The Eiduk System™ S-Corp Quarterly Review Workpaper

Meeting Information

Client Name

Entity Name

EIN

Quarter

Meeting Date

Review Date

The Eiduk Pathway™ Client Journey

Systematic tax optimization through 7 strategic phases • 38+ strategies • Building wealth while reducing taxes

Foundation

6 Strategies

→

Core Deductions

7 Strategies

→

Retirement

10 Strategies

→

Credits

7 Strategies

→

Real Estate

8 Strategies

→

Acquisitions

11 Strategies

→

Exit & Wealth

10 Strategies

→

Charitable

11 Strategies

Current Phase

P1: Foundation

Strategies Active

0 / 70

Est. Annual Savings

Pathway Progress

Quarterly Compliance Scorecard

Compliance Score

Items Complete

0/10

YTD Tax Savings

Quarter

1. Client Snapshot

Primary Contact

Phone

State

Tax Year End

Accounting Method

2. Prior Quarter Action Items - Follow Up ▼

✓	Action Item	Due Date	Responsible	Current Status/Notes

3. Quarterly Compliance Checklist ▼

Complete this section at the beginning of each quarterly review to ensure core S-Corp compliance.

Compliance Item	Status	Notes / Issues
Payroll Processing & Deposits W-2 wages paid timely, 941 deposits current, no late penalties
Estimated Tax Payments Federal & state quarterly estimates paid on time
S-Corp Election Status No changes to shareholders, stock class, or eligibility requirements
Corporate Formalities Separate bank accounts maintained, no commingling of funds
State Compliance State registrations current, annual reports filed, franchise taxes paid
Books & Records Accounting records current, reconciliations complete, backup maintained

4. Reasonable Compensation Summary ▼

Document reasonable compensation determination. Full analysis maintained in RC Reports.

Current W-2 Salary

RC Reports Benchmark

YTD Distributions

Est. SE Tax Savings

RC Reports Date

Next Review Due

Compensation Notes / Adjustments Needed

5. Shareholder Distribution Tracking (IRC §1368) ▼

Track quarterly distributions to shareholders. Verify distributions do not exceed shareholder basis.

Shareholder	Q1	Q2	Q3	Q4	YTD Total	Notes



TOTAL

Important: Distributions are tax-free only to the extent of shareholder basis. Distributions exceeding basis are taxable as capital gains (IRC §1368). Maintain separate basis calculation worksheet for each shareholder.

6. Related Party Transaction Documentation ▼

Date	Type	Amount	Business Purpose & Documentation

7. Estimated Tax Payment Tracking (IRC §6654) ▼

Quarter	Federal				State
Quarter	Required	Paid	Date	Conf #	Required	Paid	Date	Conf #
Q1 (4/15)
Q2 (6/15)
Q3 (9/15)
Q4 (1/15)
TOTAL

8. Pass-Through Entity Tax (PTET) Election Tracker ▼

Track PTET elections and payments for applicable states. Elections typically due by original return due date.

State	Election Made?	Election Date	Payment Due	Amount Paid	Date Paid	Notes

Common PTET Deadlines: IL - Original due date | CA - Original due date, $1K min/owner | NY - March 15 election, quarterly payments | Check state-specific rules for estimated payment requirements.

9. Phase 1: Foundation Strategies ▼

These 6 foundation strategies form the basis of S-Corp tax optimization. Implement and maintain quarterly.

Target Savings: $8k-$20k | Strategies #1-6 (6 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#1: Reasonable Compensation IRC §3121(a)					Salary comparison study Job description documented Payroll records current
#2: S-Corp Health Insurance IRC §162(l)					Premiums paid by S-Corp W-2 Box 1 includes premium >2% owner verification
#3: Accountable Plan IRC §62(a)(2)(A)					Written plan on file Business connection proven 60-day substantiation
#4: Augusta Rule IRC §280A(g)					Board resolution on file Fair rental rate documented Meeting minutes/agendas
#5: Asset Reimbursement IRC §162, §274					Asset use agreement FMV rental rate documented Business use percentage
#6: Hiring Kids IRC §73, §3121(b)(3)(A)					Job description documented Time records maintained Reasonable wage analysis

10. Phase 2: Core Deductions Strategies ▼

Core business deductions with proper documentation. Review equipment purchases and timing strategies quarterly.

