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Course Description:

NET OPERATING LOSSES                                                                                           2 CPE

The goal of every business is to make a profit, but losses still occur. The provisions under §172, Net Operating Loss Deduction, are important because tax professionals increasingly find themselves working with clients who are incurring net operating losses (NOLs). Without a basic understanding of NOLs, tax professionals cannot provide their clients with the best possible tax outcome. In addition to NOLs, the IRS analyzes an NOL under alternative minimum tax rules. This course enhances the tax professional’s understanding of NOLs and alternative minimum tax NOLs (ATNOLs).

Upon completion of this course, you will be able to:

  • Determine if a business or individual has incurred an NOL
  • Calculate the amount of the NOL to maximize the amount to carryover
  • Identify when a taxpayer is eligible to make an election to carryover an NOL
  • Identify the provisions of carrying forward the NOL
  • Distinguish between business and nonbusiness income and losses in order to correctly calculate the NOL
  • Define excess business losses
  • Correctly calculate an ATNOL after utilization in intervening years with accuracy and compliance with AMT rules
  • Compute the NOL deduction for each taxpayer

PARTNERSHIPS – FILLING IN THE KNOWLEDGE GAPS                                   2 CPE

In the past couple years, the IRS has added some new line items on Form 1065 and Schedule K-1 that raise several questions.  For example, can or should the partnership elect out of the centralized
partnership audit regime?  If they don’t make the election, what does that mean?  What is §704 (c) gain or (loss)?  Why doesn’t the partner’s basis in the partnership equal their capital account?  In this session, we’ll cover these concepts and more to fill in the gaps with respect to partnerships.

Upon completion of this session, you will be able to:

  • Summarize the tax implications of the centralized partnership audit regime.
  • Identify built-in-gain property under §704 (c) and recognize the potential tax effects.
  • Allocate partnership liabilities.
  • Compare and contrast the partner’s tax basis capital account with their basis in the partnership.
  • Summarize the rules for making a §754 election and the resulting tax consequences.

ETHICS: CYA (COVER YOUR ASSETS)! – TAX OFFICE COMPLIANCE               2 CPE

A successful office will implement operating procedures that establish and validate our tax knowledge and be compliant with Circular 230 while Safeguarding the Taxpayer.

Learn exactly what the IRS expects you to have in place to meet their categories of ’Best Practices’,
’Standards of Practice’, ‘Professional Responsibility’ and ’Professional Conduct’.

The audits of our offices are often resulting in $10K-plus penalties. So, we have choices to make –
continue doing business as usual, which in my mind is like playing the lottery and hope that our office
doesn’t get audited…. or make the necessary changes and show our clients they can trust us and count on us to always provide the latest security for their private and confidential information.

All the tax knowledge in the world is not enough for a successful Circular 230 compliant tax office. It’s not enough to just know how to competently prepare tax returns. You must create a contemporaneous documentation system that will protect you from the IRS preparer penalties.

Paid tax return preparers are held to a higher standard. It is very clear that these standards are
changing, and we need to keep up.

Upon completion of this session, you will be able to:

  • Learn what the IRS expects from ‘Best Practices’ and such phrases used in Circular 230.
  • Identify the areas in your tax office that do and don’t meet Circular 230 Compliance.
  • Establish how to make the changes to your tax office to comply with Circular.
  • 230 Compliance
  • Develop a contemporaneous documentation system that will protect you from the IRS.
  • Preparer penalties
  • Determine your willingness to modify how you do business.

DODGE DOUBLE TROUBLE OF THE 1120S K-1 AND BASIS                              2 CPE

K-1s from an S-Corp simply get entered into our computers matching up with the line items and then

our software does the work right?  Hiding behind the scenes; however, is the Basis Worksheet.  At least there better be one!  The S-Corp K-1 must have its supporting player for this double billing performance.   The tax professional should not put entries from the shareholder’s K-1 on their personal return without

  1. The IRS is making sure of it now with the rules for Schedule E page 2 requiring the Basis Worksheet to be attached to the tax return when four specific circumstances occur regarding the Shareholders’ Basis. Attend this session to learn when basis statements are required, how to compute basis/reconstruct basis and what to do when losses have been claimed when there wasn’t enough basis.

Upon completion of this session, you will be able to:

  • Identify the different entries on the 1120S K-1.
  • Understand what basis is and why it is necessary.
  • Determine whether a potential loss on the K-1 can flow to the individual return.
  • Explain how to reconstruct basis with tips for use in the ‘real world’ office.
  • Use a Basis Worksheet and the flow of it from current year to the next.
  • The tax effects on the shareholder when distributions are received from an S Corporation
  • Calculating the shareholder’s basis in the S corporation.

