Hands-On Tax Return Workshop – S Corporations (Form 1120S)
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Training for Business Professionals
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:
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.
Once participants have completed this session they should be able to:
- Prepare a complete Form 1120S income tax return and related schedules with minimal review points
- 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)
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). Topics include:
- Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting S corporations
- Extensive review of the S corporation tax laws with an emphasis on any new legislative changes
- Schedule K analysis – determined if income statement items are treated as separately (i.e. schedule K) or non-
separately stated income and expense items
- Discuss how schedule K items get allocated to shareholders on their schedule K-1s
- Look at what relevant information related to the 3.8% net investment income tax needs to be reported to the
- Talk about the unreasonably low officer compensation issues
- Learn the special tax treatment of fringe benefits paid to 2% shareholders and family members
- Schedule M-1 – calculate the reconciliation of income or loss per books with income or loss per income tax return
- Schedule M-2 – detailed step-by-step calculation of the AAA, OAA and PTI accounts
- Basic overview of the tax treatment of distributions including when a S corporation has prior C corporation earnings and
- Review the importance and basics of calculating a shareholder’s stock and debt basis
- Basic overview of the potential S corporation built in gains tax from the conversion of a C to S corporation