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

Overview

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.

NOTE: This course qualifies for IRS CE (PTIN) credit. To receive IRS CE credit, please email your PTIN to profdev@orcpa.org at the end of the course. Surgent will report credit at the end of each quarter.

If you have questions, you can contact Professional Development at 503-641-7200, ext. 3 or email profdev@orcpa.org.

Highlights

Reviews of portions of error-prone "staff-prepared" Forms 1120-S and 1065 from client-provided information

Be aware of legislative changes

How to reduce input errors. When and how to rely on third-party data import software

What are common errors preparers make and what are the areas generating malpractice claims?

Initial administrative groundwork

The importance of Schedule M-1. Learn how various schedules are related and learn how to self-review Overview of new Schedules K-2 and K-3

Don't fall prey to reporting oddities

When can seemingly separately stated Schedule K items actually be trade or business items to report on Forms 1120-S or 1065?

Form 1120-S - 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 - New tax reporting requirement for partners' capital balances

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

Discussion of more complex transactions included in corporate structures

Multiple checklists of efficient procedures to identify potential issues on an 1120-S or 1065 tax return

Prerequisites

Experience in preparing Forms 1120-S or 1065, reviewing diagnostics, and preparing workpapers

Designed For

Senior-level staff new to the review process or experienced staff members looking to update and/or expand their review procedures

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

Fees

Code

Credits

Level

Vendor

Fields of Study

Leader(s):

Pamela Davis-Vaughn, Surgent CPE

Leader Bios

Pamela Davis-Vaughn, Surgent CPE

Pamela (Pam) J. Davis-Vaughn, sometimes known as the Fabulous Tax Babe, loves providing accounting, tax, and consulting services to clients across the United States from her office in Dallas, Texas. Her experience as an entrepreneur covers organic farming in upstate New York, a direct mail and printing business in Dallas, and working in the oil fields in Kansas, Oklahoma, Arkansas, and Texas. She has also worked as a CFO in the Telecom industry, a tax and accounting manager for a large independent oil and gas company, and a CFO of a direct mail and printing company. Pam has taught CPE for several years as well as designed and taught multi-state tax classes for Division 1 schools in Texas. She has also authored books and articles on multi-state tax. She worked at KPMG in Multi-State Tax as well as the M&A Department and another regional public accounting firm in Dallas. She holds a BS degree in Business and Accounting from the University of Kansas and an MBA from Wichita State University. Pam has also completed post-graduate work in international tax at New York University. She holds a license to practice in Kansas, Texas, and New York.

Revised (11/21/23)

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