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Ultimate Guide to the REG Section: CPA Exam Blueprint and Study Resources
Area I - Ethics, Professional Responsibilities and Federal Tax Procedures (10-20%)
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Ethics and responsibilities in tax practice | |||||
| 1. Regulations governing practice before the Internal Revenue Service |
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Recall the regulations governing practice before the Internal Revenue Service. | |||
| Article: REG CPA Exam: Understanding the Regulations Governing Practice Before the IRS | |||||
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Apply the regulations governing practice before the Internal Revenue Service given a specific scenario. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Internal Revenue Code and Regulations related to tax return preparers |
|
Recall who is a tax return preparer. | |||
| Article: REG CPA Exam: Understanding the Definition of a Tax Return Preparer or TRP | |||||
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Recall situations that would result in tax return preparer penalties. | ||||
| Article: REG CPA Exam: Example Situations Resulting in Tax Return Preparer Penalties | |||||
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Apply potential tax return preparer penalties given a specific scenario. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| B. Licensing and disciplinary systems | |||||
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Understand and explain the role and authority of state boards of accountancy. | ||||
| Article: REG CPA Exam: Understanding the Role and Authority of State Boards of Accountancy | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| C. Federal tax procedures | |||||
| 1. Audits, appeals and the judicial process |
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Explain the audit and appeals process as it relates to tax matters. | |||
| Article: REG CPA Exam: Understanding the Tax Audit and Appeals Process | |||||
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Explain the different levels of the judicial process as they relate to tax matters. | ||||
| Article: REG CPA Exam: Understanding the Levels of the Judicial Process as it Related to Tax Matters | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Substantiation and disclosure |
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Summarize the requirements for the appropriate disclosure of a tax return position. | |||
| Article: REG CPA Exam: Understanding the Requirements for the Appropriate Disclosure of a Tax Return Position | |||||
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Recall requirements to report foreign bank accounts. | ||||
| Article: REG CPA Exam: Understanding the Requirements to Report Foreign Bank Accounts | |||||
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Identify situations in which disclosure of tax return positions is required. | ||||
| Article: REG CPA Exam: Example Scenarios Where Disclosure of a Tax Return Position is Required | |||||
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Identify whether substantiation is sufficient given a specific scenario. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 3. Taxpayer penalties |
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Recall situations that would result in taxpayer penalties relating to tax returns. | |||
| Article: REG CPA Exam: Example Scenarios Resulting in Taxpayer Penalties Relating to Tax Returns | |||||
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Identify taxpayer penalties given a specific scenario. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 4. Authoritative hierarchy |
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Recall the appropriate hierarchy of authority for tax purposes. | |||
| Article: REG CPA Exam: Understanding the Appropriate Heirarchy of Authority for Tax Purposes | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| D. Legal duties and responsibilities | |||||
| 1. Common law duties and liabilities to clients and third parties |
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Summarize the tax return preparer’s common law duties and liabilities to clients and third parties. | |||
| Article: REG CPA Exam: Understanding TRP Common Law Duties and Liabilities to Clients | |||||
| Article: REG CPA Exam: Understanding TRP Common Law Duties and Liabilities to Third Parties | |||||
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Identify situations which result in violations of the tax return preparer’s common law duties and liabilities to clients and third parties. | ||||
| Article: REG CPA Exam: Example Scenarios of Violations of a TRP's Common Law Duties and Liabilities to Clients | |||||
| Article: REG CPA Exam: Example Scenarios of Violations of a TRP's Common Law Duties and Liabilities to Third Parties | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Privileged communications, confidentiality and privacy acts |
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Summarize the rules regarding privileged communications as they relate to tax practice. | |||
| Article: REG CPA Exam: Understanding the Rules Regarding Priveliged Communications in Tax Practice | |||||
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Identify situations in which communications regarding tax practice are considered privileged. | ||||
| Article: REG CPA Exam: Example Scenarios Where Communications Regarding Tax Practice are Privileged | |||||
Area II - Business Law (15-25%)
