Correcting Capital Account Mistakes and Errors on Partnership Returns

A Comprehensive Guide to Corrections, Allocations and "True-Ups" of Capital Accounts

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, April 25, 2017
Recorded event now available


This webinar will provide tax professionals and advisers with a deep and highly practical guide to the accounting and tax disclosure requirements necessary to correct and adjust capital account balances. The panel will focus on the mechanics of both book entries and tax reporting, and will offer concrete examples of corrective entries and form reporting as illustrations. The webinar will also cover interpretation of partnership agreements and offer guidance on how to apply partnership provisions to corrective entries and tax disclosures.

Description

Maintenance of capital accounts is one of the more challenging tasks for tax professionals advising partnerships. Due to inexperience, changes in advisers, and/or errors and omissions, capital accounts are often not maintained accurately. Unless corrections and adjustments are made, such items can lead to misallocation, phantom income and basis errors.

Even more frustrating is that in many cases the corrective adjustments to bring the accounts back into balance are not always clear. Moreover, these issues will become even more challenging with the advent of the new partnership audit rules.

Partnership accounting is by its very nature complicated, and there are a number of transactions and events that cause difficulties in maintaining capital accounts. Provisions such as allocations of nonrecourse liabilities, minimum gain chargebacks, and multistate filings are areas that can create problems for tax professionals. Advisers must be able to identify and correct capital account discrepancies from both compliance and reporting standpoints.

Listen as our experienced panel provides an overview of common—and not so common—capital account errors and scenarios that need corrective measures, and will outline the book and tax reporting adjustments to remedy the situations.

Outline

  1. Partnership agreement interpretation
  2. Identifying capital account misstatements
  3. Book entries
  4. Tax reporting and disclosures
  5. Interaction with new partnership audit rules
  6. Case study with illustrations

Benefits

The panel will discuss these and other critical issues:

  • How to identify errors, miscalculations or misstatements in capital accounts
  • Corrections in instances of incorrect mandatory adjustments
  • Basis and capital account corrections where a valid Section 754 election was in place
  • Book vs. tax corrective adjustments
  • Prior year adjustments
  • Effect of new partnership audit rules

 

Learning Objectives

After completing this course, you will be able to:

  • Identify the capital account maintenance rules and errors in maintaining capital accounts.
  • Distinguish book capital accounts and tax capital accounts.

  • Ascertain the compliance and audit requirements post-TEFRA.

  • Recognize necessary adjustments to correct capital accounts and adjustments that might trigger an audit.

  • Determine if a partnership is eligible to elect out of the new audit rules.

  • Verify that the substantial economic effect test is met.

Faculty

Steve R. Johnson, Professor
Florida State University, Tallahassee, Fla.

Mr. Johnson is a nationally recognized scholar on tax litigation and procedure, including legislative and administrative law topics in tax. Among other courses, he teaches Income Taxation, Taxation of Business Entities, Business Planning, International Tax and Administrative Law. His publications include two casebooks, Civil Tax Procedure (2d ed., Lexis-Nexis 2008) and Tax Crimes (Lexis-Nexis 2008), as well as numerous articles on tax procedure and tax law. He previously practiced tax law, after which he served as a senior attorney with the IRS Chief Counsel’s Office and a Special Assistant United States Attorney.

Joseph C. Mandarino, Partner
Smith Gambrell & Russell, Atlanta

Mr. Mandarino's practice focuses on corporate, tax and finance law. He is involved with a wide variety of businesses and transactions, including experience with compliance, planning and M&A activities for partnerships, individuals and corporations. Mr. Mandarino writes and speaks extensively on a wide range of business, tax and finance topics.


EA Credit

Enrolled Agent credit processing is available for an additional fee per person.

EA Processing $5.00


Recordings

CPE On-Demand

Includes video streaming of full program plus handouts (available within a week of the live webinar).

Strafford is a NASBA-approved CPE provider for On-Demand webinars.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: Printing and reviewing Program Outlines and materials.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: QAS Self-Study.
  • Prerequisite: 

    Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules. Specific knowledge of partnership taxation, accounting and tax disclosure requirements, capital account maintenance, correcting capital account mistakes and partnership audits; familiarity with book and tax corrective adjustments, compliance post-TEFRA, and substantial economic effect. 

On-Demand Webinar & CPE Processing $182.00


Recorded Event

Includes full event recording plus handouts.

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $147.00

How does this work?

Recorded Audio Download (MP3) $147.00

How does this work?

DVD (Slide Presentation with Audio) $147.00 plus $9.45 S&H

How does this work?


NASBA CPE Sponsor

National Registry of CPE Sponsors

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Program Materials

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Program Materials

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CPE Credit

Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

or call 1-800-926-7926

EA Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 enrolled agent (EA) credit hours.

or call 1-800-926-7926

Customer Reviews

The conference was technical, informative and presented at a good pace.

Krystal Ching

KMH

Excellent seminar! It was efficient and the important topics were covered at just the right pace; no time was wasted covering information that the participants already knew.

Rhonda G. Williams, CPA

Barraclough & Associates

I purchased the conference a few minutes after it began and the customer service rep was very helpful and got me signed up and logged into the conference very quickly.

Joanna Johnston

Savas Greene & Company

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

I loved the tools and handouts. Every CPE class should offer these kind of tools.

Jackie Meyer

Sample and Bailey

or call 1-800-926-7926

Our Guarantee

Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.