Preparing Form 1120S: Part 2

Author: Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Join expert Greg White, CPA, as he walks you through how to complete Form 1120S and apply new rules that are crucial to properly preparing Form 1120S.

Publication Date: December 2025

Designed For
Tax professionals who have S corporation clients.

Topics Covered

• Allocation of income
• Direct shareholder loans to S Corp
• Schedule K-1
• K-2/K-3 exemptions
• Loans to shareholders
• Ineligible shareholders
• Avoid with "drop downs" to LLC
• Inadvertent terminations
• Fixing LLC S Corps with "crazy boilerplate"
• Distributions
• Former C Corps
• Trusts and estates as shareholders
• Schedule M-3
• Choosing the best retirement plan

Learning Objectives

• Explain how to complete Form 1120S on a line-by-line basis
• Identify the requirements that waive the requirement to file Schedules K-2 and K-3
• Identify how to categorize income and expense items to the accumulated adjustments account, the accumulated earnings account and the other adjustments account
• Identify the disclosure requirements for Schedules K-1
• Explain how to apply the “closing of the books” election
• Identify the income limit for designated Roth accounts
• Identify the type of trust that can qualify as an S corporation shareholder if the entire trust is treated as owned by a U.S. citizen or resident
• Identify the strategy that an S corporation can use to avoid passive investment income tax and potential termination
• Identify the type of trust most commonly used as a credit shelter or bypass trust for S corporation shareholders

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
None

Advance Preparation
None