Reviewing S Corporation Tax Returns: What Are You Missing?

Overview

Training your reviewer’s eye

The complexity of S corporation tax law presents a formidable challenge to tax practitioners for accurate compliance and reporting of S corporation activities.

The course identifies the common errors practitioners make on S corporation tax returns that review staff should spot.

Four returns for you to review

Learners can fine-tune their reviewing skills by examining case studies of sample tax returns that may warrant additional information from the client and areas of tax law where proper treatment requires additional analysis and information.

Issues discussed include:

Income and deductions

Schedule K-1 reporting requirements

Schedule K-2 and K-3 reporting requirements and the domestic filing exception

The tax return in each case study contains errors or inaccuracies, giving learners the opportunity to apply their reviewing skills.

Developed with H.R. 1, commonly referred to as OBBBA, in mind, these case studies reflect the realities of reviewing S corporation returns today.

Highlights

Common errors made involving the following tax forms:

Form 1120-S

Schedule K-1

Schedules K-2 and K-3

Schedule L

Schedules M-1 and M-2

Form 4562

Form 4797

Prerequisites

Experience with S corporation tax return preparation

Designed For

CPAs

Managers and partners responsible for reviewing returns

Objectives

Identify the accounts that affect the accumulated adjustments account.
Identify which items go on page 1 of Form 1120-S and which go on Schedule K.
Determine how capital gains and losses are disclosed on Form 1120-S.
Determine how wash sales and installment sales are treated by S corporations.
Determine the tax consequences when a newly converted S corporation sells appreciated property it acquired while operating as a C corporation.
Determine the tax consequences associated with the distribution of appreciated property by an S corporation to a shareholder in redemption of stock.

Notice

This course is offered by a 3rd party vendor and will not be accessible in the My CPE Tracker section of the ISCPA website. Course access information will be emailed directly to you by AICPA.