BarbriSFCourseDetails
  • videocam Live Webinar with Live Q&A
  • calendar_month April 21, 2026 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Recent IRS Rules for S Corporations: Activity and Basis Reporting, NRAs, QBI, and IRS Basis Audits

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About the Course

Introduction

This webinar will address the latest Subchapter S corporation tax issues. Our panel will discuss the requirements to include basis schedules and separate activity reporting in Form 1120-S, nonresident aliens and ESBTs, and preparing for the current IRS initiative focusing on audits of S corporation basis.

Description

Basis adjustment is the biggest S corporation issue for IRS audits and the focus of the latest IRS initiative. Having up-to-date basis schedules for S corporations is critical. Form 1120-S requires submission of basis schedules with the return. Practitioners may need to calculate or update these schedules.

Section 465 limits the amount of deductible losses owners can claim based on amounts at risk. If the corporate items of income, loss, or deduction reported on Schedule K-1 are from more than one activity covered by the at-risk rules, the corporation must report information separately for each activity. Activity-by-activity reporting creates a burden for many S corporations, yet tax advisers and return preparers must be familiar with the at-risk rules and handle the reporting requirements appropriately each year.

Similar to other businesses, the tax law provided S corporations with the benefit of a QBI deduction. There are steps tax practitioners can take to help maximize this deduction. And since there are substantial penalties for noncompliance, proper reporting for the flow-through deduction on Schedules K and K-1 reporting is essential.

Before recent tax reform, an ESBT (electing small business trust) beneficiary had to be an eligible S corporation shareholder. Now, a nonresident alien can be a potential current beneficiary of an ESBT without being a disqualified shareholder.

Listen as our panel of experts covers the latest developments with S corporations, including basis and at-risk reporting, NRAs as shareholders of ESBTs, Section 1371(f) regulations, and other recent developments.

Presented By

John Alfonsi, CPA
Partner
Prosperity Partners LLC

Mr. Alfonsi brings over 40 years of experience in tax and advisory services, focusing his practice on business valuation, economic damages, and tax planning and consulting for pass-through entities. He is a recognized financial expert in federal and various state circuit courts across the country. In his spare time, Mr. Alfonsi is an adjunct professor at his Alma Mater Walsh College, teaching master’s degree courses in taxation and valuation.

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Mark Gallegos, CPA, MST
Partner
Porte Brown, LLC

Mr. Gallegos, CPA, MST, is a tax partner on Porte Brown’s accounting and consulting services team in the Elgin, Illinois, office. He has more than 20 years of experience. Mr. Gallegos spends a great deal of time advising, speaking, and writing about international tax, mergers & acquisitions and credits and incentives. He has been entrenched in the intricacies of tax legislations and impending changes. Mr. Gallegos co-hosts a recurring webinar series on the topic and regularly speaks on tax legislation and other tax topics. Prior to working at Porte Brown, Mr. Gallegos worked for two national accounting firms focusing on middle market clients. He has a passion for helping clients navigate the complicated tax code and being their business advisor to help them be successful.

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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).

Date + Time

  • event

    Tuesday, April 21, 2026

  • schedule

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

I. Basis reporting

II. Separate reporting of activities

III. Specific IRS challenges to S corporations

IV. Nonresident aliens as ESBT beneficiaries

V. QBI calculations and reporting

VI. Section 1371(f) regulations

VII. Other S corporation developments

The panel will review these and other key issues:

  • Updating basis schedules to prepare for IRS challenges
  • Calculating and reporting QBI flow-through items
  • Handling separate reporting of activities
  • Current court cases and challenges to S corporations

Learning Objectives

After completing this course, you will be able to:

  • Determine when establishing an ESBT could benefit an S corporation
  • Decide when to report activities separately
  • Ascertain when to include basis schedules in Form 1120-S
  • Identify where to report QBI items on Schedule K
  • 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.


BARBRI, 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

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

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .