ERTW
EFFECTIVELY AND EFFICIENTLY REVEWING TAX RETURNS IN BUSY SEASON
The purpose of this course is to teach professional tax staff how to properly review various tax returns for accuracy and appropriateness of tax positions taken on a return. Major Topics
- Reviewing a Form 1040
- Engagement letters , source documents, and questionnaires
- First time client issues and extra scrutiny
- Software diagnostics review
- Reviewing input of source documents through the return
- Checklists of issues that must be examined on each of the major schedules of a 1040 return
- Schedules you want your staff to prepare to make your review easier
- Reviewing Form 1120S
- Reviewing last year’s form for recurring items, such as bad debt reserves and depreciation differences
- Accrued salary to over 50% shareholders and economic performance issues
- Reconcile book to tax income differences independently for Schedule M-1 and review trial balance
- Important issues to watch out for when using trial balance software
- Reviewing schedules, such as depreciation, etc.
- Reviewing all carry-forwarded information
- AAA issues, basis, distributions, and K-1 issues
- Disability and health insurance issues
- Reviewing Form 1065: same issues as 1120S but with the following differences:
- Reviewing the partnership or LLC agreement
- Allocation of debt, profits and losses, capital interests, special allocations
- Special tax workpaper issues: 704(c) issues, 754 step-up, special allocations
- K-1 issues
Learning Objectives
- Understand the process involved in reviewing applicable tax returns
- Identify the most common areas that result in errors
- Document a review including tax positions taken and applicable disclosure
Designed For: Experienced tax professionals who are charged by their firms with reviewing returns
Level of Knowledge: Intermediate
Prerequisites: Extensive experience in preparing forms 1040, 1120S and 1065
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