Hands-On Tax Return Workshop - S Corporations (Form 1120S)

Description

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. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

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).

Topics include:

• Extensive review of the S Corporation tax laws with an emphasis on any new legislative changes including the Tax Cuts & Jobs Act (TCJA) new 20% qualified business income (QBI) deduction and changes to the interest deduction, fringe benefits and entertainment expenses
• Schedule K analysis" determine if income statement items are 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 shareholders
• 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 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, PTI, E&P and OAA accounts
• Basic overview of the tax treatment of distributions including when a S Corporation has prior C corporation earnings and profits (E&P)
• Review the importance and basics of calculating a shareholder's stock and debt
• Basic overview of the potential S Corporation built in gains tax from the conversion of a C to S Corporation

Objectives

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)

Designed For

Tax return preparers, staff accountants, and paraprofessionals with little or no experience and out of practice public accountants seeking a basic partnership tax return preparation course.