BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Friday, January 19, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

This course will discuss what the IRS expects to find in its audit of Subchapter S corporations. Our panel of tax experts will focus on complying with current basis, distribution, and documentation requirements and explain how to handle a Subchapter S examination for tax practitioners working with these entities and their shareholders.

Faculty

Josie Harris-Walton
Miscellaneous

Ms. Harris-Walton is an accomplished attorney with an illustrious reputation in tax law, Ms. Harris-Walton  is affectionately known as the "TaxPros Attorney."   She is renowned for her innovative TaxPros Concierge framework, a solution that ensures tax professionals remain in compliance with the IRS and tax laws, granting them relief for any legal entanglements or imprisonment. Ms. Harris-Walton's educational background is just as impressive, holding a Master of Law in Taxation (LL.M. in Taxation) from DePaul University School of Law.  Driven by her passion and dedication to helping tax professionals and businesses resolve complex tax and corporate issues have made her a trusted advisor in the industry. With more than a decade of experience in the legal profession, Ms. Harris-Walton has garnered accolades for her expectational skills, unwavering attention to detail, and client-focused approach. She strives to guide her clients through the intricates of tax and corporate law. Ms. Harris-Walton is committed to helping her clients navigate the often complex and challenging world of tax and corporate world with ease and confidence. 

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David J. Warner
Tax Attorney, Shareholder & Managing Principal
Holtz, Slavett & Drabkin, APLC

Mr. Warner is a Tax Attorney and the Managing Attorney of the Orange County Office of Holtz, Slavett & Drabkin. He has over 10 years of experience practicing in all aspects of tax controversy including tax audits, collection defense, and litigation in the U.S. Tax Court, U.S. District Court, and the Court of Federal Claims. He represents taxpayers in cases involving income tax, estate tax, gift tax, employment tax, collection issues, innocent spouse, penalties, and bankruptcy tax issues. He also represents taxpayers before the California Franchise Tax Board (FTB), Department of Fee and Tax Administration (CDTFA, formerly State Board of Equalization (BOE)), and Employment Development Department (EDD). He has particular expertise in tax matters involving individuals and small businesses, the examination of partnerships and S corporations, and offshore tax compliance issues, including the Report of Foreign Bank and Financial Accounts (FBAR), civil fraud, and offshore information return penalties.

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Description

The IRS has ongoing compliance campaigns targeting S corporations under its Large Business & International Division (LB&I). Of these, basis examinations may be the most problematic for tax practitioners.

The rules for calculating basis are complex but essential for deducting losses. Partners' loans are often used to increase the basis in a partnership. For S corporation shareholders, these rules are not so liberal. The LB&I is aware that some S corporation shareholders deduct losses above basis and perform basis audits of shareholders reporting significant losses. New Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations, is being added to make it easier for the IRS to track shareholder basis.

Additionally, the IRS is also focusing on another area of noncompliance, distributions to shareholders that should be taxed, including distributions that are dividends, distributions of appreciated property, and distributions in excess of basis.

With S corporations under such scrutiny, tax advisers working with Subchapter S corporations must properly report basis, distributions, and built-in gains. Tax practitioners must not only grasp how to tax S corporation shareholders properly; they must also understand how to represent these taxpayers throughout an IRS examination.

Listen as our panel of S corporation experts reviews the current IRS focus on S corporation shareholders, including audits of basis, distributions, high net worth taxpayers with flow-through entities, and built-in gains, including documenting and complying with current guidelines properly.

Outline

  1. IRS' S corporation campaign
  2. Distributions to shareholders
  3. Losses in excess of basis
  4. Shareholder debt reporting on Schedule K-1
  5. The examination process

Benefits

The panel will review these and other key issues:

  • Whether loans can be used to increase an S corporation shareholder's basis
  • How built-in gains are calculated and taxed
  • How to calculate and document shareholders' basis in S corporations
  • What increases a shareholder's chance of being selected for an audit?
  • How can taxpayers best prepare for an IRS examination of S corporation records?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Establish the impact of the IRS compliance campaign on S corporations
  • Determine how to calculate and document shareholders' basis in S corporations
  • Recognize the IRS' focus on accumulated earnings and profits
  • Ascertain whether an S corporation is at risk of being found in noncompliance with IRS audit focal points
  • Decide which S corporation records are needed to respond to an IRS audit of an S corporation

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).