Event Description

As experienced staff masters the preparation intricacies of an 1120S tax return, they are expected to understand and apply the underlying concepts, principles and laws governing S corporation status. This course is designed to illustrate in both theory and practice overarching principles that govern S corporations from formation to revocation, termination and liquidation. Experienced client-facing staff should be aware of the pitfalls that may inadvertently cause an S-status termination or may generate unintended tax consequences to shareholders.

Designed For

Experienced CPAs desiring a comprehensive case approach to understand reasonably complex S corporation issues and problems; also, CPAs who want a comprehensive, intermediate-level S corporation practice manual

Objectives

Prepare more complicated S corporation returns Understand certain advanced concepts of S corporation taxation Protect S corporation clients from falling out of S corporation eligibility

Major Subjects

What exactly is terminating S corporations, updated for 2020/2021 rulings Shareholder changes Living Trust and causes S termination LLCs electing S status, changing agreement could terminate election Basis calculation worksheet Inherited a new client with reporting errors? What are my options? Debt vs. equity and §385; Federal Express battled and won, how do we? Are we to expect SECA tax on pass-through entities? Tracking multiple shareholder debt basis. Revamped 1120S K-1 form and instructions Impact of CARES and Tax Relief Acts of 2020: Section 163(j) modifications, effect of PPP loan forgiveness on partners’ outside bases Shareholders losing “substance over form” argument Basis neither increased by phantom income, nor reduced by non-deducted pass-through losses Can I accrue expenses payable to a shareholder? Sure, but can I deduct them? How §179 limitations affect S corp. basis Comparison of liquidation of a C corporation vs. the liquidation of an S corporation Did not timely file Form 2553? A simple method to correct Is there a “flexible standard of law” in regard to closely held entities?

Prerequisites

Basic knowledge of and experience with S corporation taxation

Instructions

None