Part 3: Understand Additional Schedules Typically Found in Basic Tax Provisions (Currently Unavailable)

Author: Shamen Dugger

CPE Credit:  3 hours for CPAs
3 hours Federal Tax Law for CTEC
3 hours Federal Tax Related for EAs and OTRPs

This course addresses additional schedules and concepts that are found in basic tax provisions beyond the six core schedules.

Research credits, IRC §§ 382/383 tax attribute limitations, ASC 740-10 (previously FIN 48) accounting for uncertainty in income tax, and provision to return true-ups are all additional concepts that typically impact even the most basic tax provisions and, therefore, should be understood at a high level. Specific examples are run through the basic tax provision analysis to observe tax provision specific impacts.

Publication Date: June 2014

Designed For
New Hires in Public Accounting and Industry, Experienced Hires Outside of Core Tax Compliance, Accounting and Finance Students (College and Masters Level) and Taxation Students (JD and LLM Levels).

Topics Covered

  • Uncertain Tax Positions
  • Unrecognized Tax Benefits
  • Research Credits
  • IRC §§ 382/383 Tax Attribute Limitations
  • Provision to Return True-ups

Learning Objectives

  • Recognize high level understanding of the research credit calculation and its tax provision impacts
  • Identify 382/383 tax attribute limitation calculations and their tax provision impacts
  • Recognize ASC 740-10 (previously FIN 48) hotbeds of uncertain tax positions, as well as related calculations and tax provision impacts
  • Describe High Level Research Credit Calculations Relative to the Tax
  • Differentiate High Level IRC §§ 382/383 Tax Attribute Limitations Relative to the Tax Provision
  • Recognize ASC 740-10 (Previously FIN 48) Calculations Relative to the Tax Provision
  • Identify Provision to Return True-ups
  • Differentiate the expenses typically qualifying for federal research credit
  • Identify the number of calculation methods allowed for the federal research credit
  • Recognize the items required to calculate the fixed base percentage
  • Describe what is covered under IRC §§ 328/383
  • Recognize what abuse IRC §§328/383 was enacted to prevent
  • Differentiate the change in ownership percentage results in a change to control triggering IRC §§382/383 limitations
  • Identify what causes need for provision to return true-ups
  • Recognize estimated tax provision amounts requiring subsequent true-up per the tax returns
  • Differentiate tax provision schedules typically not impacted by provision to return true ups
  • Identify the primary categories of investors for IRC §§ 382/383 purposes
  • Describe the 3-year lookback rule for IRC §§ 382/383
  • Recognize a hotbed for uncertain tax positions
  • Identify unrecognized tax benefits reflected
  • Differentiate the footnote disclosures found in ASC 740-10 (previously FIN 48)
  • Describe the financial statement impact of an unrecognized tax benefit and where it's reflected
  • Recognize the correct journal entry for establishing an ASC 740-10 (previously FIN 48) liability
  • Identify results in ASC 740-10 liabilities
  • Identify what is used in calculating the 382/383 tax attribute limitation
  • Recognize what is used in calculating the research credit
  • Describe the impacts of ASC 740-10 if net operating losses have been monetized

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (3 hours)

Program Prerequisites
None

Advance Preparation
None

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