Staff Training Part 6: S & C Corporations (Currently Unavailable)
Author: Greg White
| CPE Credit: |
4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 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
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: June 2021
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: The Stakes
- 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
- Benefits and "Reasonable Compensation"
- Adjusted Basis: S Corp Stock
- Alf: Computing Basis and S Corp Stock
- Stock Basis: Distributions First
- When Do Loans Increase Shareholder Basis?
- Fringe Benefits
- Social Security Benefits
- Looking Ahead: Social Security Down the Road
- Computation: 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
- Recognize which form is used to elect S Corp status
- Identify a reason why an S Corp shareholder must keep track of their stock basis
- Identify correct statements regarding fringe benefits and taxability
- Describe a characteristic that would prevent an entity from electing to be treated as an S Corp
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (4 hours)
Program Prerequisites
None
Advance Preparation
None
