Reviewing Partnership Tax Returns: What Are You Missing?

Overview

The partnership section of the Internal Revenue Code is arguably one of the most complicated. That complexity, and the reliability of tax software to properly handle it, can create many issues for you and your staff when processing your client’s LLC and partnership tax returns. In this case study-based course, we discuss the common errors practitioners make on partnership tax returns that review staff often miss. The intent is to sharpen the skills of reviewers by examining four case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires further analysis and information. Matters discussed include income, deductions, K-1 reporting, and K-2 and K-3 reporting.

Objectives

When you complete this course, you will be able to:

Identify the mechanics of a partnership's tax return, including partner capital account calculations and permissible tax years.

Determine the proper allocation of recourse liabilities among partners.

Analyze the consequences of a new partner joining a partnership.

Determine depreciation expense among the contributing and noncontributing partners under Section 704(c).

Determine the value of assets with nonrecourse liabilities.

Highlights

Common errors made involving the following:

Form 1065

Schedules Kand K-1

Schedules M-1 and M-2

Calculating recourse and nonrecourse liabilities

Partner inside and outside basis

Partner's capital account analysis

Sections 704(b), 704(c), 721, 722, 732(b), 734(b), 737, 743(b)

Designed For

Partners and managers in CPA firms - Experienced CPA staff

Prerequisites

Basic knowledge of partnership taxation

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

William Taylor

Leader Bios

William Taylor

WILLIAM F. (Bill) TAYLOR, CPA Water Valley, Mississippi William F. (Bill) Taylor, CPA is President of Lifetime Financial Solutions, LLC, a financial coaching firm, and a CPA in private practice. Since retiring as Community Bank President of Renasant Bank in Water Valley, MS, he has served as an adjunct assistant professor in the MBA program at the University of Mississippi. Bill has worked in the employee benefit and investment fields for over 25 years, beginning his career as the Employee Benefits Coordinator in the Jackson, MS, office of KPMG Peat Marwick and managing his own firm since 1999. A nationally known consultant and speaker, Bill has conducted seminars for the American Institute of Certified Public Accountants, the American Society of Pension Professionals & Actuaries, CPA and bar associations in 45 states, and many private organizations. He has been awarded both the AICPA Outstanding Discussion Leader award and the James L. McCoy Discussion Leader of the Year Award from Surgent CPE. Bill is the author of Taxation of Employee Benefits Volume I and Volume II, and his articles have appeared in numerous publications.

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