Forms 1120-S and 1065 Return Review Boot Camp for New and Experienced Reviewers

Most review techniques developed by professionals are self-taught and fine-tuned via experience. Yet how does one start? The purpose of this course is to give both new and seasoned reviewers additional and advanced procedures via a multitude of checklists to more thoroughly review S corporation and partnership tax returns. Its emphasis is not planning; rather, it is to develop a strategy to properly review a return effectively and thoroughly. The course includes dozens of practice tips for new reviewers and is updated for impacts of newly enacted legislation.

Major Topics

• Reviews of portions of error-prone staff-prepared Forms 1120S and 1065 from client-provided information
• What are common errors preparers make and what are the areas generating malpractice claims?
• Initial administrative groundwork
• The importance of Schedule M-1
• Reporting requirements for Schedules K-2 and K-3
• Dont fall prey to reporting oddities
• When can seemingly separately stated Schedule K items actually be trade or business items to report on Forms 1120S or 1065, page 1?
• Form 1120S  What exactly is terminating S elections today? How do I recognize a second class of stock? Maintaining shareholder basis schedules; beware of final IRS regulations regarding open debt; the default method of calculating basis versus the election under 1367; can an S corporation distribute earnings and profits from C corporation years?
• Form 1065  Why use 704(b) to maintain capital accounts; 704(c) regulations for preventing the shifting of tax consequences among partners or members; allocating recourse, nonrecourse, and qualified nonrecourse debt; a review of 754 step-up in basis rules
• Multiple checklists of efficient procedures to identify potential issues on an 1120S or 1065 tax return

Learning Objectives

• Expand the process involved in reviewing applicable tax returns
• Identify the most common areas that result in errors
• Document a review, including consideration of risk management