Tax Preparation Course Outline

An overview of the tax preparation profession; types of individual and business taxpayers; proper steps in completing tax returns; the Internal Revenue Code; filing status types; common tax forms and schedules; career opportunities.

The nature of gross income; interest and dividend income; alimony; awards, gifts, inheritances and scholarships; accident, life, and health insurance; meals and lodging; municipal bond interest; social security and employee fringe benefits; unemployment.

Rental income and expenses; passive loss limitations; bad debts; inventories; individual retirement accounts; Keogh plans; other retirement plans; rollovers; net operating losses.

Classifying deductions; travel expenses; the home office; entertainment; gifts; education; dues, subscriptions, and publications; clothing and uniforms; Schedule C.

Medical expenses; calculating interest and taxes; contributions; casualty, theft, and hobby losses; other miscellaneous tax deductions.

Earned income; credits for elderly and disabled care, child and dependent care, foreign tax, targeted jobs, and disabled access; the individual alternative minimum tax; unearned income of minor children; community property.

Accounting periods; accounting methods; depreciation; modified accelerated cost recovery system; when to claim an expense; listed property; limitation on depreciation of certain automobiles; intangibles; related parties.

Capital assets; holding period; calculating gain or loss; net capital; section 1231; casualty gains and losses; depreciation recapture; installment and personal residence sales; like-kind exchanges; involuntary conversions.

Methods of withholding taxes; making estimated tax payments; how the FICA and FUTA taxes work; understanding the federal tax deposit system; tax reporting requirements for employers; when to use self-employment tax.

The nature of partnership taxation; partnership formation; partnership income reporting; current distributions and guaranteed payments; tax years; transactions between partners and the partnership; limited liability companies; the at-risk rule.

Corporate tax rates; capital gains and losses; special deductions and limitations; Schedule M-1; controlled groups; filing requirements and estimated tax; S corporations; corporate formation; accumulations; the alternative minimum tax.

The Internal Revenue Service; the audit process; interest and penalties; the statute of limitations; tax practitioners; electronic filing; the taxpayer bill of rights; understanding tax planning.