- NY Credits : 4.0
- TX Credits : 4.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 4.0
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 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 intermediate level course is most appropriate for the professional with detailed knowledge in C corporation and S corporation taxation or the professional seeking to expand his or her knowledge base and who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.
Upon successful completion of this course, the user should be able to:
identify the differences between book income and taxable income for C corporations reported on Schedule M-1,
determine basic accounting for permanent and temporary differences reported for C corporations on Schedule M-2 and analyze the year's change in unappropriated retained earnings (Schedule M-2),
identify the differences between book income and taxable income for S corporations reported on Schedule M-1, and
identify how to analyze the accumulated adjustments account (AAA), the other adjustments account (OAA), and the shareholders' undistributed taxable income previously taxed (PTI) for S corporations on Schedule M-2.