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.

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

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

Designed For

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

Prerequisites

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

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.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Joseph Nicola Jr., Surgent McCoy CPE, LLC

Leader Bios

Joseph Nicola Jr., Surgent McCoy CPE, LLC

Joe Nicola is a Tax Partner with more than thirty-five years of experience in public accounting. Joe has experience in many diverse areas of taxation, including the taxation of and planning for individuals, family offices, and various forms of business entities, such as corporations, partnerships, and limited liability companies. Joe is particularly experienced in federal and multi-state tax matters that affect numerous industries and niches, including private equity, investments, natural resources, manufacturing, distribution, high technology, securities, and start-up businesses. He has consulted on technically complex matters, such as retirement planning, succession planning in the context of a family office, securities, partnership and corporate reorganizations and liquidations, and international tax matters. While in public practice, Joe also served for many years as an adjunct member of the faculty with Duquesne University’s MBA and Master of Science in Taxation/Accountancy programs, as well as with Robert Morris University’s Master of Taxation program. His course load included Corporate Taxation, Advanced Corporate Taxation, Reorganizations (Mergers and Acquisitions), Taxes as a Basis of Managerial Decisions, and Taxation of Derivatives. He is also a published author of CPE/CLE texts and industry articles, and a frequent professional speaker. Mr. Nicola received his BS degree in Business Administration from Robert Morris University and his JD degree from the University of Pittsburgh School of Law.

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