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Agency | |||||
| 1. Authority of agents and principals |
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Recall the types of agent authority. | |||
| Article: REG CPA Exam: Understanding the Types of Agent Authority | |||||
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Identify whether an agency relationship exists given a specific scenario. | ||||
| Article: REG CPA Exam: Example Situations Where an Agency Relationship Exists | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Duties and liabilities of agents and principals |
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Explain the various duties and liabilities of agents and principals. | |||
| Article: REG CPA Exam: Understanding the Duties and Liabilities of Agents and Principals | |||||
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Identify the duty or liability of an agent or principal given a specific scenario. | ||||
| Article: REG CPA Exam: Example Situations to Identify the Duty or Liabilitie of an Agent or Principal | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| B. Contracts | |||||
| 1. Formation |
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Summarize the elements of contract formation between parties. | |||
| Article: REG CPA Exam: Understanding Contract Formation Between Parties | |||||
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Identify whether a valid contract was formed given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios of Contract Formation Between Parties | |||||
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Identify different types of contracts (e.g., written, verbal, unilateral, express, implied) given a specific scenario. | ||||
| Article: REG CPA Exam: Understanding the Different Types of Contracts | |||||
| Article: REG CPA Exam: Example Scenarios to Identify the Different Types of Contracts | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Performance and discharge |
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Explain the rules related to the fulfillment of performance obligations necessary for an executed contract. | |||
| Article: REG CPA Exam: Understanding the Fulfillment of Performance Obligations in an Executed Contract | |||||
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Explain the different ways in which a contract can be discharged (e.g. performance, agreement, and operation of the law). | ||||
| Article: REG CPA Exam: Understanding the Ways a Contract Can Be Discharged | |||||
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Identify whether a contract has been discharged given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios of Whether a Contract Has Been Discharged | |||||
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Identify whether both parties to a contract have fulfilled their performance obligation given a specific scenario. | ||||
| Article: REG CPA Exam: Understanding Whether Both Parties to a Contract Have Fulfilled Their Performance Obligations | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 3. Breach and remedies |
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Summarize the different remedies available to a party for breach of contract. | |||
| Article: REG CPA Exam: Understanding the Available Remedies for the Breach of a Contract | |||||
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Identify situations involving breach of contract given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios Involving a Breach of Contract | |||||
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Identify the remedy available to a party for breach of contract given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios to Identify the Remedy Available for a Breach of Contract | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| C. Debtor-creditor relationships | |||||
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Explain the rights, duties and liabilities of debtors, creditors and guarantors. | ||||
| Article: REG CPA Exam: Understanding the Rights, Duties, and Liabilities of Debtors, Creditors, and Guarantors | |||||
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Explain the rights of debtors and creditors and how property is distributed in bankruptcy proceedings. | ||||
| Article: REG CPA Exam: Understanding the Rights of Debtors and Creditors in a Bankruptcy | |||||
| Article: REG CPA Exam: Understanding How Property is Distributed in a Bankruptcy | |||||
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Explain the difference between a secured and unsecured creditor and the requirements needed to perfect a security interest. | ||||
| Article: REG CPA Exam: Understanding the Difference Between a Secured and Unsecured Creditor | |||||
| Article: REG CPA Exam: Understanding the Requirements to Perfect a Security Interest | |||||
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Identify rights, duties or liabilities of debtors, creditors or guarantors given a specific scenario. | ||||
| Article: REG CPA Exam: Example to Understand the Rights, Duties, and Liabilities of Debtors, Creditors, and Guarantors | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| D. Federal laws and regulations (employment tax, qualified health plans, bankruptcy, worker classifications and anti-bribery) | |||||
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Summarize the federal laws and regulations for qualified health care plans, including required business mandates and premium tax credits. | ||||
| Article: REG CPA Exam: Understanding the Laws and Regulations for Qualified Health Care Plans, Including Mandates and Tax Credits | |||||
