Post Tax-Season To Do: Employee Retention Credit

On IRS 2021 Forms 1065, Schedules K-1 and Instructions, IRS continues to ask for tons of detailed information and they’ve changed up the way they ask for it. In a jolting new move, IRS has made every domestic U.S. Form 1065 preparer responsible to prepare and file Schedules K-2 and K-3 (re: international) (though 99% of the time not relevant) or else do massive new due diligence to sidestep it. This course shows you exactly what to do in response.In a huge new development, IRS released Rev. Procs. 2021-48, -49 and -50 to allow taxpayers the choice to report PPP debt relief income (and, thus, deduct PPP funded expenses) in their tax year of choice. This opens up a tax planning extravaganza.Course OutlineHow new Schedules K-2 and K-3 knock Form 1065 out of orbit (until mid-March of 2022) and impose stunning new duties on a 1065 preparer’s shouldersTweaked (once again) tax basis capital account reporting – What must be computed and disclosed (and by when)Extraordinary new available tax planning: How partnerships (and S Corps) enjoy optional new timing choices for placement of PPP debt relief incomePlethora of other new info required (built-in gains lying in wait, disregarded entity partners, new tiered partnership reporting and more)Learning ObjectivesCapital accounts – Tax basis reporting tweaked again2021 Form 1065 and Schedule K-1 – Reporting requirements in depthDisregarded entity partners – Disclosures, depth of implications3 year average annual gross receipts test – 5 places it mattersBasis in partner’s partnership interest – New timing, timing, timing, timingDisguised sales – Form 1065 question re: partner disclosure§704(c) Built-in gains and loss – New “as-you-go” info requiredAggregation of at-risk activities – Disclosures with sticky implicationsGrouping of passive activities – Disclosure and detail requiredHow every domestic (and foreign) partnership must immediately concern itself with all-new Schedules K-2 and K-3