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CPA Tax Planning and the PSC

If your organization meets all of the following requirements, it can be considered a personal service corporation (PSC).  Frazer, Evangelista & Company offers CPA tax planning to PSCs and other types of organizations. Please call one of our offices to make arrangements to discuss the goals you have for your organization and how we can help implement the right approach to best meet them.
The following requirements are met by PSCs (from IRS pub. 542):

• Its primary activity during the testing period—generally this is considered the prior tax year—is to perform personal services. Personal services are one of three main economy sectors. The primary sector provides raw materials, as with mining or agriculture. The second sector is manufacturing; raw materials are processed. The tertiary sector is the service sector, where people offer their knowledge and time and the main end product is service. Transport, distribution, sales, legal services, consulting, tourism, real estate, banking, education, waste disposal, public health, government, franchising and more.
• The employee-owners perform most of the services. A person is an employee-owner if they are an employee or perform personal services on behalf of the corporation, and they own company stock at any time during the testing period.
• The employee-owners own more than 10% of the value of outstanding stock on the last day of the testing period

Call your Local NJ CPA

Contact us when you would like to learn more about how we work and how we can serve your organization. Whether you’re a PSC, you provide raw goods, or your company is involved in manufacturing, our CPA tax planning, management advisory and accounting services are available to you. We’re NJ CPA professionals operating in two locations for your convenience. We bring decades of broad accounting and tax planning experience to every client.

Additional Information:
Certified Tax Accountants
New Jersey Estate Tax