Webcast
S Corporations: S Corporations and Shareholder Relationships
Learn how shareholder relationships drive S corporation tax outcomes—basis, distribution character, reasonable compensation exposure, and common related-party transactions that can trigger avoidable tax and payroll issues.
$49.00
Webcasts are available for viewing Monday – Friday, 8am – 8pm ET,
and Saturday & Sunday, 10am – 6pm ET.
Without FlexCast, you must start with enough time to finish. (1 Hr/Credit)
 Secure Transaction CPE Credits
1 Credits: Taxes
Course Level
Overview
Format
Webcast
Course Description
Shareholder transactions are where S corporations most often go sideways—especially when distributions, compensation, and related-party deals blur together. In this CPE webcast, Robert Jamison walks through how shareholder stock and debt basis governs whether distributions are tax-free, basis-reducing, or taxable, including what happens when distributions exceed basis and trigger gain recognition.
You’ll also get practical guidance on the “relationship” side of the S corporation: how retained earnings tax accounts (AAA, AE&P, etc.) change distribution character, how the IRS reclassifies purported distributions as wages when compensation is unreasonably low (including the Watson line of cases), and how common back-and-forth transactions—renting property and making loans between shareholder and corporation—create planning opportunities and audit risk if misstructured.
Learning Objectives
After completing this course, you will be able to:
- Determine how shareholder stock basis impacts the tax treatment of S corporation distributions, including distributions in excess of basis.
- Apply post-1996 ordering concepts for basis adjustments when income, losses, and distributions interact during the year.
- Identify the major S corporation retained earnings tax accounts (e.g., AAA and AE&P) and explain how they affect the character of distributions.
- Evaluate reasonable compensation risk for shareholder-employees and recognize fact patterns where the IRS may recharacterize distributions as wages.
- Recognize tax considerations and compliance risks in common shareholder-to-corporation transactions, including property rentals and loans between the parties.
Course Specifics
WC1826466652
February 9, 2026
None
None
Compliance Information
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02775-26-O
IRS Federal Tax Law Credits: 1
CTEC Course Number: 2071-CE-02218
CTEC Federal Tax Law Credits: 1
CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.
CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at www.ctec.org.
Meet The Experts
Robert “Bob” W. Jamison, CPA, Ph.D., is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is the author of the 2022 edition of Essentials of Federal Income Taxation, published annually by CCH, a Wolters Kluwer business. Bob is a well-known author and speaker on S Corporations. He is curator of Wolters Kluwer Answerconnect Topic “S Corporations” and subtopics …
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