This course is specifically for Enrolled Agents that need to report to the IRS.

2 Credits

This course examines and explains the basics of corporate taxation. The focus is on regular or C corporations, their formation, and operation under tax law. The advantages and disadvantage of corporations are examined; incorporation and capitalization issues are discussed; and, basic tax rates and specialty taxes are reviewed. The tax treatment of operational expenses and deductions are outlined; and accounting periods and methods are explored. Finally, the dangers of multiple corporations and corporate distributions are highlighted.

Learning Assignment & Objectives

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

ASSIGNMENT

At the start of the materials, participants should identify the following topics for study:

• Corporation defined
• PSC corporations
• Incorporation
• Small business stock exclusion
• Start-up & organizational expenses
• Alternative minimum tax
• Capital gains & losses
• Accumulated earnings
• Accounting periods & methods
• Inventories

Learning Objectives

After reading the materials, participants will be able to:

1. Recognize the key elements of regular corporations, explain their advantages and disadvantages, including tax treatment and tax advantages and disadvantages, and how to distinguish them from PSC corporations.
2. Direct clients on §351 requirements for tax free incorporation, explain the impact of the transfer of money, property or both by prospective shareholders pointing out the availability of §1244 for stock losses and §195 amortization of start-up expenditures.
3. Compute corporate alternative minimum tax recognizing the small corporation exemption, explain the corporate tax consequences of capital gains and losses, and describe several ways to avert the accumulated earnings trap noting the potential use of the accumulated earnings credit.
4. List accounting periods and methods available to corporations describing the tax consequences of liquidating property distributions.

Revision Date: 2/2/2024

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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