Target Savings: $5k-$25k | Strategies #7-13 (7 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#7: Section 179 Election IRC §179					2025 limit: $1,250,000 Placed in service by 12/31 Business use >50%
#8: Bonus Depreciation IRC §168(k)					100% bonus (post-OBBBA) Qualified property identified Opt-out election if needed
#9: Home Office Deduction IRC §280A(c)					Exclusive use documented Square footage calculated Photos on file
#10: Vehicle Strategy IRC §162, §274					Mileage log maintained Business % calculated 2025 rate: $0.70/mile
#11: QBI Optimization IRC §199A					W-2 wage limitation calc SSTB classification review Phase-in/out analysis
#12: Timing Strategies IRC §461, §451					Income deferral analysis Expense acceleration review Year-end planning complete
#13: Inventory Method Optimization IRC §263A, §472					LIFO/FIFO analysis Form 3115 if changing UNICAP review

11. Phase 3: Retirement & Benefits Strategies ▼

Maximize tax-advantaged retirement savings. Review contribution limits and strategy mix each quarter.

Target Savings: $10k-$150k+ | Strategies #14-23 (10 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#14: Solo 401(k) IRC §401(k), §402(g)					Plan document adopted Employee + employer contribs 2025 limit: $70,000 + catch-up
#15: Profit Sharing 401(k) IRC §401(a)(3)					Profit sharing formula set Contribution calculation Discrimination testing
#16: Cash Balance Plan IRC §401(a), §415					Actuarial study completed Annual funding requirement 2025 limit: up to $280,000+
#17: Mega Backdoor Roth IRC §402(c), §401(k)					Plan allows after-tax contrib In-plan Roth conversion setup 2025 limit: $70k total cap
#18: HSA Triple Tax IRC §223					HDHP coverage verified Investment strategy set 2025 limit: $4,300/$8,550
#19: Backdoor Roth IRA IRC §408A, §408(d)(2)					Non-deductible IRA contrib Form 8606 filed Pro-rata rule considered
#20: Roth Conversions IRC §408A(d)(3)					Tax bracket analysis Conversion strategy timeline Tax payment planning
#21: Self-Directed Accounts IRC §408, §4975					Custodian established Prohibited transaction review UBIT considerations
#22: QSEHRA/HRA IRC §9831(d), §105					Plan document current Eligibility verified (<50 FTEs) Notice requirements met
#23: Section 412(e)(3) DB Plan IRC §412(e)(3)					Insurance contracts in place Actuarial funding analysis Form 5500 filed

12. Phase 4: Credits & Multistate Strategies ▼

Tax credits and multistate optimization. Evaluate applicability and maintain documentation.

Target Savings: $8k-$50k | Strategies #24-30 (7 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#24: R&D Tax Credit IRC §41					4-part test documentation Qualified research expenses Form 6765 preparation
#25: WOTC IRC §51					Form 8850 filed (28 days) Target group certification Wage/hour documentation
#26: PTET Election State-Specific					State election filed Estimated payments made SALT cap workaround calc
#27: State Tax Planning Varies by State					Nexus analysis complete Apportionment review Credit/incentive evaluation
#28: Energy Credits IRC §30D, §45L, §179D					Clean vehicle qualification Energy efficiency docs Credit calculation
#29: IC-DISC IRC §991-997					IC-DISC corporation formed Commission agreement Export revenue tracked
#30: Historic Rehabilitation Credits IRC §47					NPS Part 1/2/3 certification QRE documentation Form 3468 preparation

13. Phase 5: Real Estate & PAL Strategies ▼

Real estate strategies and passive activity optimization. Requires specific documentation and elections.

Target Savings: $30k-$150k+ | Strategies #31-38 (8 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#31: RE Professional Status IRC §469(c)(7)					750+ hours documented Material participation log >50% of services in RE
#32: Cost Segregation Study IRC §168, Rev Proc 87-56					Engineering study complete Component breakdown Catch-up depreciation calc
#33: STR Loophole IRC §469, Reg 1.469-1T(e)(3)					Average stay ≤7 days Material participation met Non-passive treatment docs
#34: Self-Rental Loophole Reg 1.469-2(f)(6)					Lease agreement on file FMV rental rate Recharacterization election
#35: 1031 Exchange IRC §1031					QI engaged before sale 45-day ID requirement 180-day closing deadline
#36: PAL Grouping Election IRC §469, Reg 1.469-4					Grouping statement filed Economic unit analysis Material participation log
#37: Syndication Loophole IRC §469(c)(7)(B)					RE Pro status verified Grouping election filed K-1 loss allocation
#38: PIGs vs PALs Matching IRC §469(d), Reg 1.469-2					Suspended PAL inventory PIG sources identified Matching strategy documented

14. Phase 6: Acquisitions & Leverage Strategies ▼

Strategic asset purchases for maximum tax benefits. Implement as opportunities arise.

