As they gain more experience, staff are expected to take on more complex assignments with minimal supervision. The course is designed to assist experienced staff to take the next step by taking a deeper analysis into critical issues affecting present S corporation clients. Discussions utilizing real life examples allow for group analysis, discussion, and problem solving.

Major Topics:

  • Applicable coverage of recent tax acts and any new legislation enacted before presentation
  • Current private letter rulings reveal the failure in one or more S corporation eligibility requirement that is causing inadvertent terminations
  • How to avoid those terminating errors
  • The $100/day penalty and transitional relief
  • Affordable Care Act reporting issues and Shared Responsibility
  • S Corporations and self-employment tax – how long do we have?
  • Detailed review of basis calculation rules, deducting losses, stock vs. loan and “at-risk” basis
  • Final regulations regarding open debt and the handling and repayment of shareholder loans
  • Basis neither increased by phantom income, nor reduced by non-deducted pass-through losses
  • How IRS calculates CPA’s reasonable compensation
  • Taxable distribution in excess of basis and reporting issues to shareholders
  • Proper handling of accrued expenses payable to a shareholder
  • How §179 limitations affect S corp. basis
  • Liquidation of the S corporation
  • Current procedures to correct a late S corporation election
  • Is there a “flexible standard of law” in regard to closely held entities?

Learning 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

Designed For: Experienced CPAs who desire a comprehensive S corporation course that will enable them to understand reasonably complex S corporation problems and issues; also, CPAs who want a comprehensive, intermediate-level S corporation practice manual
Level of Knowledge: Intermediate
Prerequisite: Basic knowledge of S corporation taxation
Advanced Preparation: None
Credits: 8