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Explain the federal laws and regulations related to employment taxes from both an employer and employee perspective. | ||||
| Article: REG CPA Exam: Understanding the Laws and Regulations Related to Employment Taxes for Both Employers and Employees | |||||
|
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Recall the factors used to determine classification of an employee versus an independent contractor. | ||||
| Article: REG CPA Exam: Understanding the Classification of an Independent Contractor vs an Employee | |||||
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Recall the types of bankruptcy and the requirements for discharge of indebtedness. | ||||
| Article: REG CPA Exam: Understanding the Types of Bankruptcy and the Requirements of Discharge of Debts | |||||
|
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Summarize the federal laws and regulations prohibiting bribery of foreign government officials, including payments made to generate preferential treatment from a foreign government. | ||||
| Article: REG CPA Exam: Understanding the Laws and Regulations Regarding Bribery of Foreign Officials and Preferential Treatment | |||||
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Identify compliance issues with various federal laws and regulations (employment tax, qualified health plans, bankruptcy, worker classifications and anti-bribery) given a specific scenario. | ||||
| Article: REG CPA Exam: Understanding Compliance Issues with Employment Tax Laws and Regulations | |||||
| Article: REG CPA Exam: Understanding Compliance Issues with Qualified Health Plan Laws and Regulations | |||||
| Article: REG CPA Exam: Understanding Compliance Issues with Worker Classification Laws and Regulations | |||||
| Article: REG CPA Exam: Understanding Compliance Issues with Anti-Bribery Laws and Regulations | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| E. Business structure | |||||
| 1. Selection and formation of business entity and related operation and termination |
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Summarize the processes for formation and termination of various business entities. | |||
| Article: REG CPA Exam: Understanding the Formation, Termination, and Legal Characteristics of C Corporations | |||||
| Article: REG CPA Exam: Understanding the Formation, Termination, and Legal Characteristics of S Corporations | |||||
| Article: REG CPA Exam: Understanding the Formation, Termination, and Legal Characteristics of LLCs | |||||
| Article: REG CPA Exam: Understanding the Formation, Termination, and Legal Characteristics of Partnerships | |||||
| Article: REG CPA Exam: Understanding the Formation, Termination, and Legal Characteristics of Sole Proprietorships | |||||
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Summarize the legal characteristics of various business entities. | ||||
| 2. Rights, duties, legal obligations and authority of owners and management |
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Summarize the rights, duties, legal obligations and authority of owners and management. | |||
| Article: REG CPA Exam: Understanding the Rights, Duties, Legal Obligations, and Authority of Owners and Management | |||||
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Identify the rights, duties, legal obligations and authority of owners and management given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios to Identify the Rights, Duties, Legal Obligations, and Authority of Owners and Management | |||||
Area III - Federal Taxation of Property Transactions (5-15%)
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Basis of assets | |||||
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Calculate the tax basis of an asset purchased for use in a trade or business. | ||||
| Article: REG CPA Exam: How to Calculate the Tax Basis of an Asset Purchased for Use in a Trade or Business | |||||
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Calculate the tax basis of an asset converted from personal to business use. | ||||
| Article: REG CPA Exam: How to Calculate the Tax Basis of an Asset Converted from Personal to Business Use | |||||
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Calculate the tax basis of property received as a gift or as an inheritance from a decedent. | ||||
| Article: REG CPA Exam: How to Calculate the Tax Basis of Property Received as a Gift or as an Inheritance from a Decedent | |||||
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Calculate the tax basis of stock acquired through a wash sale. | ||||
| Article: REG CPA Exam: How to Calculate the Tax Basis of Stock Acquired Through a Wash Sale | |||||
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Calculate the basis of intangible assets, including organization costs, start-up costs and loan costs. | ||||
| REG CPA Exam: How to Calculate the Basis of Intangible Assets, Including Organization, Start-up, and Loan Costs | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| B. Cost recovery (depreciation and amortization) | |||||
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Calculate tax depreciation for tangible business property using MACRS, including identification of the applicable recovery period and convention. | ||||
| Article: REG CPA Exam: How to Calculate Depreciation Using MACRS, Including Identifying the Recovery Period and Convention | |||||
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Determine property eligible for a Section 179 deduction. | ||||
