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. In this course, we discuss the common errors practitioners make on S corporation tax returns that review staff often miss. The intent is to sharpen reviewers’ skills by examining four 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. Matters addressed include 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 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.

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

Designed For

CPAs and managers and partners responsible for reviewing returns

Prerequisites

Experience with S corporation tax return preparation

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 Bios

Larry Tunnell, AICPA

Larry Tunnell, Ph.D, CPA New Mexico State University (ret.), Las Cruces, NM

Dr. Larry Tunnell is Professor Emeritus in Accounting at the College of Business at New Mexico State University. He has over 25 years of experience teaching, publishing, and practicing in the area of taxation.

He is coauthor of a book on partnership taxation and a widely-used textbook on general federal taxation. In addition, he is author or coauthor on over 20 articles in the area of taxation.

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Robert Ricketts, AICPA

Robert Ricketts, Ph.D, CPA Texas Tech University/Lubbock, TX

Robert Ricketts is Professor Emeritus in Taxation at Texas Tech University. He lives outside of Lubbock, Texas with his beautiful wife, also a CPA. His daughter is also a CPA, working with a public accounting firm in Dallas. Certified in the state of Texas in 1984, Ricketts taught in the graduate tax program for 35 years and held the Frank M. Burke chair in Taxation there. His primary teaching responsibilities were in tax research, corporate tax and international tax, and he was (and still is) co-author of CCH’s Taxation of Partnerships and S Corporations. He served as Director of the School of Accounting, now the Lyons School of Accounting, for almost 20 years before retiring in 2023.

Robert has co-authored a number of courses on partnership and S corporation taxation for the AICPA over the last 2 decades and was co-author of two popular tax textbooks while at Tech. Having retired, he now enjoys working with the boarding stable he runs with his wife, along with any number of outdoor activities, and, of course, working with the AICPA.

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