Disregarded Entities: Now You Don't See Them, Now You Do (Currently Unavailable)

Author: Bradley Burnett

The Chameleon Takes On the Color of Its Context But, Not Always What is a disregarded entity (DE)? It is a business entity that is generally disregarded from its owner for federal income tax purposes, but not disregarded for (some or all) other purposes. If an entity is "disregarded" for federal income tax purposes, it may be "regarded" for other federal tax and state law purposes. Yes, indeed, a plethora of exceptions to being "disregarded" exist. This unexpected, eye opening course capably explores and drills into what the tax planner, tax preparer and taxpayer must know about the disregarded entity rules and exceptions to them.

Publication Date: June 2020

Designed For
CPAs, professionals in industry, tax planners and taxpayers desiring to maximize the asset protection features and minimize the tax disadvantages of business entity structure.

Topics Covered

• Disregarded entities (DE)s for income, employment, excise and transfer tax purposes
• Can an owner and DE have different methods of accounting? Oh really
• Asset protection benefits, pitfalls and tax advantages
• When a DE must get a separate EIN from its owner
• Tax reporting (K-1s, 1099s, etc.) IRS matching, W-9s and backup withholding
• Spouses owning and operating LLCs
• Devastating employment tax liability exposure
• Like kind exchanges and disregarded entities
• LLC (partnership), SMLLC (single member LLC), grantor trust and QSub compared
• LLCs, transfer (estate and gift) taxes and valuation (long live Pierre!!)
• Nooks and crannies in the check-the-box regs and rules - Why you can't afford not to care
• Tax effects of sale or liquidation of DEs
• DE state law vs. federal law distinctions and intricacies a/k/a Some states are better than others

Learning Objectives

• Recognize how to analyze and detect when an entity is disregarded and when it is regarded
• Identify how to take advantage of the differences between the same entity being regarded in some contexts and disregarded in others for maximum asset protection and tax savings
• Recognize correct statements correct regarding taxpayer ID numbers for disregarded entities
• Describe characteristics of a common paymaster
• Differentiate IRC sections
• Identify the exit ramps with respect to CPAR requirements
• Identify trust where the power rests with the grantor to administer or control the trust assets and receive income produced by trust assets
• Recognize which types of arrangements can save the employer share of employment taxes

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None