Mastering BizTax: S Corps, EA Exam Prep, and Internship | EPISODE 21 | Borderless Accountants

Welcome back to the US Business Tax Preparation course by the Borderless Accountants! In this session, we cover crucial information on S Corporations (S Corps), important updates regarding the community's internship program, and strong encouragement to pursue the Enrolled Agent (EA) license.

We dive into the fundamentals of S Corps, including the Form 1120S, the importance of the $7203$ form for tracking basis, and the complexities of the Accumulated Adjustments Account (AAA) and Other Adjustments Account (OAA) for distributions.

You'll also get the latest updates on:
The upcoming internship program with partner firms, including the opportunity to work with UltraTax software.
Why the EA license is highly valued by US tax firms and how it can open doors to higher-paying opportunities.

Chapters:

0:00:05 Welcome & Community Invitation
0:00:47 Prayer and Personal Update (Speaker burnout)
0:03:26 Conversation Starters and the Meaning of "Fine"
0:05:46 Resource Updates and Sharing Screen
0:06:20 Resource Review (Thanksgiving, 1065 Returns, M1/M2)
0:09:09 Importing K1 into Personal Tax Returns
0:10:22 Free Tax Prep Course Resource using UltraTax
0:13:50 UltraTax Interface & Software Preferences
0:14:46 Quiz Updates and Reminders for the Team
0:15:35 Internship Opportunities Update (with Brendan)
0:17:31 Brendan's Frustrations and Importance of the Internship
0:19:44 Update on Recruiter and Carol's Visit to Cebu
0:20:18 Call for Help and Pioneers in the BA Community
0:21:09 Volunteers: Miles (LinkedIn) and Chris G (Website Errors)
0:22:42 Discussion on Shaky Tax Firms and High Turnover
0:24:54 Encouragement to Take the EA Exam
0:26:38 Review of a Senior Accountant Job Opportunity (Requires EA)
0:27:18 Explanation of CAF Number for EA License
0:27:56 How to Validate an EA License via IRS Search
0:29:40 Warning about Scams and Fraudulent Georgia-Based Firms
0:31:38 Demonstration of the IRS Practitioner Search Tool
0:33:55 Discounted Glime EA Exam Review Course
0:35:36 Why EA is Lucrative and Better than CPA for US Tax Remote Work
0:36:44 EA License Renewal (CPE Credits)
0:38:20 Caution on Burnout and Setting Expectations in the Tax World
0:41:25 The Strategy of Unpaid Internship vs. Paid Internship
0:42:50 Recommendation to Practice Interviewing
0:44:27 Growth Potential in US Tax Prep (Double Rate in a Year)
0:46:19 Recommendation: Start Part-Time and Test the Waters
0:46:59 Personal Requirement for Full-Time Night Interns (US Hours)
0:53:15 Brendan's Use of AI and Tax Planning Tools
0:55:46 Time Zone Differences (Hawaii)
0:56:04 Review of 1065 (Partnership) Items
0:57:48 Introduction to S Corporations (S Corps)
0:58:39 Eligibility and Election for S Corp Status
1:03:59 LLC Classification and Importance of Form 2553
1:05:22 Benefit of S Corp for Schedule C Filers (Avoiding Self-Employment Tax)
1:07:09 Threshold for Switching to S Corp (e.g., $100K$ Income)
1:08:50 Deadline for S Corp Election (Two Months and 15 Days)
1:10:48 Filing for Late Election and Justification
1:13:50 Power of Attorney (Form 2848) and EA Designation
1:15:24 Mailing Instructions for IRS Forms
1:16:35 Importance of Form 7203 for Basis Tracking
1:17:58 S Corp Distribution Example (AAA and E&P)
1:18:29 Conclusion and Plan for Next Sessions