Staff Training Part 6: S & C Corporations

Author: Greg White

CPE Credit:  5 hours for CPAs
5 hours Federal Tax Related for EAs and OTRPs
5 hours Federal Tax Law for CTEC

We’ll introduce the Federal tax treatment of corporations. This will include the “flow-through” nature of S corporations and the double tax treatment of C corporations. We’ll also cover the special eligibility requirements that apply to S corporations and how to fix inadvertent slip-ups by your clients.

Publication Date: August 2020

Designed For
Designed for tax professionals involved in federal tax planning or tax return preparation.

Topics Covered

  • Taxation comparison: S corporations vs. C corporations
  • Form 1120‐S
  • Form 1120
  • Form 1099‐DIV
  • Biggest Differences: S Corp vs. C Corp
  • The Problem with C Corps Double Tax
  • Qualification for S Corp Status
  • Traps:Second Class of Stock
  • Mowery v. Commissioner: TC Memo 2018‐105
  • Form 2553: Electing to Be an S Corp
  • Fixing Late Elections
  • Mistakes Were Made: §1362(F)
  • Reasonable Compensation
  • Recharacterization: IRS Needs Some Payment
  • How Do We Calculate "Reasonable Comp?
  • David E. Watson, PC
  • Methods to Determine Reasonable Compensation
  • Talented People and S Corps
  • Lessons Learned S Corps and Payroll Taxes
  • Adjusted Basis: S Corp Stock
  • Computing Basis: S Corp Stock
  • When Do Loans Increase Shareholder Basis?
  • Fringe Benefits
  • Social Security Benefits

Learning Objectives

  • Identify mistakes that can lead to disqualification of S corporation status
  • Recognize how to fix mistakes that resulted in the disqualification of S corporation status
  • Compute the range of reasonable compensation for S corporation shareholders
  • Recognize which forms to use in various client scenarios
  • Identify the current tax rates
  • Differentiate between C and S Corps
  • Describe which types of entities is eligible to be treated as an S Corp
  • Identify a second class of stock
  • Describe reasonable compensation and S Corps
  • Identify a common taxable noncash benefit
  • Identify a common noncash fringe benefit that is not taxable
  • Identify the first step in calculating the cost of lost social security benefits
  • Recognize when a C or S Corp pays tax
  • Identify a type of retirement plan where contributions are based upon compensation

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (5 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $95.00

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