Professional Tax Preparation Level III

60–80 hours instructor-led course

Course Outcomes

Upon successful completion of the Professional Tax Preparation Level III course, students will be able to:

1. Analyze and apply advanced federal tax laws to complex individual and business tax situations.
2. Prepare advanced individual income tax returns (Form 1040) involving investments, rental properties, self-employment income, cryptocurrency, foreign income, capital gains and losses, passive activities, and Alternative Minimum Tax (AMT).
3. Prepare business tax returns for sole proprietorships, partnerships, LLCs, S corporations, and C corporations, including entity-specific deductions and tax planning strategies.
4. Calculate depreciation and asset basis using MACRS, Section 179, bonus depreciation, cost segregation, and depreciation recapture rules.
5. Develop effective tax planning strategies for individuals, families, and businesses to minimize tax liabilities while remaining compliant with federal tax laws.
6. Conduct professional tax research using the Internal Revenue Code, Treasury Regulations, IRS Publications, Revenue Rulings, Revenue Procedures, and court decisions.
7. Represent taxpayers before the IRS by responding to notices, preparing audit documentation, requesting penalty abatements, establishing installment agreements, and understanding the appeals process.
8. Prepare multi-state and international tax returns, including residency determinations, foreign earned income exclusions, foreign tax credits, FBAR, and FATCA reporting basics.
9. Apply advanced payroll and employment tax rules, including worker classification, payroll tax compliance, and payroll tax corrections.
10. Advise clients on retirement, estate, and gift tax planning, including IRAs, SEP IRAs, SIMPLE IRAs, Solo 401(k)s, trusts, and estate tax considerations.
11. Maintain ethical standards and comply with IRS Circular 230, professional responsibilities, confidentiality requirements, and due diligence obligations.
12. Manage a professional tax practice, including client onboarding, workflow management, electronic filing compliance, cybersecurity, record retention, pricing strategies, and quality assurance.
13. Utilize professional tax preparation software to prepare, review, electronically file, and troubleshoot complex tax returns.
14. Complete comprehensive case studies by analyzing client financial information, identifying tax issues, preparing accurate tax returns, and presenting tax-saving recommendations.
15. Demonstrate advanced client communication and consultation skills by conducting interviews, explaining tax results, and recommending tax planning opportunities in a professional manner.
16. Prepare for senior-level employment or independent practice as an advanced tax professional, tax consultant, tax office manager, or business tax advisor.