IS IT A PITFALL OR A PLUS?                                                                              2 CPE 
From the tax viewpoint, should the aging parent deed their home to children?  We often get asked that question by our clients, but do you really know how to answer it?  Like most answers, it starts with “it depends”.

This session will address what happens to the sale of the parents’ home in a couple of different
scenarios and it might surprise you whether you’ve been doing it right in the past.  Let’s look at that
Form 1099-S from a real-world perspective of all parties in this unique situation.

Upon completion of this session, you will be able to:

  • Identify the pros and cons of transferring property with a retained life estate.
  • Determine the value of the life interest and remainder interest.
  • Calculate the sale of life estate property during transferor’s lifetime.

LET’S CHECK THE INNER WORKINGS OF YOUR OFFICE                             2 CPE

In 2018, the IRS expanded its ISAC (Identity Theft Tax Refund Fraud Information Sharing and Analysis Center) to focus on tax preparer security standards.  A major initiative was to ensure better awareness among tax preparers on ways to safeguard against identity theft.  Publication 4557 was updated to assist in these undertakings.  It is believed these efforts will include enforcement and additional education.
They are coming after US again!

Use this session to get a jump-start in making sure your office is prepared!   We’ll take a look at
hardware, software, physical structure, back-ups, emails, thumb drives, security system, cell phones, passwords, cleaning services, computer repair services, copiers, scanners, credit card policies,
appointing security administrator and a written contingency plan.

Upon completion of this session, you will be able to:

  • Develop a written security plan.
  • Establish weak areas in office procedures.
  • Improve management of communications, employees, and taxpayer data.
  • Build a defense system to prevent potential unethical practices.

TAXPAYERS IN TROUBLE – COD                                                                   2 CPE

Forms 1099-C and 1099-A often give the tax professionals a headache.  The taxpayer doesn’t understand them and may have emotional baggage attached to their sources.  Many tax pros are also handling them the wrong way on the tax return.  Let’s look at both forms with the receiver being the individual, small business, corporation, and partnership.  Form 982 could come into play, so we’ll take a look at it, too.
The media and government officials would like us to believe taxpayers are not in as much of a financial crisis and the housing industry breakdown is over, but we know differently as our clients are still coming in with 1099-As and 1099-Cs.

Upon completion of this session, you will be able to:

  • Select relevant information from Forms 1099-A and 1099-C.
  • Identify the proper IRS form on which to report the deemed sale of the foreclosed property.
  • Determine if a taxpayer is insolvent.
  • Explain the tax treatment of cancellation credit card and other consumer debt.
  • Complete Form 982.

ENTITY SELECTIONS & ELECTIONS                                                              2 CPE 
There are several driving forces causing taxpayers to conceive, formulate and establish new businesses.   Many of existing businesses are choosing to change or alter entity types.  Whatever the business decisions are – we can be there for our clients with recommendations, election choices, charts, and tax advice.  Attend this session to reinforce your knowledge many of the advantages and disadvantages between S-Corporations, Partnerships, LLC’s, C Corporations and Sole Proprietorships.  Let’s even take a quick look at the entity types with a QBI consciousness.

Upon completion of this session, you will be able to:

  • List the types of entities that exist.
  • Identify the differences between entity types.
  • Summarize the tax advantages and disadvantages of the entity types.
  • Ascertain potential recommendations of entity elections.

Bio

Melinda Garvin, EA
Galion, OH

Melinda is a tax professional at Foos-Garvin Accounting, Inc. in Ohio and has 30+ years of experience serving individual and businesses tax needs.

Melinda has been an instructor for National Association of Tax Professionals (NATP) for over 10 years, OSU Income Tax School and has served in the past on the Ohio NATP Chapter Board as the Education Director.  Melinda has also been a presenter at the IRS Nationwide Tax Forums and instructed various tax classes for Ohio State Bar Association, State Chapters of NAEA and local organizations.

Melinda’s instructor specialty is in Ethics and Securing Tax Offices; so, to further encourage tax professionals in office ‘best practices’, she authored the manual “Audit Proof the Tax Office” and has since then published a second manual called “Best Practices for the Tax Office”. Melinda has a strong aspiration to support the tax professional’s many sides of interactions with clients, IRS and the always needed education.

Upcoming National Events

NATP Virtual TaxCon                                            

  • August 24th-26th, 2021
  • Register before July 23 to receive discounted pricing

www.natptax.com/taxcon

NATP Tax Forums & Expo 2021 

  • Las Vegas: Sept. 21-22
  • Atlantic City: Sept. 28-29
  • Orlando: Oct. 20-21

www.natptax.com/forums

NATP Tax Season Updates                                 

  • In person event: Starts Oct. 25
  • Virtual Event: Starts Nov. 1

Visit the website for more details – www.natptax.com/update

 

 

 

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