| Article: REG CPA Exam: Understanding What Property is Eligible for a Section 179 Deduction? | |||||
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Calculate tax amortization for intangible assets. | ||||
| Article: REG CPA Exam: How to Calculate the Tax Amortization for Intangible Assets | |||||
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Review a tax depreciation and amortization schedule for the current year and supporting documentation, including any source data used to create the schedule, to determine the completeness and accuracy of the expense amounts deducted for tax purposes. | ||||
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of the depreciation and amortization expense reported on a tax return based on the source data used to prepare the return. | ||||
Area IV - Federal Taxation of Individuals (22-32%)
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Gross income (inclusions and exclusions) | |||||
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Calculate the amounts that should be included in an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return, including wages, interest and dividends, guaranteed payments received from a partnership, fringe benefits, income from a qualified retirement plan and punitive damages. | ||||
| Article: REG CPA Exam: How to Calculate Amounts to be Included in a Taxpayer's Gross Income on Form 1040 | |||||
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Calculate the capital gain that should be included in an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return from transactions, including gains from the sale of investments or virtual currencies, assets received as gifts and assets received from a decedent and classify them as long-term or short-term. | ||||
| Article: REG CPA Exam: How to Calculate Capital Gains to be Included in a Taxpayer's Gross Income on Form 1040 | |||||
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Calculate the amounts that should be excluded from an individual’s gross income as reported on Form 1040 – U.S. Individual Income Tax Return, including tax-exempt interest, gifts received and life insurance proceeds. | ||||
| Article: REG CPA Exam: How to Calculate Amounts to be Excluded from a Taxpayer's Gross Income on Form 1040 | |||||
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Calculate the income reported in the year of death for a decedent on Form 1040 – U.S. Individual Income Tax Return. | ||||
| Article: REG CPA Exam: How to Calculate the Income Reported in the Year of a Taxpayer's Death on Form 1040 | |||||
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Review Form 1040 – U.S. Individual Income Tax Return and supporting documentation, including any source data used to create the return, to determine the completeness and accuracy of the gross income reported. | ||||
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of the gross income reported on Form 1040 – U.S. Individual Income Tax Return based on the source data used to prepare the form. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| B. Reporting of items from pass-through entities | |||||
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Use information provided from disregarded and pass-through entities in which an individual has an ownership interest to report an owner’s share of ordinary business income (loss) and separately stated items on an individual’s tax return. | ||||
| Article: REG CPA Exam: How to Report Income from Disregarded and Pass-Through Entities on an Individual's Tax Return | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| C. Adjustments and deductions to arrive at adjusted gross income and taxable income | |||||
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Identify adjustments allowed in the calculation of adjusted gross income given a specific scenario, including a contribution to a qualified retirement plan, contribution to a health savings plan and self-employment expenses. | ||||
| Article: REG CPA Exam: Understanding Adjustments to AGI, Including Retirement and HSA Contributions | |||||
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Identify itemized deductions allowed in the calculation of taxable income given a specific scenario, including medical expenses, qualified residence interest expense, casualty losses, taxes and charitable contributions. | ||||
| Article: REG CPA Exam: Understanding Itemized Deductions When Calculating Taxable Income for an Individual | |||||
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Calculate the qualifying business income (QBI) deduction for federal income tax purposes. | ||||
| Article: REG CPA Exam: How to Calculate the QBI Deduction for Federal Income Tax Purposes | |||||
|
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Review Form 1040 – U.S. Individual Income Tax Return and supporting documentation, including any source data used to create the return, to determine the accuracy of the adjusted gross income and taxable income reported. | ||||
|
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of the adjusted gross income and taxable income reported on Form 1040 – U.S. Individual Income Tax Return based on the source data used to prepare the form. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| D. Loss limitations | |||||
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Calculate the net tax loss allowed on the sale of capital property, including netting of capital gains and losses and capital loss carryforwards. | ||||
| Article: REG CPA Exam: How to Calculate Capital Gains and Losses on the Sale of Capital Property | |||||
