Today TaxMama® wants to talk about the upcoming tax filing deadline on September 15th for calendar year entities. Returns that are due include partnerships, corporations – C & S, certain estates and trusts. It’s important to know what to get ready for your tax pro or you.
After decades of preparing business returns for my own clients, teaching my students or advising others, I take a lot of organizations elements for granted. There are certain minimum reports you need when you prepare an entity’s tax return – whether you do it yourself, or have a tax pro help you. Here’s the list of the copies we need – not originals:
- All 1099s and other outside party reports sent TO the business.
- Copies of all estimated tax payments made by your business to the IRS and state, if applicable.
- Sales tax returns for all periods (monthly, quarterly, semi-annually, or annually)
- Payroll tax returns – note: if your business is a corporation, YOU need to be on payroll. They are needed for each quarter, plus the year-end reports that include the W-3/W-2s, and unemployment insurance.
- Copies of all state, city, county or other reports you have (or should have) filed during the year.
- 1099s – copies of all that were filed. They should have been filed no later than March 31st if they were filed electronically. By February 28th, if filed on paper.
- Mileage report on each business vehicle – it should include total miles driven and the business miles
- Financial Statements – and yes, if you are filing an entity tax return – you SHOULD be keeping books. Know if you file on cash or accrual – and pull both reports using the same accounting method
- Profit and Loss Statement
- Balance Sheet
- Detailed General Ledger – to look up information in certain accounts to see if all expenses are recorded in the correct place – and if they are deductible.
While not absolutely essential, a copy of all the December bank statements for your business, reconciled.
I know this seems like a lot. And it might seem as if your tax pro is auditing your business. We are not. What we are doing is matching up everything that the IRS and state governments know about you. By reconciling all these elements, we are able to reduce your audit risk substantially.
And remember, you can find answers to all kinds of questions about business tax returns and other tax and business issues, free. Where? Where else? At www.TaxMama.com.
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