2015-2016 Federal Tax Update: Small Business Issues and C Corporation Terminations (Currently Unavailable)

Author: Stuart P Sobel

Get an update on Small Business Issues including Affordable Care. Learn about issues involved in C Corporation Terminations.

Publication Date: October 2015

Designed For
All tax practitioners in public and private practice who need to understand the basics and recent changes in the tax law and procedures.

Topics Covered

• Employer health reimbursement plans and the ACA
• Sale of an accounting practice
• Self-rental
• Reporting of certain cash payments
• Corporate liquidation plan
• Corporate reporting requirements
• Liquidation expenses
• General corporate liquidation tax rules
• Taxation of shareholders
• Subsidiary liquidation
• Liquidating distributions with installment obligations
• Shareholder reporting requirement

Learning Objectives

• Avoid mistakes in handling tax preparation for certain small business issues
• Understand the proper filing requirements for a terminated C corporation
• Accurately prepare shareholders returns in a C corporation termination
• Identify the potential tax ramifications of an asset transfer
• Recognize situations where business owners would want to redefine the definition of what constitutes family
• Identify situations when a business-owned life insurance in valuation provision in a redemption type buy-sell agreement
• Recognize potential reorganization strategies
• Identify which situation specifically applies to a C corporation distributes property with debt greater than basis of fair market value (FMW) of an asset
• Identify who is at fault when the IRS responds in a different tax year from the filing year and request a refile of returns since electing an S corporation status
• Recognize complete liquidation when a company wants to sell its assets and distribute cash to its shareholders
• Identify the filing date for Form 1120
• Identify the filing date and rules for a Form 966 under a plan of liquidation
• Describe the circumstances under recognizing a loss under anti-stuffing rules
• Recognize the most effective, although not foolproof, way to ensure goodwill passes on to shareholders
• Identify under IRC §105, when you would a health plan in your company if you wanted a plan in which a set fund or employee savings account reimburses expenses as they accrue up to a specified dollar amount and the unused amounts are not carried over
• Recognize violation of market reforms for health reimbursement plans in a variety of situations
• Determine which procedures you would want to include in a plan which does not provide excepted benefits
• Identify asset categories under Asset Aqcuistion Under Section 1060 for classifying office furniture, office equipment such as photocopiers, and your office building
• Determine the best way to set up your own consulting business as an S corporation and making the a decision to choose the best location
• Identify how to best fill out Form 8300, if received
• Recognize valid reasons either for or against entering into a buy-sell agreement
• Identify how if you applied the Social Security definition of a disability to this case, the disability would need to continue for at least
• Differentiate the suggested guidelines for a writing a policy on retirement into a buy-sell agreement or any other type of business agreement, you would establish that early retirement for an actively participating shareholder requires the person by age 60
• Recognize when it's advisable to apply a buy-sell agreement to a divorce between two spouses
• Identify what you would want to avoid in a buy-sell agreement
• Differentiate scenarios where multiple shareholders announce a year in advance they are going to leave the business.
• Evaluate distributions made to shareholders when selling assets and receiving an installment note for a sale
• Identify the percentage rules for an S corporation status and could be terminated if, in addition to the accumulated earnings and profits are present
• Determine the proper form for a small business organized as a C corporation that would like to elect S corporation status and a fiscal year
• Recognize what to avoid and how to handle a fiscal year delayed status denial
• Determine the proper filing date for a liquidated company selling its assets
• Identify why a C corporation may distribute its assets rather than selling them
• Recognize the rules of a C corporation selling an asset using an installment plan
• Identify which of the following applies upon liquidation of a C corporation under IRC§336(d)(2)
• Determine under related-party rules under a complete liquidation and distribution of property as a tax-deferred transaction under IRC§351
• Identify the proper action in a liquidation process, a company makes a distribution to shareholders in which the liability exceeds the fair market value of the distribution
• Recognize the rules applied to liabilities arising after liquidation
• Differentiate the conditions applied to a subsidiary that is under 80% control by the parent corporation is liquidated
• Determine health and accident coverage and how to exclude these plans from employee income and treat the amounts received under these plans the same as the amounts received in accident and health insurance under
• Recognize non-discrimination rules, who of the following among your employees would you be permitted to exclude from a health care plan
• Evaluate the percentage in a group health insurance plan, you would want to make sure that the amount of out-of-pocket expenses paid by employees such as coinsurance, copayments, and the maximum deductibles represent
• Identify the proper form for an employer is obligated to report any violation of an Affordable Care Act market reform to the IRS
• Recognize when a small business owner would be eligible for transitional relief under IRS Notice 2015-17
• Determine relevant factor specific to the valuation of the business would you include in addition to a percentage of your practice's gross receipts
• Identify which code sections would be consulted for rules governing the transfer of client files if you were a tax practitioner and wanting to sell your business
• Illustrate to your client, who owns rental property and wants to know whether she falls within the scope of the self-rental rule
• Determine the tax tax consequences of self-rental
• Identify the requirement to report the cash payment amount as a business owner receiving a cash payment from a client under IRC §60501

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (6 hours)

Program Prerequisites
A basic understanding of tax preparation.

Advance Preparation
None