Hands-On Tax Return Workshop –
S Corporations (Form 1120S)
Overview
This case-driven training is designed to get the inexperienced accountant up to speed quickly in the most common areas of S-corporation taxation. The cornerstone of this course is the preparation of the Form 1120S using a fairly complex trial balance common to most S corporation income tax returns.
Learning Objectives
Once participants have completed this session, they should be able to:
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Prepare a complete Form 1120S income tax return and related schedules with minimal review points
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Understand the S corporation income tax law from a tax-form perspective and become more knowledgeable with the information gathering process (i.e. asking the right questions)
Course Highlights
This session is taught using a Hands-On methodology. Using a comprehensive trial balance, the participant will walk through the steps to prepare a complete and accurate Form 1120S (and related schedules). 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:
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Extensive review of the S corporation income tax laws with an emphasis on any new legislative
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Schedule K analysis– determine if income statement items are separately (i.e. schedule K) or non-separately stated income and expense items
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Discuss how schedule K items get allocated to shareholders on their schedule K-1s
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Look at detailed Schedule K-1 information reporting to shareholders needed for the qualified business income (QBI) deduction, 3.8% net investment income tax and business interest expense limitations
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Talk about the unreasonably low officer compensation issues
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Learn the special tax treatment of fringe benefits paid to 2% shareholders and family members
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Schedule M-1 – calculate the reconciliation of income or loss per books with income or loss per income tax return
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Schedule M-2 – detailed step-by-step calculation of the AAA, PTI, E&P and OAA accounts
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Basic overview of the tax treatment of distributions including when a S corporation has prior C corporation earnings and profits (E&P)
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Review the importance and basics of calculating a shareholder’s stock and debt basis
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Basic overview of the potential S corporation built in gains tax from the conversion of a C to S corporatio
Who Should Attend?
Tax return preparers, staff accountants, and paraprofessionals with little or no experience and out of practice public accountants seeking a basic tax return preparation course.
Area of Study
Taxes
Level
Basic
Credit Hours
8 hours
Prerequisite
None
Type of Class
Group Live or Internet Based