Terms of Service & Tax Disclaimer

Effective Date: October 23, 2026

Certified Tax, Accounting & Legal Disclaimer (IRS Notice): The calculations, models, and projections provided by SCorpShield are engineered solely for preliminary educational, hypothetical, and informational purposes. SCorpShield is not a certified public accounting firm, law firm, or enrolled tax agency. The outputs generated by our software do not constitute formal legal, accounting, tax, or investment advice. Always retain a licensed Certified Public Accountant (CPA), Enrolled Agent (EA), or qualified tax attorney before making corporate tax elections (such as filing IRS Form 2553) or restructuring corporate payroll.

1. Permitted Informational Use

You are granted a revocable, non-exclusive, non-transferable license to access and utilize the SCorpShield calculator tools solely for internal business planning and personal evaluation. Any unauthorized scraping, data harvesting, automated extraction, or reverse-engineering of our algorithmic calculation models without prior written consent is strictly prohibited.

2. Mathematical Models & Estimation Limits

While our algorithms reflect statutory 2026 federal tax thresholds (including the $176,500 Social Security wage cap and standard 15.3% FICA rates), individual tax liabilities are shaped by multifaceted tax factors that no general tool can capture completely. These include personal filing status, itemized deductions, Qualified Business Income (QBI) deductions under Section 199A, state franchise nexus taxes, passive income rules, and corporate health insurance deductibility. SCorpShield makes no representation or warranty regarding the definitive financial outcome of any filing.

3. IRS Circular 230 Disclosure

In accordance with IRS Circular 230 guidelines, any tax information or estimates contained within this website or generated by its computational utilities are not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code, or promoting, marketing, or recommending to another party any transaction or matter addressed herein.

4. Reasonable Compensation & Audit Responsibility

Under IRS Revenue Ruling 74-44 and related federal court decisions, an S-Corporation shareholder who provides substantial services must receive reasonable W-2 compensation before receiving distributions. The determination of "reasonable salary" is inherently subjective and depends on specialized occupational factors, geographic prevailing wages, capital investment, and business hours. The user and their advising CPA bear sole responsibility for establishing, documenting, and defending reasonable compensation figures in the event of an IRS or state audit.

5. State and Local Tax Considerations

State tax rules regarding S-Corporations differ substantially across jurisdictions. Certain states (including California, New York City, Tennessee, and Texas) levy entity-level franchise taxes, net worth taxes, or minimum annual fees regardless of whether the federal government recognizes pass-through status. Users are advised to verify state-specific filing mandates with local revenue authorities.

6. Limitation of Liability & Indemnification

To the maximum extent permitted by applicable law, SCorpShield, its creators, contributors, and affiliates disclaim all liability for any direct, indirect, incidental, consequential, special, or exemplary damages—including but not limited to lost profits, back taxes, audit penalties, interest assessments, or operational interruptions—arising out of or in connection with your reliance on the tools, calculators, or text provided on this website.

7. Inquiries & Editorial Contact

For questions regarding these Terms of Service or our methodological documentation, please contact our editorial and administrative team via email at support@scorptaxcalculator.site.