Virginia Tech Income Tax School

By L. Leon Geyer (geyer@vt.edu), Professor, Agricultural Law, Department of Agricultural and Applied Economics, Virginia Tech

 This year we offer three seminars: 1) Introductory Tax Preparation 2) General Income Tax and 3) CPA Ethics.

1. Introductory Tax Preparation Seminar

Two 1-day seminars offered as live instruction. These seminars are designed for those who wish to prepare tax returns and will focus on IRS form 1040. It is designed for those who are new to taxes, or those who simply seek a refresher course. Those interested can attend in Roanoke on Jan. 4th or Richmond on Jan. 5th. Please refer to www.tax.vt.edu for more information.

2. General Income Tax Seminar

Two days of intensive study of new tax laws, new cases, tax ethics and all topics listed in detail below. Farm tax sessions, a Maryland Tax presentation and CPA Ethics sessions are available at select locations (see Table 1).

Topics Covered in the General Sessions

 1. New tax legislation enacted in late 2014 through 2015:

  • A brief summary of each provision
  • Cross-references to other chapters to help participants find further information on some of the topics
  • A table of effective dates to help participants keep track of when provisions expire

2. Selected new rulings and cases that were issued from September 2014 through August 2015 by the IRS and the courts.

3. The Affordable Care Act with emphasis on the employer mandate and the individual mandate.

Topics include:

  • Marketplace excise tax
  • Controlled groups and affiliated entities
  • Issues for separated spouses and new marriages

4. Implications of the repair and capitalization regulations discussed in the 2014 Tax Workbook including:

  • Accounting policies
  • When and how to file the Form 3115
  • A decision tree to help practitioners comply with the rules

5. Analyze and consult with clients on the following business issues:

  • Net investment income tax grouping considerations
  • Sale of § 1250 property
  • Per diem rules for travel expenses
  • Controlled groups

Be able to deal with the following individual issues:

  • Mortgage interest
  • Schedule K-1 (Form 1041)
  • Gift tax returns
  • Applicable federal interest rates for gifts and loans
  • Innocent spouse rules
  • Virtual currencies
  • Basis and holding period for transferred assets

7. Identify key issues the IRS is targeting for practitioners including:

  • IRS’s “Dirty Dozen” list of tax scams
  • Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
  • Options for disclosing foreign financial assets
  • Trust fund recovery penalty
  • Taxpayer Advocate Service

8. Tax Ethics – Meets Enrolled Agent requirement

9. Address tax practice issues that may be encountered by tax preparers, including but not limited to:

  • Working with incomplete records
  • Pros and cons of extending the statute of limitations
  • What triggers an audit
  • Power of attorney issues
  • How to report tax practitioner misconduct

10. Understand common retirement tax issues including:

  • Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
  • Sale of business followed by retirement
  • Non-qualified annuities
  • Checklist for retirement planning tax issues

11. Better advise clients who own a small business entity as to the following:

  • Selection of business entity
  • Effect of entity selection on taxability of cancellation of debt income
  • Allocation of partnership liabilities among partners or LLC members

12. Deal with the term “trade or business”, which is not defined in the Code, including:

  • Defining allowable deductions under §162, IRC
  • Identifying income subject to self-employment tax under §1402(a)
  • A discussion of cases that define activities that are included in a trade or business and the consequence of not being a trade or business

13. Help your clients with tax planning involving net operating loss issues including:

  • Death of a spouse with an NOL from a joint return
  • Carryover/carryback planning
  • Election out of carryback: effect of low or high taxable income in future years

14. Recognize tax accounting issues such as:

  • The timing of inclusion of income and expenses under the cash and accrual methods
  • The requirements for selecting an overall tax accounting method
  • Whether the method selected for tax reporting must be the same method as the method for bookkeeping
    • Inventory accounting
    • Uniform capitalization (UNICAP)
    • Deferred recognition of income on installment sales
    • Reporting and withholding on employee tips
    • Procedures for changing tax accounting methods

15. Recognize provisions limited by income such as:

  • IRA contributions
  • Student loan interest deduction
  • U.S. savings bond interest exclusion
  • Itemized deductions
  • Personal and dependent exemptions deduction
  • Credits
    • Earned income credit
    • Child tax credit
    • Child and dependent care credit
    • Retirement savings contribution credit
    • Education credits

16. Review topics that affect farmers including:

  • Livestock transactions
  • Farmer net investment income tax issues
  • Inherited property
  • Payments to landowners: oil and gas issues
  • Income tax on farm transfers
  • Commodity Credit Corporation loans

 3. CPA Ethics Seminar: 4:50-6:35 pm.

The CPA Ethics Seminar complies with all ethics requirements for Virginia. This offering can be taken as a stand-alone course or in conjunction with the Two Day Income Tax Seminar.

Details and online registration can be found by visiting www.tax.vt.edu, or by contacting a VT Income Tax School Administrator, Phone: (540) 231-7936, Email: vttax@vt.edu.

For additional registration information please contact the office of the Registrar:

Income Tax School Registrar, Continuing and Professional Education
702 University City Blvd., Virginia Tech, Mail Code 0272
Blacksburg, VA 24061
Fax: (540) 231-3306 Phone: (540) 231-5182                                                                             Web Page: www.tax.vt.edu

 Conference Dates and Locations Table 1

 

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