ACCOUNTAX SCHOOL OF BUSINESS, INCORPORATED
Instructor: Marlene Murphy, B.S.A., M.S.A, E.A.
Subject: Individual Taxation Preparation Course or EA SEE Test Prep Part I Course # RU73Z-P-00241-16-O
Contact: (708) 720-4547 Phone or (731) 518-4046 Fax
Program Number: RU73ZP00236-15-S
Email: mmurphy@accountax.us
This review course has been designed to incorporate individual topics in tax law, tax theory, and tax updates. The course was designed for students who want to study basic individual taxation or Part I of the Enrolled Agent Review. The material has been updated to reflect the 2019 tax year. Students who complete this course fro individual tax preparation will receive a certificate of completion.
Like to listen to music while studying?
After completing courses, please submit the Course Evaluation.
This Following Information is for Enrolled Agent Review Students Only
If you are aspiring to become and Enrolled Agent, please register for the Enrolled Agent Review Program" and read the following:
Beginning immediately, the IRS will begin allowing continuing education credit for each of the three parts of the Enrolled Agent Special Enrolled ( SEE) test preparation programs. Students may now earn up to five hours of federal tax continuing education credit for preparation of the EA Test for each Parts 1 and 2, and two credit hours of ethics for Part 3. The maximum amount for SEE preparation programs is 12 credit hours.
After competing each Prometric examination, please return to submit the Feedback Form. Changes have been made to the content of the material, per the IRS specifications and for the Prometric Testing beginning May 1, 2018.
According to the Internal Revenue Service Circular 230, 10.6(g), Enrolled Agents and Enrolled Retirement Plan Agents must qualify for the renewal of enrollment. In order to qualify for renewal of enrollment, an individual enrolled to practice before the Internal Revenue Service must certify on the application for renewal form prescribed by the Director of Practice that he or she has satisfied the requirement for continuing professional education. Requirements for enrollment cycle. A minimum of 72 hours of continuing education credit must be completed during each enrollment cycle. A minimum of 16 hours of continuing education credit, including 2 hours of ethics or professional conduct, must be completed during each enrollment year of an enrollment cycle. An individual who receives initial enrollment during an enrollment cycle must complete 2 hours of qualifying continuing education credit for each month enrolled during the enrollment cycle.
Guidelines for Continuing Education for Tax Professionals |
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PART 1 - INDIVIDUALS
Section 1.1 Preliminary Work and Taxpayer Data 15% 1.1 Preliminary work to prepare tax returns |
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| 1 | Use of prior years' returns for comparison, accuracy, and carryovers for current year's return |
| 2 | Taxpayer biographical information (e.g., date of birth, marital status, dependents) |
| 3 | Residency status and/or citizenship (e.g., citizen, visas, green cards, resident alien or non-resident alien) |
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4
5 |
Filing requirements for tax returns
and extensions (e.g., dates)
Taxpayer filing status (e.g., single, MFJ, MFS, QW, HOH) |
| 6 | Sources world-wide taxable and non-taxable income (e.g., interest, wages, business, sales of property, dividends, rental income, flow-through entities, alimony received) |
| 7 | Sources of applicable exclusions and adjustments to gross income (e.g., retirement plans, HSAs, alimony paid, health insurance, moving expenses, self employment tax) |
| 8 | Sources of applicable deductions (e.g., itemized, standard) |
| 9 | Qualification of dependency |
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11 |
Sources of applicable credits (e.g.,
education, foreign tax, retirement, energy, dependent care, credit for
other dependents) Sources of tax payments and refundable credits (e.g., withholding, estimated payments, earned income tax credit) |
| 12 | Previous IRS correspondence with taxpayer |
| 13 | Additional required returns filed and taxes paid (e.g., employment, gifts, internatinal information returns, and information returns) |
