The objective of this course is to train new, rusty, or returning-to-practice staff to prepare complicated federal subchapter S corporation tax returns. The course utilizes a chapter-by-chapter, hands-on approach. As more details are discussed in each chapter, participants are provided with the information needed to prepare an intricate Form 1120-S. The course and instruction delivery are geared toward basic understanding and systematically address more complex issues via Surgent’s step-by-step preparation guide. The boot camp will help staff understand the connections between a trial balance and a completed S corporation return. The completed Form 1120-S is provided in the case solutions.
Learning Objectives
- Prepare Form 1120-S and Schedules M-1, K, and K-1
- Understand common business reporting on Forms 4562 and 4797
- Provide staff with the first stage of a graduated professional education program in servicing S corporation clients
Major Topics
- Federal income tax laws for S corporations, from formation to tax return preparation issues
- Key operational issues of separately stated versus non-separately stated income and expenses
- The importance of Schedule M-1
- Accurately accounting for basis, AAA, and distributions
- Properly preparing and allocating items on Schedule K-1
- Reporting requirements for Schedules K-2 and K-3, including filing exceptions
- Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations
- Identification of eligible shareholders
- Requirements to make a timely or late election
- Involuntary S corporation status terminations, cases and rulings, and other developing issues and hot topics
- Mastering Forms 4562 (“Depreciation and Amortization”) and 4797 (“Sales of Business Property”)
- S corporation reporting oddities
- Accurately preparing S corporation returns and reconciling book income with taxable income
