Description

As experienced staff members master the preparation intricacies of an 1120-S 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.

Instructor: Sue Smith, CPA

Target Audience

Experienced Accounting and Financial Professionals desiring a comprehensive case approach to understand reasonably complex S corporation issues and problems; also, Accounting and Financial Professionals who want a comprehensive, intermediate-level S corpo

Course 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

Subjects

What exactly is terminating S corporations, including recent rulings

Schedules K-2 and K-3 reporting requirements and filing exceptions

Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations

Shareholder changes Living Trust and causes S termination

LLCs electing S status, changing agreement could terminate election

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?

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