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
Instructor
Greg White
Greg White, CPA, taught for 14 years as an adjunct professor for Golden Gate University. He’s admitted to practice before the United States Tax Court. He is a founder and shareholder, in WGN PS in Seattle, WA. He has been named a Top 50 IRS Representation Practitioner in the U.S. by CPA Magazine and has taught for a number of professional organizations. Greg enjoys the technical side of tax, but also likes to have fun in class.