This program offers practical analysis and expert guidance on a myriad of issues that often face preparers of the domestic corporate income tax return, Form 1120. The material has been organized and arranged in a format that is comparable to Pages 1 through 4 of Form 1120, with an expanded discussion of those areas that are covered by more detailed forms that are typically filed with the basic form. The material also is designed to reinforce understanding of the conceptual framework of the corporate income tax scheme and to go beyond the mechanical aspects of compliance. The textbook discusses certain provisions of the Internal Revenue Code of 1986 (IRC), including amendments made by numerous subsequent tax acts, including the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Job Creation and Worker Assistance Act of 2002 (JCWAA), the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), the Working Families Tax Relief Act of 2004 (WFTRA), the American Jobs Creation Act of 2004 (AJCA), the Energy Tax Incentives Act of 2005, the Katrina Emergency Tax Relief Act of 2005, the Pension Protection Act of 2006, the Tax Relief and Health Care Act of 2006, the Economic Stimulus Act of 2008, the Emergency Economic Stabilization Act of 2008, and the American Recovery and Reinvestment Act of 2009.

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Online
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Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 considers the definition of a corporation and the impact of the "check-the-box" regulations. It explains who must file a return, which of the various types of returns to file, and when the return is due.

Chapter 2 provides an overview of the information items, including accounting periods, consolidated returns, and personal holding companies.

Chapter 3 focuses on the various definitions of a personal service corporation and the special rules that apply to each.

Chapter 4 examines the various types of gross income, ranging from the gross profit on sales to dividends, interest, rents, royalties, and capital gain. It also considers the impact of the passive loss rules.

Chapter 5 addresses the cost of goods sold, the valuation of inventories, and the uniform capitalization rules.

Chapter 6 explores the multitude of deductions that may be available to the corporation, including officers&39; compensation, repair and maintenance expense, amortization of start up costs, expenses for retirement plans and employee benefit programs, travel and entertainment expenses, and the net operating loss. It also considers related issues such as reasonable compensation, employee versus independent contractor status, and capitalization of repair costs. In addition, Chapter 6 analyzes the domestic production activities deduction.

Chapter 7 explains depreciation methods, the luxury auto rules, the IRC §179 expensing election, and amortization.

Chapter 8 takes a look at controlled corporations, the calculation of corporate income tax and the alternative minimum tax, other taxes, the assorted tax credits, and penalties.

Chapter 9 explores the balance sheet, the reconciliation of income per books with income per return, and the analysis of unappropriated retained earnings.

The Appendix explains where to obtain corporate income tax forms that may be used for the current tax year.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this program includes the following designations:

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the taxpayer or the practitioner on behalf of the taxpayer.

A Biskpoint presents analysis or commentary that attempts to explain or clarify statutory or regulatory authority or decisions by the judiciary.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

• Explain general filing requirements for a corporation, including topics such as who must file, when to file, and estimated tax payments

• Discuss information items of Form 1120, such as the accounting period, the filing of consolidated returns, and personal holding companies

• Describe personal service corporations, discussing topics such as passive loss limitations, and the reallocation of income and deductions

• Identify components of gross income, including dividends, interest income, and capital gains

• Complete Schedule A of Form 1120 to compute cost of goods sold

• Explain various deductions available to corporations, such as compensation of officers, bad debts, charitable contributions, employee benefit programs, etc.

• Describe taxes and credits, including the alternative minimum tax, the accumulated earnings tax, the foreign tax credit, and the general business credit

• Discuss depreciation concepts, such as depreciable assets, MACRS, and depreciation under the income forecast method

• Identify various components on the balance sheet and Schedules M-1, M-2, and M-3