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  • 1.  corp tax

    Posted 08-24-2015 11:06 AM

    I'm reviewing a 2014 C Corp return of a possible new client and see adjustments to shareholders' equity on schedule L line 26. The supporting schedule shows "shareholder distributions". Is there any justification for this treatment?

     

     

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    Daniel Levine
    CPA
    DANIEL LEVINE, CPA PC
    Scottsdale AZ
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  • 2.  RE: corp tax

    Posted 08-25-2015 06:50 AM

    Dan,

    Was this business ever an S Corp?  That could explain shareholder distributions as during the time of being an S Corp there might have been profits which were not distributed - the shareholders would be entitled to that.  Also, you could check to see if 1099-DIVs were issued.  A C Corp can make distributions of profits, but those would be dividends

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    Neil Fishman CPA
    FISHMAN ASSOCIATES CPAs PA
    Boynton Beach FL
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    Original Message


  • 3.  RE: corp tax

    Posted 08-25-2015 11:26 AM

    Hi Neil,


    The corp stated in 2013 as a C and 1099-Div were not issued.


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    Daniel Levine
    CPA
    DANIEL LEVINE, CPA PC
    Scottsdale AZ
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    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.