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

Expand the process involved in reviewing applicable tax returns. Identify the most common areas that result in errors. Learn how to document a review, including consideration of risk management. Get checklists to more thoroughly review S corporation and partnership tax returns. Hear dozens of practice tips for new reviewers.
Highlights

• Reviews of portions of error-prone 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 oddities
• When can seemingly separately stated Schedule K items 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 Section 1367; can an S corporation distribute earnings and profits from C corporation years?
• Form 1065 – Why use Section 704(b) to maintain capital accounts; Section 704(c) regulations for preventing the shifting of tax consequences among partners or members; allocating recourse, nonrecourse, and qualified nonrecourse debt; a review of Section 754 step-up in basis rules
• Multiple checklists of efficient procedures to identify potential issues on an 1120S or 1065 tax return