Target Savings: $50k-$350k+ | Strategies #39-49 (11 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#39: Heavy Vehicle Strategy IRC §179, §168(k)					GVWR >6,000 lbs documented Business use >50% 2025 SUV limit: $31,300
#40: Oil & Gas Investments IRC §263(c), §613A					IDC deduction calculated Depletion allowance K-1 partnership analysis
#41: DST Investments IRC §1031, Rev Rul 2004-86					DST due diligence Passive income treatment 1031 replacement property
#42: Opportunity Zone IRC §1400Z-2					180-day investment window QOZ fund certification Form 8997 filed
#43: Equipment Acquisition IRC §179, §168(k), §465					Business purpose documented Placed in service date At-risk analysis (§465)
#44: Captive Insurance ⚠️ IRC §831(b), §162					Form 8886 disclosure filed Actuarial analysis Risk distribution documented
#45: Financed Business Insurance IRC §264, §163					Business purpose documented Premium financing agreement Interest deductibility reviewed
#46: Leveraged Technology Purchase IRC §163, §179, §168(k)					Software qualification §163(j) limitation review Financing structure
#47: Film & Media Investment IRC §181, §167(g)					§181 election filed 75% U.S. compensation test At-risk/passive analysis
#48: Software RTU Investment ⚠️ IRC §179, §168(k), §469					Material participation docs At-risk verification (§465) Form 8275 disclosure
#49: Leveraged Trading Partnership IRC §704(b), §465, §469					Independent tax opinion Lender independence verified DRO documented

15. Phase 7: Exit & Wealth Transfer Strategies ▼

Long-term wealth preservation and exit planning. Begin discussions 3-5 years before exit.

Target Savings: $50k-$500k+ | Strategies #50-59 (10 total)

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#50: QSBS Exclusion IRC §1202					C-Corp original issuance Gross assets ≤$50M 5+ year holding period
#51: Installment Sale IRC §453					Installment terms documented Interest rate (min AFR) Gain recognition schedule
#52: ESOP Exit IRC §1042					ESOP feasibility study Valuation completed 30%+ sale to ESOP
#53: CRT Strategy IRC §664					Trust document drafted Actuarial calculations Charitable deduction calc
#54: Family LP/LLC IRC §2704, Rev Rul 93-12					Operating agreement Valuation discount study Gift tax returns filed
#55: Stepped-Up Basis IRC §1014					Asset holding analysis Estate planning coordinated Basis documentation
#56: Dynasty Trust IRC §2601					Trust document drafted GST exemption allocated Trustee succession plan
#57: Deferred Sales Trust IRC §453, §1001					Independent trustee Installment note terms Economic substance analysis
#58: Buy-Sell Agreement Planning IRC §2703, §302					Buy-sell agreement drafted Valuation method documented Insurance funding in place
#59: Stock Redemption IRC §302, §318					§302(b) test analysis Attribution rules reviewed Capital vs dividend treatment

16. Phase 8: Charitable & Philanthropic Strategies ▼

Charitable planning strategies for clients with philanthropic intent. Available as project-based add-on for Premium clients with $2M+ net worth.

Target Savings: $55k-$350k+ | Strategies #60-70 (11 total) | Premium Add-On

Strategy & IRC Citation	Q1	Q2	Q3	Q4	Documentation Required	Annual Savings	Notes
#60: Donor Advised Fund IRC §170(f)(18)					DAF account established Contribution substantiation Bunching strategy planned
#61: Private Foundation IRC §501(c)(3), §4940-4945					Form 1023 filed Self-dealing rules reviewed 5% distribution met
#62: Supporting Organization IRC §509(a)(3)					Type I/II/III classification Supported org relationship Responsiveness test met
#63: CLAT IRC §170(f)(2)(B), §2055					Trust document drafted Annuity payout calculated Remainder interest analysis
#64: CLUT IRC §170(f)(2)(B)					Trust document drafted Unitrust % calculated Annual revaluation process
#65: Charitable Pooled Income Fund IRC §642(c)(5)					Charity pooled fund selected Income interest documented Remainder deduction calc
#66: Charitable LLC/Holding Company IRC §170, §721					LLC formation documents Interest donation documented Pre-sale valuation
#67: Qualified Charitable Distribution IRC §408(d)(8)					Age 70.5+ verified Direct IRA transfer Charity acknowledgment
#68: Charitable Bargain Sale IRC §1011(b)					FMV appraisal obtained Basis allocation calculated Sale/gift ratio documented
#69: Conservation Easement ⚠️ IRC §170(h)					Conservation purpose documented Qualified appraisal (Form 8283) Perpetual restriction
#70: Leveraged Charitable Giving IRC §170, §163(d)					Assets unencumbered Borrowing facility established §163(d) limitation reviewed

17. Investment Management Review ▼

Wealth management integration with tax strategy - Coordinates with P3 Retirement (#14-23) and P7 Exit (#50-59) strategies.

