C Corporation Taxation: Form 1120, Dividends & Planning

Categories: Federal Tax, IRS CE
Wishlist Share

About Course

This self-study course provides enrolled agents, CPAs, and tax return preparers with a comprehensive understanding of C corporation taxation — from entity formation and filing requirements through corporate distributions, dividends, and advanced tax planning strategies.

The C corporation is the only business entity that pays income tax at the entity level, creating the well-known double taxation structure. The flat 21% corporate tax rate established by the Tax Cuts and Jobs Act of 2017 changed the analysis for many business owners considering entity choice, making the C corporation more attractive in certain circumstances.

This course covers Form 1120 filing requirements, corporate deductions including the dividends received deduction (DRD) and net operating losses, earnings and profits analysis, constructive dividends, stock redemptions, and planning strategies including shareholder fringe benefits, retained earnings, Section 1202 QSBS, and the Corporate Alternative Minimum Tax.

Show More

Related Courses

What Will You Learn?

  • Identify the key characteristics of a C corporation and distinguish corporate-level taxation from pass-through entities
  • Apply the flat 21% corporate income tax rate and calculate corporate taxable income using Form 1120
  • Determine Form 1120 filing deadlines, extension procedures using Form 7004, and estimated tax requirements
  • Apply corporate deductions including the dividends-received deduction (DRD) and net operating loss (NOL) rules
  • Calculate earnings and profits (E&P) and characterize distributions as ordinary dividends, return of capital, or capital gain
  • Identify constructive dividends and apply reasonable compensation standards to prevent reclassification
  • Apply Corporate Alternative Minimum Tax (CAMT) rules under the Inflation Reduction Act
  • Evaluate stock redemption and corporate liquidation tax consequences for planning purposes

Course Content

Module 1 – C Corporation Fundamentals and Entity Selection
This module establishes the legal and tax characteristics of a C corporation and compares corporate-level taxation with pass-through entity structures. You will learn the defining features of Subchapter C, how the flat 21% corporate tax rate introduced by the Tax Cuts and Jobs Act of 2017 changed the entity selection analysis, the mechanics of double taxation, and the planning advantages unique to C corporations including retained earnings, shareholder fringe benefits, and QSBS eligibility under §1202.

  • C Corporation Fundamentals and Entity Selection

Module 2 – Form 1120: Income, Deductions, and Tax Calculation
This module covers the preparation and filing of Form 1120, the U.S. Corporation Income Tax Return. You will work through corporate taxable income calculations, allowable deductions including the dividends received deduction and net operating loss rules, Form 1120 filing deadlines, Form 7004 extension procedures, estimated tax payment requirements under §6655, and the Corporate Alternative Minimum Tax introduced by the Inflation Reduction Act.

Module 3 – Corporate Distributions, Dividends, and Shareholder Taxation
This module examines how C corporations distribute earnings to shareholders and the tax consequences at both the corporate and shareholder level. Topics include the calculation of earnings and profits, the ordering rules that characterize distributions as ordinary dividends, return of capital, or capital gain, constructive dividends and reasonable compensation standards, stock redemption tax treatment under §302, and the tax consequences of complete corporate liquidation.

Module 4 – C Corporation Planning: Fringe Benefits, Retained Earnings, and Tax Strategy
This module addresses advanced planning strategies that minimize the combined tax burden of a C corporation and its shareholders. You will analyze shareholder fringe benefits, accumulated earnings tax exposure under §531, personal holding company rules under §541, the Section 1202 qualified small business stock exclusion, retained earnings strategies, and entity conversion planning for C corporations considering S corporation elections.

Final Assessment – C Corporation Taxation: Form 1120, Dividends & Planning
You have completed a comprehensive review of C corporation taxation, covering Form 1120 reporting, earnings and profits analysis, corporate distributions and stock redemptions, and advanced planning strategies including the Corporate Alternative Minimum Tax. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

Scroll to Top