The complexity of S corporation tax law creates a formidable challenge for tax practitioners to accurately comply with and report their clients' S corporation activities. This course covers the common errors practitioners make on S corporation tax returns that review staff often miss. The intent is to sharpen reviewers' skills by examining four case studies and discussing issues in which additional information from the client may be warranted, as well as areas of tax law where proper treatment requires further analysis and information. Matters addressed include income, deductions, and reporting on Schedules K-1, K-2, and K-3. Participants are challenged to consider the effects of recent tax legislation, including H.R. 1, commonly referred to as OBBBA, when evaluating the case studies. This course follows a highly illustrative case study format to increase participant comprehension and retention.
Learning Objectives
When you complete this course, you will be able to:
- Identify the accounts that affect the accumulated adjustments account.
- Identify which items go on page 1 of Form 1120-S and which go on Schedule K.
- Determine how capital gains and losses are disclosed on Form 1120-S.
- Determine how wash sales and installment sales are treated by S corporations.
- 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.
Major Topics
Common errors made involving the following tax forms:
- Form 1120-S
- Schedule K-1
- Schedules K-2 and K-3
- Schedule L
- Schedules M-1 and M-2
- Form 4562
- Form 4797
