Surgent's Forms 1120-S and 1065 Return Review Boot Camp for New and Experienced Reviewers

Overview

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.

Highlights

• Reviews of portions of error-prone “staff-prepared” Forms 1120-S and 1065 from client-provided information
• Be aware of legislative changes
• How to reduce input errors. When and how to rely on third-party data import software
• 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
• Overview of new 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
• Discussion of more complex transactions included in corporate structures
• Multiple checklists of efficient procedures to identify potential issues on an 1120-S or 1065 tax return

Prerequisites

Experience in preparing Forms 1120-S or 1065, reviewing diagnostics, and preparing workpapers

Designed For

Senior-level staff new to the review process or experienced staff members looking to update and/or expand their review procedures

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

Preparation

None