| 14 | Special filing requirements (e.g., foreign income, presidentially declared disaster areas, Form 1040-NR) |
| 15 |
Foreign account and asset reporting
(e.g., FBAR, Form 8938)
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| 16 | Minor children's unearned income (Kiddie tax) |
| 17 | ACA Requirements ( e.g., health insurance coverage, total household income, advanced premium tax credit, exemptions) |
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Section 2 Income and
Assets 2.1 Income |
| 1 | Taxability of wages, salaries and other earnings (e.g., earned income, statutory employee) |
| 2 | Interest Income (e.g., taxable and non-taxable) |
| 3 | Dividends and other distributions from mutual funds, corporations, and other entities (e.g., qualified dividends) |
| 4 | Rental income and expenses (e.g., vacation homes, not-for-profit rentals, calculation of depreciation) |
| 5 | Gambling income and allowable deductions (e.g., W-2G, documentation) |
| 6 | Tax treatment of forgiveness of debt (e.g., 1099C, foreclosures) |
| 7 | Tax treatment of a U.S. citizen/resident with foreign income (e.g., individual tax treaties, form 2555) Other income (e.g., scholarships, fellowships, Social Security benefits, barter income, independent contractor income, hobby income, alimony, non-taxable combat pay |
| 8 | Other Income ( Scholarships, Barter, Income, Hobby Income, Alimony, Non-Taxable Combat Pay, Unearned Income, Taxable Recoveries, NOL, Virtual Currency) |
| 9 | Constructive receipt of income (e.g., cash vs. accrual) |
| 10 | Constructive dividends (e.g., payments of personal expenses) |
| 11 | Passive income and loss (e.g., loss limitations) |
| 12 | Pass- Through Entities ( Schedule K-1. Income, Deductions, Basis |
| 13 |
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| 14 | State and Local Income Tax Refund and Other Itemized Deduction Recoveries |
| 15 | 1099 Misc Reporting, Irregularities, and Corrections |
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2. 2 Retirement income |
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| 1 | Basis in a traditional IRA (Form 8606) |
| 2 | Comparison of and distributions from traditional and Roth IRAs |
| 3 | Distributions from qualified and non-qualified plans (e.g., pre-tax, after-tax, rollovers, 1099R) |
| 4 | Excess contributions and tax treatment (e.g., penalties) |
| 5 | Prohibited transactions and tax effects |
| 6 | IRA conversions and recharacterizations (Form 8606) |
| 7 | Required minimum distributions and excess accumulations |
| 8 | Loans from IRC section 401(k) plans and other qualified plans |
| 9 | Taxability of Social Security benefits |
| 10 | Taxability of Unrealized Appreciation ( NUA) |
| 11 | Tax Implications for Inherited Retirement AccountsTaxability of Social Security benefits |
| 12 | Foreign Pensions and Retirement Income |
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2.3 Property: Real and Personal |
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Capital gains and losses (e.g., netting effect, short-term, long-term) |
| 3 | Basis of assets (e.g., purchased, gifted or inherited) |
| 4 | Basis of stock after stock splits and/or stock dividends (e.g., research, schedules, brokerage records) |
| 5 | Publicly traded partnerships (PTP) ( e.g., sales, dispositions, losses) |
| 6 | Sale of a personal residence (e.g., Sec 121 exclusions) |
| 7 | Installment sales (e.g., related parties, original cost, date of acquisition, possible recalculations and recharacterization) |
| 8 | Options (e.g., stock, commodity, ISO, ESPP) |
| 9 | Like-kind exchange |
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Non-business bad debts (e.g.,
documentation required)
Investor versus trader |
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2.4 Adjustments to Income |
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| 1 | Self-employment tax |
| 2 | Retirement contribution limits and deductibility (e.g., earned compensation requirements) |
| 3 | Health savings accounts |
| 4 | Other adjustments to income (e.g., student loan interest, alimony, moving expenses, write-in adjustments) |
| 5 | Self- Employed Health Insurance |
