I have formed an S corp, how does IRS know your business is a stock trading business? Any form to fill out during tax return? Thanks.
No. TTS is not a requirement for an entity or an individual to report capital gains and losses per the appropriate forms. For an entity to qualify for TTS, trading account(s) must be titled in the name of the entity, and the activities of the account and the entity operations must meet the TTS qualifications. Entities and individuals are separate taxpayers. A qualified TTS individual employed by an entity, does not equate to the entity being TTS qualified.