August 30, 2022 8:00am – 11:30am Map & Directions 602-252-4144

Webcast: Arizona Passthrough Entity Tax: Overview and Update on Developments to Date (8-11:30)

Description

For 2022 tax years, Arizona's elective passthrough tax takes effect for eligible entities, allowing qualified Arizona passthrough entities' equity holders to potentially take advantage of a larger deduction for Arizona income taxes pursuant to IRS Notice 2020-75. 

In this course we'll look at the mechanics of making the election to pay the Arizona passthrough entity tax, the requirements to gain a maximum benefit of this tax election under IRS Notice 2020-75 (or successor regulations), what entities qualify to make this election and what we know about how the tax will be reported and paid to the Department of Revenue.

Location

ASCPA Live Online Webcast
Phoenix, AZ 85034-6617

Registration Time

7:30am

Fees

Member:
$160
Non-CPA Staff:
$210
Non-CPA Staff (100% club):
$160
Non-CPA Staff (sole proprietor):
$160
Non-Member:
$210
Webcast
Taxation
4

Objectives

  • History of state level passthrough entity taxes prior to the Tax Cuts and Jobs Act and their tax treatments - setting the stage for the workarounds.
  • State passthrough entity taxes passed in response to the Tax Cuts and Jobs Act state and local income tax deduction cap and initial IRS reaction.
  • IRS Notice 2020-75: the requirements to gain the promised benefits of the state passthrough entity taxes.
  • Entities that qualify to make the election to pay the Arizona entity-level tax and equity holders whose income is eligible for inclusion.
  • Shareholder/partner opt-out election mechanics and differing treatment of resident/nonresident equity holders.
  • Complications arising from passthrough taxes:
    • Treatment by other states for nonresidents and Arizona treatment of other states' passthrough entity taxes for Arizona residents.
    • Allocation of PTET tax paid:
      • Advisability of making modifications to partnership/operating agreements.
      • S corporation allocation of deduction vs. allocation of credit differences - a possible problem with no real solution.
  • Advising passthrough clients on making the election and advising equity holder regarding opt-out decisions.

 

Course Level

Update

Vendor

Thomas, Zollars & Lynch, Ltd. More With This Vendor

Designed For

 

Prerequisites

None.

Event Leaders

Zollars, Edward K.

Rating: 4.87


Edward K. Zollars, CPA, is in public practice in Phoenix, Arizona as a partner with the firm of Thomas, Zollars & Lynch, Ltd. He has been in practice for more than 35 years, specializing in tax issues for closely held businesses and individuals.

Zollars has been professionally involved with both tax and technology issues, combining the two disciplines in producing the Current Federal Tax Development Update Podcast and website, dealing with current tax issues. He has been a member of AICPA Tax Division Committees focusing on tax and technology issues and was the Tax Section’s representative on three occasions to the AICPA’s Top Ten Technologies project. He is also a member of the Phoenix Tax Workshop’s Advisory Committee and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs. Zollars was selected as a Life Member by the Arizona Society of CPAs in May, 2010.

Along with writing, editing and presenting courses for Loscalzo Institute, Zollars has written articles published in Practical Tax Strategies and the Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups, and served as systems operator on the AICPA’s Accountants Forum in the mid-1990s.

He has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state societies of CPAs.


More With Zollars, Edward K.

Highlights

 

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