Overview

This training course is designed to provide a comprehensive understanding of the Federal income tax laws applicable to S corporations and their shareholders. The cornerstone of this course is the integration of the most recent tax laws and theories to real world case scenarios and the preparation and/or review of the IRS tax forms and schedules.

Learning Objectives

Once participants have completed this session, they should be able to:

• Understand the Federal income tax laws applicable to S corporations and their shareholders from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation)

• Prepare a complete Form 1120S income tax return and related schedules with minimal review points

Course Highlights

This session is taught using a Hands-On methodology.  Real world examples and cases are used to demonstrate the complex income tax code and regulations to enhance the participants learning experience. Each participant will receive a comprehensive S corporation income tax reference manual that includes numerous practice aids, real world examples, new Federal income tax forms and schedules, and Pat Garverick’s Quick Reference Chart.  Topics include:

• Extensive review of the S corporation tax laws with an emphasis on any new legislation (i.e., The Big Beautiful Bill) including the expiration or extension of any TCJA provisions after 2025, changes to the Form 1120S (and related schedules) and preparation issues
• S corporation formation issues and liquidations
• Form 2553 S corporation elections and late IRS election procedures
• Schedule K and K-1 – preparation issues including separately and non-separately stated income and expense items (including the 20% qualified business income (QBI) deduction, 3.8% net investment income tax, business interest deduction limitations, fringe benefits and entertainment expenses)
• S corporation revocation and termination and allocation of income during short S and C corporation years
• Unreasonably low officer compensation issues
• Tax treatment of fringe benefits paid to 2% shareholders and family members
• Schedule D – built-in gains (BIG) tax computation and planning opportunities when converting from a C to S corporation
• Excess passive investment income tax issues
• Schedule M-2 – detailed step-by-step analysis of the AAA, PTI, E&P and OAA accounts and look at the tax treatment of distributions when the S corporation has prior C corporation earnings and profits (E&P)
• Overview of calculating a shareholder’s stock and debt basis and discuss how S corporation losses and deductions can be limited to basis and the at-risk rules