Reviewing S Corporation Tax Returns: What Are You Missing?

Overview

You could pay $0 for this course!
This course qualifies for reimbursement through the State Workforce Training Express Fund. Firms/companies with fewer than 100 staff will receive 100% of the cost of training reimbursed. You must register for this course and apply for reimbursement through the Workforce Training Express Fund website a minimum of three weeks before the start date of the course to be eligible. The course code for this program is C-3355.  To learn more click here or contact Julia Ekelund at jekelund@mscpaonline.org.

The complexity of S corporation tax law creates a formidable challenge to the tax practitioner for accurate compliance and reporting of their client’s S corporation activities. Join us as we discuss the common errors practitioners make on S corporation tax returns that are often missed by review staff. The intent is to sharpen skills for reviewers by examining case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires additional analysis and information. Multiple issues will be discussed including income, deductions, K-1 reporting, and K-2 and K-3 reporting. This course follows a highly illustrative case study format to increase participant comprehension and retention.

Highlights

Common errors made involving the following tax forms: • Form 1120-S • Schedule K-1 • Schedule L • Schedules M-1 and M-2 • Form 4562 • Form 4797

Designed For

CPAs working with clients requiring expertise in S corporation taxation for the current tax season

Objectives

When you complete this course, you will be able to: • Identify common mistakes made on S corporation tax returns. • Determine strategies to avoid making mistakes on S corporation tax returns. - Determine how transfers to corporations in exchange for stock can be nontaxable under IRC Section 351. • Calculate the balance in an accumulated adjustments account and enter that calculation on Form 1120S, Schedule M-2. • Determine how capital gains and losses are disclosed on Form 1120S. • Identify and properly report cost recovery deductions on Form 1120S and the associated Schedule K-1s issued to shareholders. • Determine the tax consequences when a newly converted S corporation sells appreciated property it acquired while operating as a C corporation. • Determine the tax consequences associated with the distribution of appreciated property by an S corporation to a shareholder in redemption of stock.