S Corp taxation might not be the most exciting topic, but here you are, reading up on the excess net passive income (ENPI) tax . So, let's cover this issue quickly and as painless as possible. If an S Corp was converted from a C Corp (and thus it has an AE&P account), you may potentially get into an unpleasant situation - additional tax (which stings!) on passive income. This is something the IRS checks on, especially if amounts are material. How can the IRS say that the S C

An S corporation can lose (in other words, terminate) its special tax status in three main ways: Too Much Passive Income : If an S...