S-Corporations – Pen to Paper Preparation of Form 1120-S and Related Forms

S-Corporations – Pen to Paper Preparation of Form 1120-S and Related Forms : 

Moving from a corporate trial balance to a perfectly reconciled IRS Form 1120-S can be a daunting, error-prone task. Without a clear framework, matching operational book data to the rigid pages of an S-Corporation return often leads to costly math errors, mismatched K-1s, and unexpected IRS notices.

Whether you are a tax professional wanting to understand the underlying mechanics beneath your tax software, or an ambitious business owner preparing your own return, this deep-dive webinar removes the guesswork. We will go "pen-to-paper," stripping away automated software shortcuts to look at the exact mechanics of Form 1120-S.You will learn exactly how to map a profit and loss statement to Page 1, handle complex pass-through items on Schedule K, balance the books on Schedule L, and confidently execute tricky M-1 and M-2 reconciliations.

This course will reflect the most current regulations and guidance. Any updates or changes to relevant laws or requirements will be fully incorporated into the content to ensure accuracy and compliance.

Learning Objectives :- 

1. Discuss the latest filing requirements for Form 7203 and identify errors on the form.
2. Utilize a sample Form 7203 with detailed calculations for both stock and loan basis.
3. Discuss the tax preparer's strict obligations and compliance responsibilities for filing Form 7203 for S Corp shareholders.
4. Explain potential exposure issues with Form 7203, including how to uncover and correct substantial COVID-19 relief basis errors.
5. Prepare Form 7203 correctly by following the IRS instructions for each section.
6. Exactly how to translate your trial balance, P&L, and balance sheet onto Page 1 and Schedule L.
7. Apply the basis ordering rules for losses, deductions, and distributions.
8. Report carryover losses and other deductions limited by shareholder basis.
9. Reconstruct shareholder basis when historical records are incomplete or inaccurate.
10. How to correctly report W-2 officer compensation vs. regular employee wages to meet IRS scrutiny.
11. The exact formulas to flow collective corporate income, deductions, and credits seamlessly down to individual shareholder K-1s.
12. Step-by-step guidance on Schedule M-1 (book-to-tax adjustments) and Schedule M-2 (tracking the Accumulated Adjustments Account for tax-free distributions).
13. When you must trigger and attach Form 1125-A, Form 1125-E, and Form 4562.
14. Understand the tax preparer's responsibilities and potential exposure when preparing Form 7203.

Area Covered in this session :-

1. Understanding the structure and filing requirements of Form 1120-S
2. Step-by-step, pen-to-paper preparation of Form 1120-S
3. Completing the related schedules, statements, and supporting forms
4. Understanding how to report income, deductions, credits, and other key items
5. Proper treatment of shareholder information and allocations
6. Reviewing common S-Corporation tax reporting considerations
7. Identifying common errors and areas requiring special attention
8. Practical guidance for preparing an accurate and complete S-Corporation tax return

Who Should Attend?

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

Credits and Other information:

• Recommended CPE credit – 2.0
• Recommended field of study – Taxes
• Session Prerequisites and preparation: None
• Session learning level: Basic
• Location: Virtual/Online
• Delivery method: Group Internet Based
• IRS CE Provider: #PUPOT
• Attendance Requirement:  Yes
• Session Duration: 2 Hours
• Case Studies and Live Q&A session with speaker
• PowerPoint presentation for reference

Jason Dinesen is the President of Dinesen Tax & Accounting, P.C., a public accounting firm in Indianola, Iowa. His practice focuses on tax and accounting services for small businesses and individuals. Dinesen has extensive experience working with a third-party administrator of retirement plans and is a prior presenter of multiple 1099 seminars. Dinesen majored in corporate communications with a minor in management from Simpson College. He started his practice in 2009.