Page 413 - Small Business IRS Training Guides

Tax Cuts and Jobs Act

Provision 13543

Modification of Treatment of S Corporation Conversions to C Corporation

Overview

Introduction

Provision 13543 of the Tax Cuts and Jobs Act (TCJA) modifies two areas of law involving conversions from S corporations

to C corporation. Section 481 addresses changes in methods of accounting and section 1371 addresses certain

distributions after the post-termination transition period (PTTP). The law, in part, provides some relief for certain
S corporations who choose to convert.

This lesson will explain the basic law changes and explain who is impacted. It will also direct you where to find additional
information.

Objectives

At the end of this lesson, you will be able to:

• Recognize the two sections of the code which were modified due to TCJA provision 13543.

• Identify C corporations that the rules apply.

• Determine where to find additional information.

73233-102 13543-1 Tax Cuts and Jobs Act