Staff Tax Training: S Corporations (Form 1120S) 2024

Overview

This two-day training course provides 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 into real-world case scenarios and preparing and reviewing the IRS tax forms and schedules. Attendees will receive a comprehensive S corporation income tax reference manual that includes practice aids, real-world examples, new Federal income tax forms and programs, and Pat Garverick’s Quick Reference Chart. This session is taught using a hands-on methodology. Real-world examples and cases demonstrate the complex income tax code and regulations to enhance the participant’s 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.

Highlights

• Extensive review of the partnership tax laws with an emphasis on any new legislative changes and Form 1065 (and related schedules) preparation issues
• Overview of different forms of business entities, including the check-the-box regulations
• Formation issues, including the mandatory allocation of the 704(c) pre-contribution gain or losses back to the contributing partner/member
• 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)
• Calculating the tax and 704(b) book capital accounts
• Understand the substantial economic effect requirement to have special allocations to the partners/members
• Allocation of recourse and non-recourse debt to the schedule K-1s
• Deductibility of fringe benefits, including health insurance premiums
• Guaranteed payments & self-employment tax issues and pitfalls
• Overview of how partnership losses and deductions can be limited to calculating a partner/member's outside basis and at-risk rules
• 754 election for optional basis adjustments triggering 743 (transfer of interests) and 734 (distributions)
• Partnership liquidation and distribution tax ramifications at both the partnership and partner level

Prerequisites

Basic understanding of individual income taxation.

Designed For

Tax return preparers, staff accountants, and paraprofessionals with little or no experience. Also, out of practice public accountants seeking a comprehensive basic S corporation income tax course.

Objectives

• Understand the Federal income tax laws applicable to Partnerships/LLCs and their partners from formation to liquidation (i.e. theory) and apply this from a tax-form perspective (i.e. tax preparation)
• Prepare a complete Form 1065 income tax return and related schedules with minimal review points

Preparation

None