Accruing taxes for cash basis C-Corp?

[Maccountant]

To all the fellow accountants out there, I was wondering, do you accrue taxes owed at the end of the year for a cash basis corporation? The company started in 2021 and I am working with the owner to elect S-corp status. Their coming around to the idea.
 
In the meantime, I was wondering, what do you usually do in these circumstances?

[SeattleCPA]

I doubt you can legitimately ask for late filing relief if the owners are only "coming around" to the S corp idea for 2021.

For one thing, they needed to have paid themselves reasonable compensation by end of year. And both the 941 and W-2 filing deadlines have already passed.

If they'd done that come on time however, you could probably accrue some of the payroll taxes as a cash basis taxpayer even if you hadn't remitted them yet.

BTW, your W-2 wages are too late to create an 199A benefit.

This sounds to me like you make 2022 first year of S corp status. Clients don't get to have their cake and eat it too.

[Maccountant]

Agreed, they are too far along to elect S-Corp for 2021.

In 2021 the corporation will show a small profit, I was wondering if the corporate income tax due on the profit could/should be accrued even though they are cash basis?

[SeattleCPA]

Agreed, they are too far along to elect S-Corp for 2021.

In 2021 the corporation will show a small profit, I was wondering if the corporate income tax due on the profit could/should be accrued even though they are cash basis?

No, not if they're a cash basis taxpayer.

BTW, just in case you're a CPA, you should know there are small firm and solo practitioner CPA forums on facebook and linked in where you'll encounter large, active communities of CPAs. Also same thing for EA and unenrolled preparers. Those might be a better place to ask questions like this.