- NY Credits : 5.0
- TX Credits : 5.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 5.0
Understanding Schedules M-1 and M-2 on Forms 1120 and 1120S
Preparing a Form 1120 or 1120S for the first time can be a daunting experience. Unlike personal income tax returns, the corporate tax return seems similar to a company's financial statements. However, Schedules M-1 and M-2 on page 4 of the tax forms have been known to throw many new tax preparers for a loop. This course will unravel the mysteries of Schedules M-1 and M-2 for C corporations and S corporations. This course is most appropriate for the professional with detailed knowledge in C corporation and S corporation taxation who may be at a mid-level position within an organization.
This course has been updated for the relevant provisions of the Tax Cuts and Jobs Act.
Upon successful completion of this course, the user should be able to:
identify the differences between book income and taxable income,
determine basic accounting for permanent and temporary differences,
recognize changes in unappropriated retained earnings, and
identify how to complete Schedules M-1 and M-2.