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Section 3: Deductions and Credits 25% 3.1 Itemized deductions |
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| 1 | Medical and dental expenses |
| 2 | Various taxes (e.g., state income, personal property, real estate) |
| 3 | Interest expense (e.g., mortgage interest, investment interest, tracing rules, points) |
| 4 | Charitable contributions (e.g., cash, non-cash, 50% vs. 30%, documentation required) |
| 5 | Nonbusiness casualty and theft losses |
| 6 | Miscellaneous itemized deductions |
| 7 | Employee Travel, Transportation and Entertainment Expenses |
| 8 | Other employee expenses (e.g., education, reimbursement, eligibility, home office) |
| 9 | AGI limitations |
| 10 | Allowed itemized deductions for Form 1040-NR |
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3.2 Credits |
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| 1 | Child and dependent care credit |
| 2 | Child tax credits |
| 3 | Education credits |
| 4 | Foreign tax credit |
| 5 | Earned income tax credit (e.g., paid preparer's earned income credit checklist, eligibility and disallowance) |
| 6 | Retirement contribution credit |
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Adoption credits (e.g., carryovers,
limitations, special needs)
ACA net premium tax credit |
| 9 | Other credits (refundable and non-refundable) |
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Section 4: Taxation and
Advice 20%
4.1 Taxation |
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| 1 | Alternative minimum tax |
| 2 | Credit for prior year minimum tax |
| 3 | Penalties and exceptions on premature distributions from qualified retirement plans and IRAs Wednesday |
| 4 | Household employees |
| 5 | Underpayment penalties and interest |
| 6 | Conditions for filing a claim for refund (e.g., amended returns) |
| 7 | Self employment tax |
| 8 | Excess social security withholding |
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10 11 12 13 14 15 |
Tax provisions for members of the
clergy
Income in respect of decedent ( e.g., allocations Healthcare individual responsibility payment and exceptions Net investment income tax Additional Medicare tax Uncollected Social Security and Medicare tax Other taxes ( e.g., fierst time homebuyer credit repayment) |
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4.2 Advising the Individual Taxpayer |
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| 1 | Reporting obligations for individuals |
| 2 | Property sales (e.g., homes, stock, businesses) |
| 3 | Education planning (e.g., lifetime learning credit, IRC section 529 plans) |
| 4 | Estate planning (e.g., gift versus inheritance, trusts, family partnerships, charitable giving, LTC, life insurance) |
| 5 | Retirement planning (e.g., annuities, IRAs, employer plans, early retirement rules, required minimum distribution, beneficiary ownership) |
| 6 | Marriage and divorce (e.g., divorce settlement, common-law, community property) |
| 7 | Items that will affect future returns (e.g., carryovers, net operating loss, Schedule D, Form 8801) |
| 8 | Injured spouse |
| 9 | Innocent spouse |
| 10 | Estimated tax |
| 11 | Adjustments, deductions, and credits for tax planning |
| 12 | Use of capital gain rates versus ordinary income rates (e.g., character of transaction) |
| 13 | Advantages and disadvantages of MRJ/MFS?HOH filing statuses in various scenarious |
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Section 5. Specialized
Returns for Individuals 15%
5.1 Estate tax |
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| 1 | Gross estate |
| 2 | Taxable estate: calculations and payments |
| 3 | Unified credit |
| 4 | Jointly-held property |
| 5 | Life insurance and taxable estate |
| 6 | Marital deduction and other marital issues |
| 7 | IRAs and retirement plans |
| 8 | Filing requirements |
| 5.2 Gift tax | |
| 1 | Gift-splitting |
| 2 | Annual per donee exclusion |
| 3 | Unified credit |
| 4 | Effect on estate tax (e.g., Generation skipping transfer tax) |
| 5 | Filing requirements |
| 5.3 FBAR | |
| 1 | Filing Requirements and Due Dates |
| 2 | Covered Accounts |
| 3 | Potential Penalties |
| 4 | Distinctions Between FBAR and Form 8938 |
The following material is for your review: