Correcting S Corp & Partnership Basis for ERC, Prior Year PPP Loans & Other Issues (Completed)

NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Two very common COVID benefits have caused serious errors with understated basis affecting many S corp shareholders and partners' basis related to how business ERC refunds and PPP loans were reported on the entity tax returns. These entity reporting errors affect the individual tax preparer's Form 1040 clients' basis. Both of these matters cause a shareholder's or partner's basis to be understated, often by substantial amounts. This course will review these critical basis miscalculations and help business tax preparers and individual tax preparers identify clients with these issues and fix these basis errors. Plus we'll discuss an analysis to correctly report ERC refunds received in 2023 and prior years.

Who Should Attend
Both individual and business tax preparers

Topics Covered

• Basis errors caused by mis-reporting PPP forgiven loans
• Basis errors caused by ERTC refunds claimed or received
• Individual vs business tax preparers obligations for correct basis
• Correcting basis issues for COVID benefits
• Tax issues resulting from incorrect basis
• ERTC refunds received and correct reporting

Learning Objectives

• Understand common basis errors related to PPP & ERC COVID benefits and how to fix this issue
• Identify which clients are likely to have these basis errors
• Learn IRS guidance related to these basis errors and steps for resolving current year basis
• Develop best practices for correcting basis errors and determining if an amended return is needed
• Analyze the components of ERC refunds received and how to report them for the year received

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None