Gain a better understanding of the fundamental tax concepts of corporations including M adjustments and Form 1120.
U.S. accounting and tax rules are not always the same for reporting corporate income taxes. Form 1120 is used to report many tax issues and disclosures other than the tax on profit and losses. In some cases, the tax disclosure is different due to different methods and limits on income tax reporting. For tax purposes, differences are reported on Schedule M-1 and M-3 to highlight those tax categories. Some differences exist due to tax changes created in the TCJA of 2017 and the CARES Act of 2020. This topic will provide you with an overview of the current corporate tax issues reported for businesses, including reconciling the differences between book and tax income and expenses. The range of topics will include tax elections and methods, changes in income tax rates, and changes in historical income tax deductions and benefits created by the TCJA of 2017 and the CARES Act of 2020.
Learning Objectives
- You will be able to identify accounting and tax rules which create differences in reporting corporate tax.
- You will be able to review U.S. tax compliance issues and requirements for recent changes in tax forms.
- You will be able to explain U.S. benefits and alternatives for choosing a C corporation as a business entity.
- You will be able to recognize year-end strategies and deadlines that will create tax benefits and manage tax reporting issues.
Agenda
Accounting for Corporate Tax
- Definitions and Terms
- Recordkeeping Requirements
- Reporting Book/Tax Differences
- Impact of Methods of Accounting
Identifying Tax Elections and Benefits
- New Tax Rules for Small Businesses
- Tax Issues and Rates for Categories of Business
- Depreciation Impact on Income Tax
- Taxable Exchanges and Inventory Issues
- Nontaxable Income and Net Operating Losses
Identifying Tax Changes From TCJA and Cares Act
- Categories of Expenses May Be Nondeductible
- Interest Expense May Have Limitations
- Paycheck Protection Program and COVID-19 Issues
- Tax Forms Added to Disclose Tax Information
- Foreign Income May Have Credits/Rate Differences
Top Examples and Cases of Corporate Tax Reporting
- Classic New Business With Losses/Startup Issues
- Adding Investors and Capital Contributions
- Compensation vs. Dividend Taxation
- Consolidation of Parent and Subsidiaries
- Mergers and Acquisition Transactions
Speakers
Thomas M. Kosinski, C.P.A., M.S.T.,
Ostrow Reisin Berk & Abrams, Ltd.- Member of tax department at Ostrow Reisin Berk & Abrams, Ltd., since 1994, and became a director in 2001
- Frequent speaker with the Illinois CPA Society covering federal and state tax updates, IRS matters, individual and corporate tax compliance, and flow-through income tax strategies
- Offers more than 25 years of experience providing strategic tax planning and technical advice for individuals and the owners of closely held companies
- Provides specialized tax planning services to his clients, which include high net worth individuals and business entrepreneurs
- Significant industry experience including real estate and commodities/securities
- Researchs and implements a wide range of federal and Illinois tax strategies, and represents numerous Illinois taxpayers during IRS and Illinois Department of Revenue audits
- Consults with firm clients on state and local taxation issues and manages firm issues relating to international taxation
- Assists U.S. based entities in planning for foreign operations as separate entities, branches or divisions
- Active member and a former president of the Illinois CPA Society Chicago South Chapter and a member of the American Institute of Certified Public Accountants
- Contributing author for a tax newspaper column and previously a co-author for a tax savings publication for individual taxation
- M.A. degree in taxation, B.S. degree in accounting, summar cum laude, DePaul University
Who Should Attend
This live webinar is designed for accountants, CPAs, attorneys, CEOs, presidents, vice presidents, CFOs, controllers, financial planners, bookkeepers, business owners, enrolled agents, and tax preparers.
