Business Entity Tax Issues

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Business Entity Tax Issues KLXYD-T-00057-24-O | 2 IRS Credits
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Instructor: Chris Nadeau

State law may allow a partnership or S cor- poration to pay the state and local taxes at the entity level. This chapter explains how the pass-through entity can then deduct the pay- ment from its federal income. The jurisdiction’s tax law provides a corresponding or offsetting owner-level tax benefit, such as a full or par- tial credit, deduction, or exclusion. This chapter also discusses when refundable pass-through entity tax credits may be includable in income under the I.R.C. § 111 tax benefit rule.

After completing this session, participants will be able to perform the following:

  • Understand the federal tax treatment of pass-through entity payments of state and local tax
  • Know when a refund of pass-through entity credits may be included in income under the tax benefit rule
  • Understand the new FinCEN beneficial ownership interest reporting requirements
  • Recognize the actions that can jeopardize the tax-exempt status of an I.R.C. § 501(c) (3) organization
  • Explain how an I.R.C. § 501(c)(3) organization can change its tax-exempt status to a different 501(c) organization
  • Understand what partnerships are eligible to elect out of the centralized partnership audit regime
  • Know the advantages and disadvantages of electing out of the centralized partnership audit regime