17.1 Account Summary by Tax Status

Account Type	Allocation %	Strategy Ref
PRE-TAX ACCOUNTS (Tax-Deferred)
Traditional IRA		P3 #17 Backdoor
401(k) / Solo 401(k)		P3 #12-13
SEP IRA		P3 #12
Cash Balance Plan		P3 #14
Pre-Tax Subtotal
TAX-FREE ACCOUNTS (Roth)
Roth IRA		P3 #17-18
Roth 401(k)		P3 #15 Mega
Tax-Free Subtotal
TAXABLE ACCOUNTS
Individual Brokerage
Joint Brokerage
Trust Account		P7 #44 Dynasty
Taxable Subtotal
TRIPLE TAX-FREE
HSA		P3 #16
TOTAL AUM	100%

16.2 Retirement Contributions - YTD

Account Type	2025 Limit	Strategy
401(k) Employee Deferral	$23,500	P3 #12
401(k) Employer/Profit Sharing	$46,500*	P3 #13
Cash Balance Plan		P3 #14
HSA		P3 #16
Backdoor Roth IRA	$7,000	P3 #17
Mega Backdoor Roth		P3 #15
Total Retirement Contributions	* $70,000 total 401(k) limit (2025) includes employee + employer

16.3 Tax-Aware Investment Review

✓	Strategy	Description / Action	Notes / Details
	Asset Location	Tax-inefficient assets (bonds, REITs) in tax-deferred; growth stocks in Roth; muni bonds in taxable
	Tax-Loss Harvesting	Harvest losses in taxable accounts to offset gains; watch 30-day wash sale rule
	Roth Conversion P3 #18	Convert traditional to Roth in low-income years; fill up lower brackets
	Qualified Dividends	Prefer qualified dividends (0%/15%/20% rate) over ordinary income in taxable
	Long-Term Gains P7 #43	Hold appreciated assets >1 year for LTCG rates; consider stepped-up basis
	Charitable Giving P7 #41	Donate appreciated stock directly; use DAF for bunching; consider CRT
	Rebalancing	Rebalance in tax-advantaged accounts first; use new contributions to rebalance taxable
	Beneficiary Review	Verify beneficiaries current on all accounts; coordinate with estate plan
	RMD Planning	Required Minimum Distributions strategy; inherited IRA rules; QCD opportunity
	NUA Strategy	Net Unrealized Appreciation for company stock in 401(k); LTCG treatment on appreciation

Investment Management Notes / Action Items

17. Year-End Tax Planning Checklist ▼

Review in Q3/Q4 meetings. Complete applicable items before December 31.

⚠️ Key Deadlines

• Dec 31: Equipment purchases, charitable contributions

• Dec 31: Retirement contributions (employer)

• Dec 31: Bonus decisions & year-end payroll

• Jan 15: Q4 estimated tax payment

✓	Year-End Action Item	Deadline	Notes / Status
	Income & Expense Review Compare YTD to projections, identify timing opportunities	November
	Bonus / Additional Salary Evaluate additional W-2 wages vs. distribution strategy	Dec 31
	Retirement Contributions Max out 401(k), profit sharing, cash balance plan	Dec 31 (employer)
	Equipment / Asset Purchases Section 179, bonus depreciation opportunities	Dec 31
	Expense Prepayment Prepay rent, insurance, supplies (if cash basis)	Dec 31
	Charitable Contributions DAF funding, QCDs, direct donations	Dec 31
	Final Distributions Verify within basis, document properly	Dec 31
	Annual Mileage Summary Compile logs, record ending odometer	Dec 31
	Accountable Plan Reimbursements Submit all outstanding expense reports	Dec 31
	Q4 Estimated Tax Review Adjust final payment based on YTD results	Jan 15

Year-End Planning Notes / Additional Items

18. New Action Items for Next Quarter ▼

Action Item	Due Date	Responsible	Priority	Notes

19. Additional Discussion Points & Notes ▼

Tax Planning Opportunities Discussed

Business Updates & Changes

Compliance Concerns or Issues

Other Meeting Notes

Meeting Acknowledgment & Signatures

By signing below, we acknowledge that we have reviewed the above quarterly compliance items, discussed tax strategies, and agree to the action items outlined for the next quarter.

Client Signature

Advisor Signature

Prepared by:

Date Prepared:

Next Review Date:

This quarterly workpaper provides comprehensive S-Corp compliance documentation and tax strategy implementation tracking per the Eiduk Pathway™ 7-Phase Framework. Includes quarterly compliance checklist, prior quarter action item follow-up, shareholder basis and distribution tracking (IRC §1366, §1367, §1368), related party transaction documentation, estimated tax payment tracking (IRC §6654), and complete Phases 1-7 strategy implementation with 44 strategies. Review quarterly during client calls to maintain IRS audit defense documentation and ensure ongoing compliance. All documentation must be maintained in client file.