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Calculate the amount of ordinary business loss allowed for an individual materially participating in the operations of a pass-through entity with sufficient basis in the entity. | ||||
| Article: REG CPA Exam: How to Calculate the Ordinary Business Loss Allowed from a Pass-Through Entity | |||||
|
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Calculate losses disallowed for tax purposes, such as from a hobby, wash sale or sale of a personal-use asset. | ||||
| Article: REG CPA Exam: How to Calculate Losses Disallowed for Tax Purposes from Hobbies, Wash Sales, or Personal Assets | |||||
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Review Form 1040 – U.S. Individual Income Tax Return and supporting documentation, including any source data used to create the return, to determine the accuracy of the losses reported. | ||||
|
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of the loss limitations reported on Form 1040 – U.S. Individual Income Tax Return based on the source data used to prepare the form. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| E. Filing status | |||||
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Recall taxpayer filing status for tax purposes. | ||||
| Article: REG CPA Exam: Understanding the Types of Taxpayer Filing Status for Tax Purposes | |||||
|
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Recall relationships meeting the definition of dependent for purposes of determining taxpayer filing status. | ||||
| Article: REG CPA Exam: Understanding the Definition of a Dependent for Determining Taxpayer Filing Status | |||||
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Identify taxpayer filing status for tax purposes given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios to Determine a Taxpayer's Filing Status | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| F. Computation of tax and credits | |||||
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Recall and define the difference between a refundable and nonrefundable tax credit. | ||||
| Article: REG CPA Exam: Understanding the Differences Between a Refundable and Nonrefundable Tax Credit | |||||
|
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Recall and define the safe harbor requirements for individual estimated tax payments to avoid penalties. | ||||
| Article: REG CPA Exam: Understanding the Safe Harbor Requirements for Individual Estimated Tax Payments | |||||
|
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Calculate the tax liability based on an individual’s taxable income given a specific scenario, including consideration of the net investment income tax. | ||||
Area V - Federal Taxation of Entities (including tax preparation) (23-33%)
| Skill | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| A. Differences between book and tax income (loss) | |||||
|
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Identify permanent vs. temporary differences to be reported on Schedule M-3 in a given scenario. | ||||
| Article: REG CPA Exam: How to Identify Permanent vs Temporary Differences to be Reported on a Schedule M-3 | |||||
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Calculate the book/tax differences to be reported on a Schedule M-1 or M-3. | ||||
| Article: REG CPA Exam: How to Calculate the Book vs Tax Differences to be Reported on a Schedule M-1 or M-3 | |||||
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Review an entity’s adjusted book trial balance and supporting documentation to identify and calculate possible book/tax differences. | ||||
| Article: REG CPA Exam: How to Review a Trial Balance and Documentation to Find Possible Book vs Tax Differences | |||||
|
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Review a C corporation’s adjusted book trial balance and supporting documentation, including relevant source data used to create the trial balance, to determine the completeness and accuracy of the book/tax differences reported on Form 1120 – U.S. Corporation Income Tax Return. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| B. C corporations | |||||
| 1. Computations of taxable income, tax liability and allowable credits |
|
Calculate taxable income for a C corporation. | |||
| Article: REG CPA Exam: How to Calculate Taxable Income for a C Corporation | |||||
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Calculate the current-year net operating or capital loss of a C corporation, and the limitations on use in the current year. | ||||
| Article: REG CPA Exam: How to Calculate a Corporation's Current Year Net Operating Loss, and Limitations on Using It in the Current Year | |||||
| Article: REG CPA Exam: How to Calculate a Corporation's Current Year Capital Loss, and Limitations on Using It in the Current Year | |||||
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Calculate the credits allowable as a reduction to tax for a C corporation. | ||||
| Article: REG CPA Exam: How to Calculate Allowable Tax Credits to Reduce Taxable Income for a C Corporation | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. State and local tax issues |
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Define the general concept and rationale of nexus with respect to state and local taxation. | |||
| Article: REG CPA Exam: Understanding the Concept and Rationale of Nexus in Regard to State and Local Taxation | |||||
|
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Define the general concept and rationale of apportionment and allocation with respect to state and local taxation. | ||||
