It’s that time of the year again, and you will have to meet with your CPA to file your taxes. As a business owner, this is probably a troubling time because you probably never feel organized. But, when cutting it close to the tax deadline, you will need to be as organized as possible, especially if you don’t want to file for an extension.
So, how do you know what to bring to a tax appointment?
Keep reading, and you will find out what your CPA or tax consultant will need for you to file your tax returns.
Bring Your Personal Items
The most important things to gather will be personally identifiable items. The two most important ones will be your photo ID and social security card. Your photo id should be a government-issued id such as a license or a state identification card if you don’t have a social security card, a social security verification letter, or an individual taxpayer identification number assignment letter.
In addition, you will want to know your bank account information for your business account, preferably if you are filing as a business owner. A voided check will be an acceptable item to bring. And if you can’t remember this information off the top of your head, you can always find your bank’s routing number online and log into your online account to find out what your checking or savings account number is.
Collect Your Business Income and Expense Info
One of the most critical items you will need to bring is all the financial information related to your business for the year. This includes sale receipts from goods or services, proof of refunds, and any interest or investment income.
Additionally, you will want to include expenses you incurred for the year. This will include things like insurance costs, costs of supplies, overhead costs, professional fees, transportation costs, and any other relevant expenses.
If you operate a business out of your home, you will need to gather the same information listed above. But the only difference is you will need to know the percentage of your home you use for the business.
Another thing to keep in mind is tax deadlines. For those filing as S-corps, remember that you will need to file before the March 15 deadline. Sole proprietorships, single-member limited liability companies, and C corporations will need to file by April 15.
Forms You’ll Need
When filing with your CPA or tax professional, they will know which forms you need for your company. The most important thing you will need to know is how you set up your business. Are you operating as a sole proprietor, a partnership, an LLC, or some other type of business? You or your business representative will need to know this when filing.
Here is an insight into the forms you can expect to use when filing.
● Sole Proprietorship:- Tax Form 1040, along with Schedule C
● C-Corps – Tax Form 1120
● Partnerships – Tax Form 1065, along with partner info on Schedule K-1
● S-Corps – Tax Form 1120-S
Again, you won’t need to supply these forms since your CPA or tax consultant should have these forms on hand. But familiarizing yourself with what is on the form can help you prepare well for your tax meeting.
File an Extension If Necessary
There will be sometimes when you will not be able to file your business taxes on time. In such cases, you will need to file for a business extension which is usually about six months.
Filing your business taxes is never fun. Luckily, working with a CPA or tax professional can make things run more smoothly than trying to file them on your own. Remember that as a business owner, tax issues can be complicated. So, having someone complete your taxes which is well-versed in tax law, will keep your financial records in order and minimize the chances of an audit.
How can a CPA help you with your business taxes this year? Contact Tax Avenger, our tax and accounting firm in Canton to set up a Free consultation. A CPA with vast experience is ready to discuss your tax preparation needs.
Visit us online to learn more about our tax and accounting services including bookkeeping services, payroll services, tax problem resolution and more.