General
Taxed as entity distinct from the shareholders and taxed at flat rate 21%.
Corporation
Which tool we will use to prepare the workpapers?
CCH Engagement or Standard Workpaper.
Fines and Penalties
Temporary Difference or Permanent Difference?
Permanent Difference
Froms to fill for below tax-payers
1. Corporation
2. Partnership
3. S Corp
4. Individuals/Sole Proprietorship
1. 1120
2. 1065
3. 1120S
4. 1040
Name 3 XCM status
Preparation, Review, Open Review Points etc.
Mention the different types of Entities and their due dates
1120 : 15th day of 4th month*
1120S: 15th day of 3rd month*
1065 : 15th day of 3rd month*
*(From the last day of the Calendar/Fiscal year. If it's a holiday then the due date is the next working day).
Which of the below Go-system Account Number is related to India.
Account: WJ7C
Club Dues
Favorable ADJ or Unfavorable ADJ?
Unfavorable
These parts must be completed in form M3 if total assets are greater than 10 million but less than 50 million
Part I
Name 3 specific applications we use to complete Tax Return.
Go Systems
CCH Engagement
Withum Standard Workpapers
Calculate Gain/(Loss)
Cost: $50,000
MACRS Accumulated Depreciation: $30,000
Selling Price: $14,000
Loss -$6,000
First thing to do when we while opening or while closing Binder.
Synchronize
Book Income = 75k
Fines & Penalties = 5k
Tax Depreciation = 10k
Book Depreciation = 5k
Taxable Income = 75k
Match the Following:
M-1:Analysis of Partners’ Capital Accounts
M-2: Net Income (Loss) Reconciliation for Certain Partnerships
M-3: Reconciliation of Income (Loss) per Books With Analysis of Net Income (Loss) per Return
M-1:Reconciliation of Income (Loss) per Books With Analysis of Net Income (Loss) per Return
M-2: Analysis of Partners’ Capital Accounts
M-3: Net Income (Loss) Reconciliation for Certain Partnerships
Rearrange the following to complete TR process
GS updates, Book to tax adjustments, Import CCH file to GS, print to pdf, self-review, TB, AJE & RJE.
TB, AJE & RJE >>Book to tax adjustments>>Import CCH file to GS>> GS updates>>print to pdf>> self-review
5 Things to make sure when you get a Trial Balance.
$ US
Descriptions & Balances in proper format.
Related to working entity
Foots to Zero
Debit/Credit balance
What are details required to input asset details into the Go Systems and How Navigate?
Date place in service, Descriptions, Cost, Life, Deprecation Method.
Organizer >> Income & Deduction>> Deduction>> General Depreciation & Amortization>> Asset Details>> + Add Asset.
Name 1 Book to Tax Adjustment each for the below
1. Unfavorable Income
2. Unfavorable Expenses
3. Favorable Income
4. Favorable Expenses
Gain on sale of Assets higher than book.
Meals and Entertainment
US Municipal Bond Income
Tax Dep higher than Book Dep
Either 1120 0r 1065 Should be explained by schedules
1120 Pages 1-6
1165 Pages 1-6
Explain Tax Return Life Cycle
Pre-Schedule>>XCM>>Access>>Engagement Kick off>>Extension>>Estimates>>Tax return>>Stop.
Advantages of running Grouping report in CCH Engagement.
To check the categorization of accounts
Self-Review
Reference to Match with Tax return
Preparation of M-3
How will you design the TB in CCH from unadjusted balance to final tax numbers.
(PBC)Unadjusted TB >> AJE's >> Adjusted balance >>RJE's >> Final Balance >> FTJE's >> FTAX Balance.
Tax Income = 10k
Book Depreciation = 50k
Tax Depreciation = 25k
Federal Income Tax = 2k
Book Income = -17k
Name the forms for the description below:
1. Depreciation & Amortization
2. Officers Compensation
3. Cost of goods sold
4. Credit for increasing research activities
5. Sale of Business Property
1. 4562
2. 1125-E
3. 1125-A
4. 6765
5. 4797
4 checkpoints within the tax return (1120/1065).
1120
1. Page 1 FTI with Sch M1
2. Total assets in page 1 with Sch L
3. Page 1 Depreciation with Form 4562
4. Page 1 Dividend income with Sch C
5. FTI in Page 1 with Sch M-3
6. COGS in Page 1 with Form 1125-A
7. Tax due in Page 1 with Letter & Filing instructions
1065
1. Page 1 Income/(loss) with Sch K line 1
2. Total assets in page 1 with Sch L
3. Page 1 Depreciation with Form 4562
4. Sch M-1 book income with Sch M-2 book income
5. FTI in Page 1 with Sch M-3
6. COGS in Page 1 with Form 1125-A
7. Number of partners reported in Page 1 with #s K-1s attached