I. PREPARER
______ 1. Signed engagement/separate privilege tax advice engagement section
______2. Update taxpayer information, filing status and dependents
______3. Review prior year returns, work papers, correspondence, and audit results
______4. Review proforma or tax organizer for accuracy
______5. Complete State Individual Tax Return Checklist
______6. Check for carryovers and include effect of prior period tax audits
______7. Review accounting methods
______8. Properly report adjustments for accounting method changes
______9. Consider filing a power of attorney
______10. Consider if disaster relief provisions apply
______11. Determine if requirements for avoiding penalties for improper disclosure or use of taxpayer information by tax return preparers imposed under §§6713and 7216 have been met
II. INCOME
For sales or other disposition of property consider
______1. Recapture
______2. Installment sales treatment
______3. Taxable/deferred/excluded gain on sale of residence or other property
______4. Holding period/basis
______5. Related party transactions
______6. Like-kind exchanges
Consider the following
______1. Salaries and fringe benefits
______2. Taxability of dividends, interest and capital gain distributions
______3. Ordinary income on market discount bonds and deferral of related interest expense
______4. Annuities, retirement plans, IRAs, Roth conversions
______5. Limitations due to at-risk and basis
______6. Passive loss limitations and election
______7. Alimony
______8. Rents
______9. Tax benefit rules
______10. Discharge of indebtedness
______11. Worthless stock/bad debt
______12. Punitive damages
______13. Exclusion of employer-provided educational assistance
______14. Unemployment Compensation
III. DEDUCTIONS
______1. Home office Form 8829
______2. IRA, SEP, SIMPLE, Keogh, MSA, and HSA contribution
______3. Roth IRA and Education Savings Account
______4. Non-deductible contributions
______5. Moving expenses
______6. Casualty losses
______7. Allocation and limitation of interest
______8. Alimony
______9. Itemized deductions
______10. Contributions
______11. State and local sales tax
______12. Teachers’ classroom expenses
______13. Qualified higher education tuition deduction
______14. Sales, use, or excise tax on qualified vehicles
______15. Consider property tax deduction for non-itemizers
______16. Limit on meals and entertainment and exceptions (Rev. Proc. 2007-63) (Rev. Rul. 2008-23)
______17. File Form 8283 for noncash donations
______18. Consider limitations on deductibility of dues and lobbying expenses
IV. DEPRECIATION/AMORTIZATION
______1. § 179 deduction for new and used equipment up to $500,000
______2. § 179D energy tax deduction election
______3. Additional first-year depreciation up to $150,000
______4. Methods and lives
______5. Listed property
______6. Capitalization of leased property
______7. Qualified leasehold improvement property
______8. Amortization of goodwill and other intangibles
______9. Like-kind exchange and involuntary conversion property rules
______10. Amend returns for tax years after 2002 to elect and/or revoke § 179 elections
______11. Compute AMT depreciation
______12. Compute state depreciation, if different
V. TAX COMPUTATION AND CREDITS
______1. Regular and AMT tax
______2. Self-employment tax and deduction
______3. Credits, carryovers and recaptures
______4. Tax on premature distributions
______5. Claim credit for excess FICA, other withholding/payments
VI. E-FILE
______1. Review software validation, create and print e-file return(s)
______2. Provide taxpayer with complete Federal and state return(s) including Form 8879 and state consent form(s)
VII. OTHER CONSIDERATIONS
______1. Risk of accuracy-related penalty. (§ 6662)
______2. Taxable income and tax to projections.
______3. Report tax shelters. Form 8886
______4. Election to forgo NOL carryback.
______5. Inclusion of child’s taxable income. (Kiddie Tax)
______6. Evaluate estimated tax payment/withholding
______7. Household employee requirements
______8. Other returns like gift and qualified plans
______9. Include/attach extensions
______10. Note planning/additional service suggestions
______11. Consider Circular 230 requirements
______12. Consider third-party service provider notification limitations under Sec. 7216, Rev. Ruling 2010-4 revisions for 2010
______13. Consider accuracy-related penalty regarding “substantial authority” language
______14. Consider elections and required statements and attachments
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