RTRP 101 – A to Z on How to Prepare Tax Returns Preparing for the New IRS Required Exam A one day course with group live instruction to educate and train Registered Tax Return Preparers to properly prepare tax returns for their clients and successfully complete the required RTRP exam 8:00 am Course Registration and Continental Breakfast 8:20 am Chairman’s introduction 8:30 am Know your 1040 – A prerequisite for all preparers The Income Tax Return - Form 1040      9:30 am Determine filing status Understand various tax payments – withholding/estimated payments/etc. Determine filing requirements - extensions/amended returns/due dates Exemptions Tax Withholding and Tax Estimates Income Sources – also known as “what is excluded”?              Determine all sources of taxable and non-taxable income Self-employment income and expenses (Schedule C Profit or Loss From Business and Form 1099-MISC, 1099-K, Cash) Taxation of wages, salaries and tips (Source W-2 Wage and Tax Statement) Interest Income (Schedule B source 1099-INT) Dividend Income (Schedule B source 1099-DIV) Rental Income and expenses (Schedule E), Royalty Income, Partnership Trust Income (Schedule E source K-1) Other Income – alimony/pension distributions/government payments/sale of property/forgiveness of debt as income/etc. Short and long term capital gains and losses (Schedule D, Form 8949 source 1099-B Proceeds from Broker and Barter Exchange Transactions) Sale of non-business assets (gains or losses) Sale of a principal residence (IRS 121 Exclusions, 1099-S Proceeds from Real Estate transactions) 1034 Exchanges Distributions from qualified plans source 1099R Distributions from an IRA source 1099-R Required minimum distributions from retirement plans Age 70 1/2 10:30 am Break for Refreshments 10:45 am Above the Line Deductions – General adjustments to Income    Determine applicable adjustments to gross income o self-employed health insurance o self-employment tax (Schedule SE Self-employment Tax) o student loan interest o alimony paid o Eligible moving expenses (Form 3903 Moving Expenses) o Tuition and other education deductions (Form 8917, Form 1098T) Other Arrive at Adjust Gross Income (AGI) 11:45 pm Summary and Q&A Session 12:00 pm Break for Lunch 1:00 pm Itemized Deductions - How the RTRP Earns their Fee!         2:00 pm Issues in Handling Credits – special attention areas          3:00 pm Determine standard deduction and Schedule A itemized deductions Medical and dental expenses State, local and real estate taxes Mortgage Interest expenses (Form 1098) Charitable Contributions (Form 8283) Work Related (Schedule 2106 tie in) Other miscellaneous deductions Limits Determine applicable credits Determine qualifying child/relative tests for Earned Income Credit Child and Dependent Care Credit (Look for flexible spending amounts on Form W-2) Credit for Elderly or Disabled Retirement Savers Contribution Credit (Form 8880) Child Tax Credits and additional child tax credits Education Credits (family credits – Form 8863) Earned Income Tax Credit – the latest reporting rules (Form 8867) Other credits Break for Refreshments 3:10 pm Computations - Tax Rate Tables and Schedules – Testing Centers are Not Computer Friendly. Our experts offer a hands-on demonstration         4:00 pm Completion of Filing Process         4:50 pm Standard allowances Alternative minimum tax (Form 6251) Early distributions from retirement plans (Form 5329) Self-employment tax (Schedule SE) Unreported Social Security and Medicare Tax (Form 4137) Repayment of first-time home buyer credit (Form 5405) Deductions How much is exemption worth Completeness and accuracy/Review and explain Determine record-keeping requirements with taxpayer Understand timeframe for submitting electronic returns (Form 8879) Understand payment options Appropriate use of Form 8867 Paid Preparer’s Earned Income Credit Checklist and related penalty for failure to exercise due diligence Understand estimated tax payment requirements including potential for penalties (Form 1040-ES) Understand refund options Providing copy of return to taxpayer Ethical Issues for all Registered Tax Return Preparers           Taxpayer Rights RTRP’s Duties, Responsibilities and Rights Penalties to be assessed by IRS against preparer for negligent or intentional disregard of rules and regulations and for a willful understatement of liability Discuss significance of signing return Understanding RTRPs responsibilities related to rejected electronic returns Signing returns and furnishing identifying PIN numbers Rules for the RTRP for keeping copies and/or lists of returns prepared Compliance with e-file procedures Completion and use of Form 2848 Power of Attorney and Declaration of Representative and Form 8821 Tax Information Authorization Safeguarding taxpayer information 5:30 pm Summary and Q&A 5:45 pm Course Concludes