Research and Compliance Issues of Pass-Through Entities

Catalog description

This course highlights the distinct taxation of pass-through entities as a drastically different process than the taxation of either individuals or corporations. Because of the vast number of pass-through entities (partnerships, limited liability corporations, limited liability partnerships, s-corporations, etc.) operating in the United States, this topic is prevalent in practice, on the CPA licensing examination, and the subject of varied interpretations of the law. This course will examine the compliance requirements for the most common pass-through entities and will also serve to introduce the process of performing tax research. Tax research will include a comprehensive introduction and use of primary and secondary tax authorities including the precedent set by each source. A focus on ethical decision-making and interpretation of the law as it relates to planning and executing tax effect strategies will be reviewed. This will include a review of some of the major tax scandals that have impacted the United States (KPMG Stratecon, Inversion Strategies, Enron, Adelphia, Caterpillar Corporation, etc.). An understanding of the role of tax planning and implementation of tax law is significant, but understanding the ethical impact of these decisions is also a responsibility of every accountant. A component of the CPA exam focuses on taxation including pass-through entities. This course will highlight those areas.