| Article: REG CPA Exam: Understanding the Concept and Rationale of Apportionment and Allocation in Regard to State and Local Taxation | |||||
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Calculate state taxable income using the applicable apportionment factors given a specific scenario. | ||||
| Article: REG CPA Exam: Example Scenarios of Calculating State Taxable Income Using Applicable Apportionment Factors | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| C. S corporations | |||||
| 1. Eligibility and election |
|
Recall eligible shareholders for an S corporation for tax purposes | |||
| Article: REG CPA Exam: Understanding Who are Eligible Shareholders for an S Corporation | |||||
|
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Recall S corporation eligibility requirements for tax purposes. | ||||
| Article: REG CPA Exam: Understanding S Corporation Eligibility Requirements for Tax Purposes | |||||
|
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Identify situations in which S corporation status would be revoked or terminated for tax purposes. | ||||
| Article: REG CPA Exam: Understanding Situations Where S Corporation Statues Would be Revoked or Terminated | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Determination of ordinary business income (loss) and separately stated items |
|
Calculate ordinary business income (loss) and separately stated items for an S corporation for tax purposes. | |||
| Article: REG CPA Exam: How to Calculate Ordinary Business Income or Loss and Separately Stated Items for S Corporations | |||||
|
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Calculate the impact of current year operations on an S corporation’s accumulated adjustments account. | ||||
| Article: REG CPA Exam: How to Calculate the Impact of Current Year Operations on an S Corporation's Accumulated Adjustments Account | |||||
|
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Review federal Form 1120S – U.S. Income Tax Return for an S Corporation and supporting documentation, including any source data used to create the return, to determine the completeness and accuracy of the classification of items as ordinary business income (loss), separately stated or nondeductible. | ||||
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of the ordinary business income (loss) and separately stated items reported on Form 1120S – U.S. Income Tax Return for an S Corporation based on the source data used to prepare the form. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 3. Basis of shareholder’s interest |
|
Calculate a shareholder’s stock basis in an S corporation for tax purposes resulting from business operations, cash contributions by the shareholder and cash distributions to the shareholder. | |||
| Article: REG CPA Exam: How to Calculate a Shareholder's Stock Basis in an S Corporation | |||||
|
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Calculate changes in a shareholder’s debt basis in an S corporation resulting from current year repayment of debt. | ||||
| Article: REG CPA Exam: How to Calculate Changes in a Shareholders Debt Basis in an S Corporation from Repayment of Debt | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| D. Partnerships | |||||
| 1. Determination of ordinary business income (loss) and separately stated items |
|
Review federal Form 1065 – U.S. Return of Partnership Income and supporting documentation, including any source data used to create the return, to determine the completeness and accuracy of the classification of items as ordinary business income (loss), separately stated or nondeductible. | |||
| Article: REG CPA Exam: How to Calculate Ordinary Business Income or Loss and Separately Stated Items for a Partnership | |||||
|
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Review federal Form 1065 – U.S. Return of Partnership Income and supporting documentation, including any source data used to create the return, to determine the completeness and accuracy of the classification of items as ordinary business income (loss), separately stated or nondeductible. | ||||
|
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Review and resolve discrepancies identified by automated diagnostic and validation checks to ensure the completeness and accuracy of ordinary business income (loss) and separately stated items reported on Form 1065 – U.S. Return of Partnership Income based on the source data used to prepare the form. | ||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| 2. Basis of partner’s interest |
|
Calculate the partner’s basis in a partnership for tax purposes resulting from business operations, cash contributions by a partner, cash distributions to a partner and changes in existing partnership liabilities. | |||
| Article: REG CPA Exam: How to Calculate a Partner's Basis in a Partnership for Tax Purposes | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| E. Limited liability companies | |||||
|
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Recall the tax classification options for a limited liability company for tax purposes. | ||||
| Article: REG CPA Exam: Understanding the Tax Classification Options for a Limited Liability Company for Tax Purposes | |||||
| Content group/topic | Remembering & Understanding | Application | Analysis | Evaluation | Representative Task |
| F. Tax-exempt organizations | |||||
|
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Recall the different types of tax-exempt organizations for tax purposes. | ||||
| Article: REG CPA Exam: Understanding the Different Types of Tax-Exempt Organizations for Tax Purposes | |||||