirements
Meet IRS requirements for business tax compliance
Reasonable Compensation for S-Corp Owners: How to Set Your Salary, Survive an Audit, and Avoid Six-Figure Penalties
A CPA paid himself $24,000 while taking $200,000 in S-Corp distributions, lost in the Eighth Circuit, and owed six figures in back payroll taxes and penalties. Here is how the IRS evaluates reasonable compensation, the audit red flags, and a defensible methodology for setting an S-Corp owner salary.
The 83(b) Election: A 30-Day Decision That Can Save Founders Six Figures in Taxes
A Section 83(b) election lets founders and early employees pay ordinary income tax on the grant-date value of restricted stock instead of on each vesting tranche, shifting future appreciation into long-term capital gains. The 30-day filing window is absolute and starts on the actual transfer date.
Stimulus Checks and Tax Debt: What Happens If You Owe the IRS
Direct stimulus payments were protected from IRS tax debt offsets, but Recovery Rebate Credits claimed on tax returns followed normal refund offset rules. Here's how owing back taxes affected each of the three rounds of economic impact payments and what options remain for resolving outstanding IRS balances.
Engaged in a Trade or Business: The IRS Test That Decides Your Tax Bill in 2026
The IRS uses a nine-factor test under Section 183 to decide whether your side income is a business or a hobby. After the OBBBA took effect in 2026, hobbyists report income in full but can deduct no expenses against it — making the classification more consequential than ever.
IRS Penalties Explained: Every Type, Rate, and Way to Get Relief in 2026
A 2026 guide to the six most common IRS penalties—their rates, calculations, and the three relief paths that can reduce or remove them, including the newly automatic First-Time Abatement.
Tax ID Numbers Explained: EIN, SSN, and ITIN for Small Business Owners
Compare EIN, SSN, and ITIN for your small business. Learn who needs which tax ID, how to apply free with the IRS, and avoid penalty-triggering mistakes.
IRS Tax Payment Plans: How to Set Up an Installment Agreement When You Can't Pay in Full
A practical guide to IRS installment agreements in 2026 — four plan types, setup fees ranging from $0 to $178, eligibility rules for balances up to $50,000, and the common mistakes that trigger default.
IRS Form 2210: How to Calculate and Avoid the Underpayment Penalty
How IRS Form 2210 works, when you must file it, the three safe harbors that prevent the underpayment penalty, and how Schedule AI reduces the bill for taxpayers with uneven income. Covers 2026 penalty rates (7% in Q1, 6% in Q2), due dates, and common mistakes.
S-Corp “Reasonable Salary”: A Practical Guide for Beancount Users (2025)
Understand the IRS requirements for S-Corp reasonable salaries and learn how to accurately track W-2 wages and owner distributions in your Beancount ledger.