This certificate program explores the items to be considered during a C corporations’ existence. We will explore areas dealing with formation, operation, and liquidation of the entity. Formation items to be included; Check the box rules for LLC’s, IRC 351 tax-free reorganizations, and identifying a controlled group entity. Operating items to be addressed during the C corporations’ existence would include, Initial tax filing year filing elections, such as Accounting Method and tax year, small business exemption for cash basis tax method, completing Schedule L, M1, and M2. We will also review annual compliance of: Shareholder loans, stock redemptions, dividend distributions, and constructive dividends. Review tax compliance of the C corporation due to sale, liquidation, or termination of the entity. Finally, we will work through an 1120 income tax return to apply the items we previously discussed.

• Identify how the C corporation was formed, stock, service, tax-free reorganization or complete a check-the-box election and handle the compliance surrounding these types or formations.
• Identify Section 1202 stock and the related impact of this on the C corporation founders.
• Recognizing the differences between Tax and Book accounting methods and discuss the impact on the companies’ tax liability.
• How to complete Schedule M-1 & M-2 to reconcile retained earnings and Book to Tax Income and impact on future years.
• Document, record and make sure Shareholder loans are compliant with regulation so as to avoid a constructive dividend consequence for the Shareholder.
• Determine the tax consequences and complete filing of the C corporation tax return and reporting in the year of termination or liquidation.
• Converting Theory to Practice by going from tax law to completing the tax return.