Over half of the nation’s taxpayers hire tax professionals to prepare their yearly returns. Tax preparers play a key role in assisting taxpayers with IRS inquiries. The IRS encourages this relationship. The Taxpayer First Act, passed in July 2019, aims to improve IRS communication with taxpayers. Commissioner Rettig underscored the importance of tax preparers in helping with this policy shift in his recent talk at the AICPAA National ax Conference: “It’s very important … to get highly engaged with us on this. This belongs to you. It belongs to your clients. It belongs to every person on the IRS workforce. And we want to get it right.”

Existing corporations that are eligible to elect to be treated as an S corporation need to file Form 2553, Election by a Small Business Corporation by March 15.  The income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself. In order to make the election, the entity needs to meets all of the eligibility requirements.