welcome everyone I'm Jen Boyd and I'm a CPA content developer for you world I work with an
extensive team of acclaimed accounting Educators practicing CPAs csis cfps phds and attorneys
all dedicated to delivering excellent content that makes the hard stuff easy to understand
today we're going to do a quick overview of one of the new discipline options for the 2024 CPA
exam tax compliance and planning or TCP this is our third and final in a series of short
videos designed to help you better understand the new discipline areas featured in the 2024 exam
although basic tax knowledge is still being tested in the reg core section of the exam
starting in 2024 a candidate may choose TCP to demonstrate a deeper knowledge of tax
looking at how the four current sections compare with the future exam you can see
that some content will be moved from reg into TCP this includes tax compliance regarding the
exercise of incentive stock options at risk and passive loss limitations on the gifting of assets
imputed interest on a below market rate loan and compensation earned while employed outside the U.S
in addition most of the property transactions other than basis determination and depreciation
will be moved over to TCP the TCP section will test the non-routine
more complex tax compliance transactions of individuals and business entities
examples include net operating losses Consolidated tax returns transactions between the owners and
the entity non-taxable property dispositions as well as business formation and liquidation issues
however the main focus of TCP is on determining the tax implications of proposed transactions
and personal financial planning strategies related to tax candidates will be expected to analyze data
required for tax return preparation as well as to resolve issues produced by automated
Diagnostic and validation checks generated from tax preparation software before you think that
text is not for you let's discuss why you might want to consider the TCP discipline first none of
the specialized disciplines including TCP expects a candidate to be an expert in the field instead
the disciplines are designed to allow candidates flexibility regarding areas of personal interest
so why tax to start with everyone businesses and individuals must consider the tax implications of
their operations because tax consequences are a key component for major business decisions it's
a great way to add value to Services provided to clients tax compliance has always been a
part of the services offered to clients by CPAs however over the last few years there's been
an increasing demand from clients to provide personal and financial tax planning services
so candidates in the area of tax need an analytical mindset to understand
what information is required to make financial planning decisions and be able to execute the
plan within the existing regulatory guidelines but what tax activities are newly licensed CPAs
expected to perform compliance and planning tasks focused on the more advanced areas of Taxation
compliance includes applying current tax law to an entities operations examples could be identifying
taxable and non-taxable transactions the treatment of related party transactions multi-jurisdictional
taxation property transactions and the tax implications of business formations and
liquidations planning focuses on providing tax advice by analyzing tax alternatives
for individuals and other business entities to minimize future tax liability while maximizing
wealth areas of tax planning include individuals Partnerships SMC corporations Estates and trusts
a background in taxation opens doors to careers in any industry including private public and
governmental as a financial advisor tax consultant tax preparer tax auditor or wealth manager
if you're looking for a career that offers job stability and that allows you to help and advise
clients TCP might be the right discipline for you we hope you found this quick overview of the
new TCP discipline helpful as the CPA Evolution approaches we invite you to continue following New
World our team is dedicated to helping all facets of the profession from candidates to professors to
firms ensure success during this major transition thank you so much for joining us and best of luck