S Corporation (Form 1120S) - Formation to Liquidation

Overview

With the increasing complexity and ever-changing nature of tax laws and issues, today’s accountant needs a S corporation course focusing on the birth, growth, maturity, and death of a closely held S corporation. This case driven course will deal with S corporation income tax laws from formation to liquidation. 

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Extensive review of the S corporation tax laws with an emphasis on any new legislative changes
• Requirements to make an S election (i.e., types and numbers of shareholders and second class of stock issues)
• Fixing late S corporation elections (i.e., Form 2553)
• S corporation formation (§351) and liquidation issues
• Revocation and termination of S corporations
• Schedule K and K-1 – separately stated versus non-separately stated income and expense items
• Detailed Schedule K-1 reporting including the 20% qualified business income (QBI) deduction and 3.8% net investment income tax
• Compensation issues including the tax treatment of fringe benefits
• Built in gains tax and other planning opportunities when converting a C to S corporation
• Preparation of the Schedule M-2 and the ordering rules for distributions out of the AAA, PTI, E&P and OAA accounts
• Tax treatment of stock redemptions (sale or distribution?)

Prerequisites

Background in S corporation and individual income tax law

Designed For

Tax professionals (in public or private industry) seeking a case driven income tax return course addressing many common, yet complex Federal S corporation issues and problems

Objectives

• Form a S corporation and calculate the entity’s initial inside basis in the assets and shareholder’s stock basis
• Understand the operational issues during the growth and maturity of a S corporation and how the schedule K items get allocated to the shareholders on their individual Schedule K-1 effecting stock and debt basis
• Prepare a Schedule M-2 and determine how distributions are treated to the shareholders
• Comprehend the tax ramifications of liquidating a S corporation and the sale versus redemption of a shareholder’s stock

Preparation

Background in individual and business income tax law

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by ACPEN. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.