IRS to study S corporation reporting compliance.

• Position: National

The IRS has launched a study to assess the reporting compliance of S corporations.

The study will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004.

S corporations are entities that have income and deductions that pass through the corporate structure to the shareholders. Since the mid-1980s, the number of S corporations has risen rapidly, growing from more than 724,000 in 1985 to more than 3 million in 2002.

S corporations are now the most common corporate entity. In 2002, the latest year...