Most review techniques developed by professionals are self-taught and fine-tuned via experience. Yet how does one start? The purpose of this course is to give both new and seasoned reviewers additional and advanced procedures via a multitude of checklists to more thoroughly review S corporation and partnership tax returns. Its emphasis is not planning; rather, it is to develop a strategy to properly review a return effectively and thoroughly. The course includes dozens of ?practice tips for new reviewers? and is updated for impacts of newly enacted legislation.
Learning Objectives
- Expand the process involved in reviewing applicable tax returns
- Identify the most common areas that result in errors
- Document a review, including consideration of risk management
Major Topics
- Reviews of portions of error-prone “staff-prepared” Forms 1120-S and 1065 from client-provided information
- What are common errors preparers make and what are the areas generating malpractice claims?
- Initial administrative groundwork
- The importance of Schedule M-1. Learn how various schedules are related and learn how to self-review
- Reporting requirements and filing exceptions for Schedules K-2 and K-3
- Don’t fall prey to reporting oddities
- When can seemingly separately stated Schedule K items actually be trade or business items to report on Forms 1120-S or 1065?
- Form 1120-S – What exactly is terminating S elections today? How do I recognize a second class of stock? Maintaining shareholder basis schedules; beware of final IRS regulations regarding “open debt”; the default method of calculating basis versus the election under §1367; can an S corporation distribute earnings and profits from C corporation years?
- Form 1065 – New tax reporting requirement for partners’ capital balances
- Why use §704(b) to maintain capital accounts; §704(c) regulations for preventing the shifting of tax consequences among partners or members; allocating recourse, nonrecourse, and qualified nonrecourse debt; a review of §754 step-up in basis rules
- Multiple checklists of efficient procedures to identify potential issues on an 1120-S or 1065 tax return
- Major provisions of HR 1, One Big Beautiful Bill Act (OBBBA), relevant to course material have been included throughout
