Wednesday, April 26, 2017

S Corporations Statistic Analysis of Tax Year 2004

S Corporation is generally a small business with limited number and type of shareholders. S Corporation’s profit or loss is passed through to its shareholders.  Shareholders of S Corporation report their business profit or loss on their tax returns.

This thesis is a cross-sectional study of S Corporations revenue and U.S. real GDP of Tax Year 2004. It is a partial part of another working thesis: “S Corporations Revenue is a Driving Force for U.S. GDP Over time: Small but Mighty.”
The real GDP statistic data of Tax Year 2004 was collected from the Bureau of Economic Analysis, U.S. Department of Commerce’s reports and Interactive Data application. The S Corporations tax statistic data of tax year 2004 was collected from the Statistic of Income’s publications of the Internal Revenue Service, U.S. Department of Treasury.

The IRS SOI’s sample design is a probability sampling category and a stratified sampling method was used for sample selection. Form 1120S was stratified by size of total assets and size of ordinary income. Samples were selected from each stratum independently with sampling rates ranging from 0.25 percent to 100 percent. 

The target population consists of all returns of active S Corporations that filed the form 1120S to IRS of tax year 2004.

The researcher compiled statistic data based on SOI’s sample design and used the quantitative analysis to find the results of this study.

Sample selection for the Tax Year 2004 occurred over the period of July 2004 through June 2006 to account for the S Corporations who use non-calendar year accounting period and who file a six-month extension.

The stratified probability samples of 50,094 S Corporation returns were selected from the total population of 3,697,272. The sample accounted for about 1.35 percent of the total population.

This study shows that the U.S. real GDP is 12,274.9 billion dollars (12,274,900,000 thousand dollars). The S Corporation revenue is 4737.162166 billion dollars (4,737,162,166 thousand dollars).

These are the top four industry sectors based on total net income; Wholesale and retail trade; Manufacturing; Construction; and Professional, scientific, and technical services.
Total Net Income TY 2004

These are the top four industry sectors based on advertising expense per their revenue; Accommodation and food ;  Arts, entertainment, and recreation; Educational services; Real estate and rental and leasing.
Advertising per Revenue TY 2004
This study concludes that for Tax Year 2004, S Corporations revenue accounted for 38.59 percent of the U.S. real GDP. The small businesses are the driving force for U.S. GDP for Tax Year 2004.

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