Reviewing S Corporation Tax Returns: What Are You Missing?

Overview

The complexity of S corporation tax law creates a formidable challenge to the tax practitioner for accurate compliance and reporting of their client’s S corporation activities. Join us as we discuss the common errors practitioners make on S corporation tax returns that are often missed by review staff. The intent is to sharpen skills for reviewers by examining case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires additional analysis and information. Multiple issues will be discussed including income, deductions, K-1 reporting, and K-2 and K-3 reporting. This course follows a highly illustrative case study format to increase participant comprehension and retention.

Objectives

When you complete this course, you will be able to:

Identify common mistakes made on S corporation tax returns.

Determine strategies to avoid making mistakes on S corporation tax returns. - Determine how transfers to corporations in exchange for stock can be nontaxable under IRC Section 351.

Calculate the balance in an accumulated adjustments account and enter that calculation on Form 1120S, Schedule M-2.

Determine how capital gains and losses are disclosed on Form 1120S.

Identify and properly report cost recovery deductions on Form 1120S and the associated Schedule K-1s issued to shareholders.

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.

Highlights

Common errors made involving the following tax forms:

Form 1120-S

Schedule K-1

Schedule L

Schedules M-1 and M-2

Form 4562

Form 4797

Designed For

CPAs working with clients requiring expertise in S corporation taxation for the current tax season

Prerequisites

Basic knowledge of S corporation income taxation

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy. https://www.ctcpas.org/events/cpe-policies

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Arthur Auerbach, Surgent McCoy CPE, LLC

Leader Bios

Arthur Auerbach, Surgent McCoy CPE, LLC

Arthur Auerbach, CPA, CGMA is an independent tax consultant located in Atlanta, Georgia, specializing in tax consulting and estate and financial planning for individuals and closely held businesses. He is affiliated with the Asbury Law Firm as a consultant. He is a member of the Georgia, Virginia, New York, and Greater Washington CPA societies. Art was appointed to the AICPA Tax Executive Committee for a three-year term beginning February 1, 2018, and ending May 31, 2021. Beginning in May 2021, Art was appointed to be a member of the AICPA Tax Practice and Procedure Committee. He is an active member of the Georgia Society of CPAs and serves on the Georgia Department of Revenue Commissioners Advisory Group, the Financial Literacy Task Force, and Leadership Council, in addition to chairing the GSCPA Federal State Tax Task Force. He is also a member of the Virginia Society’s Tax Committee. He has served as an advisor to the District of Columbia Office of Tax and Revenue and the Tax Commissioners Advisory group in Virginia. Art is a nationally recognized speaker on a variety of tax topics offered for continuing education for CPAs and financial planners. He has authored several publications and articles. Art is licensed in Georgia, Virginia, District of Columbia, and New York, and he is a life member of the American Institute of CPAs.

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