Navigating Tax Compliance: Form 8867 Due Diligence Challenges and the 3 Goals of Federal Tax
Registration Begins 07:30 AM PT
Session Begins 08:00 AM PT
Session Concludes 1:00 PM PT
Session 1: Form 8867 and the Challenges of Performing Due Diligence
This program will provide Tax Professionals at all levels with a step-by-step review on how to properly prepare individual income tax returns that include specific individual tax credits, and filing status issues, required for the proper preparation of Form 8867. The session will address the ABCs of:
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§24 Child Tax Credit,
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§24 Credit for Other Dependents,
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§25A American Opportunity Credit,
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§32 Earned Income Tax Credit, and
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§2(b) Head of Household filing status.
The presentation will also address §6695(g) penalties for the “failure to perform due diligence”. The session will discuss guidance on “how to steer clear of mistakes” in dealing with these credits and the eligibility rules. Form 8867and its’ instructions will be reviewed.
Session 2: Exclusion, Deferral and Preferential Rates: The 3 Goals of Federal Tax
This course introduces Tax Professional to the “3 main goals” of federal income taxation and the understanding of minimizing tax. The course addresses provisions pertaining to transactions where tax will “never” be paid such as with:
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Contributions to Roth IRAs,
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Contributions to Employer Designated Roth Accounts,
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§121 exclusion on the sale of a principal residence,
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§1014 Basis Increases of a Decedent,
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Dispositions of “Qualifying §1202 Stock”.
The course will discuss the importance of investing in:
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529 Plans,
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§530 Coverdell Plans,
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§529A ABEL Plans, and
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Other investments which provide “exclusion” from federal income tax.
The session reviews provisions pertaining to paying the tax in any year “except” the current year such as:
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Contributions to deductible IRAs,
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Deferral contributions to employer pension plans,
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§1031 Like-Kind exchanges of real estate, and
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§453 installment sales of capital assets.
In addition, the session discusses “preferential income tax rates” on the:
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Sale of capital assets owed longer than one-year, and on
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“Qualified dividends” on stock and securities held during the “applicable holding period”.
The course will also discuss the favorable rates available on §1250 “unrecaptured depreciation” on the sale of qualifying real property.
Session 1:
At the conclusion of the session, Tax Professionals will have been better prepared to understand the due diligence issues concerning the proper preparation of Form 8867 and the avoidance of the due diligence penalties under §6695(g). Tax Professional will be better equipped to advise clients as to eligibility for credits and filing status, and protect themselves from failure to properly retain records pertaining to Form 8867 preparation issues
Session 2:
At the conclusion of the session, participants will have a better understanding of minimizing federal income tax by implementing the “3 main goals of exclusion, deferral and preferential rates” and they will be better equipped to advise their clients on making the minimal payment of tax, by properly planning their investment and retirement transactions.
- Special Topics Course Disclaimer
Special Topics Disclaimer
- Special Topics materials and Special Topics presentations are intended to stimulate thought and discussion and to provide attendees useful ideas and guidance in the areas of federal taxation and administration. These materials as well as the comments of the instructors do not constitute and should not be treated as tax advice regarding the use of any tax procedure, tax planning technique, device or suggestion, or any of the tax consequences associated with them.
- Although the NSTP has made every effort to ensure the accuracy of the materials and the seminar presentation, neither the author, the presenter nor the National Society of Tax Professionals assumes any responsibility for any individual’s reliance on the written or oral information presented during the presentation. Each attendee should verify independently all statements made in the materials, and during the seminar presentation, before applying them to a particular fact pattern and should determine independently the tax and other consequences of using any device, technique, or suggestion before recommending the same to a client or implementing the same on behalf of a client, or on the attendee’s own behalf.
- Special Topics materials & presentations are fully protected under copyright law. Any attempt to copy for resale, distribution, or use other than personal use for tax preparation will be fully prosecuted of the law.
