2022 Annual Tax Season Update - Mirrors the IRS-AFTR (Course Id 1842)

Taxes - Taxes for Course Id 1842

Each year, various limits affecting income tax return preparation and tax planning are affected by inflation-related changes. In addition, various laws passed to address the financial consequences of the coronavirus pandemic significantly affect tax planning and may also affect taxpayers’ income tax liability. This course will examine many of those changes. 

The Annual Tax Filing Season Update course discusses new tax law—including various tax extenders—and recent updates for the 2022 filing season, provides a general tax review, and examines important rules governing tax return preparer ethics, practices and procedures. 

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 1842

Course Learning Objectives

• Identify the principal individual income tax changes brought about by recent legislation;
• Apply the inflation-adjusted and other limits to the proper preparation of taxpayers’ income tax returns;
• Recognize the federal income tax filing statuses and the criteria for their use;
• Describe the current status of tax extenders;
• Identify the types of income that must be recognized;
• Apply the tax rules to the various credits and adjustments to income that are available to taxpayers;
• Recognize the penalties that may be imposed on a preparer for failing to meet ethical and practice standards in preparing tax returns; and
• Identify the duties and restrictions imposed on tax preparers under Circular 230.

Chapter 1
Recent Updates

• Identify the inflation adjustments to various federal limits;
• Recognize the optional standard mileage rates; and
• Apply the required minimum distribution rules applicable to traditional IRAs and retirement plans.

Chapter 2
New Law & Tax Extenders

• Describe the health insurance premium tax credit increase brought about by ARPA;
• Recognize the rules for repayment of COVID-19 related distributions from retirement plans;
• Identify the rules governing nonitemizers’ permitted adjustment for charitable contributions;
• Recognize the income tax rules applicable to the Recovery Rebate Credit; and
• Describe the current status of tax extenders.

Chapter 3
Individual Income Components

• Identify the items included in a taxpayer’s taxable earnings;
• Determine the tax treatment of foreign accounts and trusts;
• Apply the rules governing contributions to and distributions from IRAs;
• Understand the tax treatment of retirement income;
• Describe the reporting and taxability of unemployment compensation; and
• Apply the rules governing the tax treatment of alimony under post-2018 divorce agreements.

Chapter 4
Proprietorship Income

• Recognize the items included in self-employment income and expenses;
• Distinguish between a hobby and a business for tax purposes;
• Calculate the tax deduction for business use of a home; and
• Identify the recordkeeping requirements to substantiate Schedule C entries.

Chapter 5
Individual Deductions & Credits

• Determine the eligibility for, and amount of, standard deductions;
• Identify the limitations applicable to Schedule A itemized deductions; and
• Recognize the eligibility requirements for and limits applicable to the common tax credits.

Chapter 6
General Income Tax Review I

• Recognize the tax treatment of virtual currency;
• Determine the applicable alternative minimum taxable income exemption;
• Calculate the qualified business income deduction available to pass-through entities;
• Apply the rules for taxing the unearned income of dependent children; and
• Identify the broadened § 529 qualified education expenses resulting from the passage of the Tax Cuts and Jobs Act and the SECURE Act.

Chapter 7
General Income Tax Review II

• Recognize the expanded exclusion from income of student loan indebtedness authorized under the American Rescue Plan Act (ARPA);
• Identify the tax treatment given to Achieving a Better Life Experience Act (ABLE) accounts;
• Determine the modification of net operating losses imposed under the CARES Act;
• Identify the tax treatment of employee fringe benefits;
• Describe the rules governing a taxpayer’s tax withholding and estimated tax payments; and
• Recognize the options available to a taxpayer for paying any tax due or receiving a tax refund.

Chapter 8
Preparer Practices, Procedures & Responsibility

• Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
• Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
• Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
• Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC; and
• Understand the e-file requirements.

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