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 legislative changes Form 1120S (and related schedules) 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