RTRP 101 – A to Z on How to Prepare... Preparing for the New IRS Required Exam

Transcription

RTRP 101 – A to Z on How to Prepare... Preparing for the New IRS Required Exam
RTRP 101 – A to Z on How to Prepare Tax Returns
Preparing for the New IRS Required Exam
A one day course with group live instruction to educate and train Registered Tax Return Preparers
to properly prepare tax returns for their clients and successfully complete the required RTRP exam
8:00 am
Course Registration and Continental Breakfast
8:20 am
Chairman’s introduction
8:30 am
Know your 1040 – A prerequisite for all preparers
The Income Tax Return - Form 1040
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9:30 am
Determine filing status
Understand various tax payments – withholding/estimated payments/etc.
Determine filing requirements - extensions/amended returns/due dates
Exemptions
Tax Withholding and Tax Estimates
Income Sources – also known as “what is excluded”?
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Determine all sources of taxable and non-taxable income
Self-employment income and expenses (Schedule C Profit or Loss From Business
and Form 1099-MISC, 1099-K, Cash)
Taxation of wages, salaries and tips (Source W-2 Wage and Tax Statement)
Interest Income (Schedule B source 1099-INT)
Dividend Income (Schedule B source 1099-DIV)
Rental Income and expenses (Schedule E), Royalty Income, Partnership Trust
Income (Schedule E source K-1)
Other Income – alimony/pension distributions/government payments/sale of
property/forgiveness of debt as income/etc.
Short and long term capital gains and losses (Schedule D, Form 8949 source
1099-B Proceeds from Broker and Barter Exchange Transactions)
Sale of non-business assets (gains or losses)
Sale of a principal residence (IRS 121 Exclusions, 1099-S Proceeds from Real
Estate transactions) 1034 Exchanges
Distributions from qualified plans source 1099R
Distributions from an IRA source 1099-R
Required minimum distributions from retirement plans Age 70 1/2
10:30 am
Break for Refreshments
10:45 am
Above the Line Deductions – General adjustments to Income
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Determine applicable adjustments to gross income
o self-employed health insurance
o self-employment tax (Schedule SE Self-employment Tax)
o student loan interest
o alimony paid
o Eligible moving expenses (Form 3903 Moving Expenses)
o Tuition and other education deductions (Form 8917, Form 1098T)
Other
Arrive at Adjust Gross Income (AGI)
11:45 pm
Summary and Q&A Session
12:00 pm
Break for Lunch
1:00 pm
Itemized Deductions - How the RTRP Earns their Fee!
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2:00 pm
Issues in Handling Credits – special attention areas
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3:00 pm
Determine standard deduction and Schedule A itemized deductions
Medical and dental expenses
State, local and real estate taxes
Mortgage Interest expenses (Form 1098)
Charitable Contributions (Form 8283)
Work Related (Schedule 2106 tie in)
Other miscellaneous deductions
Limits
Determine applicable credits
Determine qualifying child/relative tests for Earned Income Credit
Child and Dependent Care Credit (Look for flexible spending amounts on Form
W-2)
Credit for Elderly or Disabled
Retirement Savers Contribution Credit (Form 8880)
Child Tax Credits and additional child tax credits
Education Credits (family credits – Form 8863)
Earned Income Tax Credit – the latest reporting rules (Form 8867)
Other credits
Break for Refreshments
3:10 pm
Computations - Tax Rate Tables and Schedules – Testing Centers are Not
Computer Friendly. Our experts offer a hands-on demonstration
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4:00 pm
Completion of Filing Process
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4:50 pm
Standard allowances
Alternative minimum tax (Form 6251)
Early distributions from retirement plans (Form 5329)
Self-employment tax (Schedule SE)
Unreported Social Security and Medicare Tax (Form 4137)
Repayment of first-time home buyer credit (Form 5405)
Deductions
How much is exemption worth
Completeness and accuracy/Review and explain
Determine record-keeping requirements with taxpayer
Understand timeframe for submitting electronic returns (Form 8879)
Understand payment options
Appropriate use of Form 8867 Paid Preparer’s Earned Income Credit Checklist
and related penalty for failure to exercise due diligence
Understand estimated tax payment requirements including potential for
penalties (Form 1040-ES)
Understand refund options
Providing copy of return to taxpayer
Ethical Issues for all Registered Tax Return Preparers
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Taxpayer Rights
RTRP’s Duties, Responsibilities and Rights
Penalties to be assessed by IRS against preparer for negligent or intentional
disregard of rules and regulations and for a willful understatement of liability
Discuss significance of signing return
Understanding RTRPs responsibilities related to rejected electronic returns
Signing returns and furnishing identifying PIN numbers
Rules for the RTRP for keeping copies and/or lists of returns prepared
Compliance with e-file procedures
Completion and use of Form 2848 Power of Attorney and Declaration of
Representative and Form 8821 Tax Information Authorization
Safeguarding taxpayer information
5:30 pm
Summary and Q&A
5:45 pm
Course Concludes